HC Deb 08 June 1981 vol 6 cc11-2
11. Mr. Edwin Wainwright

asked the Secretary of State for Energy what have been the recent trends of production in the coal mining industry.

Mr. John Moore

Figures on coal production are published monthly in my Department's statistical bulletin Energy Trends, copies of which are available in the Library of the House. Total United Kingdom deep-mined coal production in 1980–81 is estimated to have increased by 0.9 per cent. compared with 1979–80 and opencast production by 17.2 per cent.

Mr. Wainwright

Has the hon. Gentleman taken into account the extremely good output that was secured in May this year? Has he sent any congratulations to the mine workers and to the NCB on their achievements? Will the Government guarantee that the extra coal being produced will find a market? The Minister's right hon. and hon. Friends often talk about cheap coal on the Continent. Will the hon. Gentleman bear in mind that that coal is often secretly subsidised and that that represents unfair competition? Will the Government watch that aspect?

Mr. Moore

The hon. Gentleman will be aware that at the recent Isle of Man conference organised by the British Association of Colliery Management, I congratulated the industry—as I consistently seek to do—on its increased and improved productivity, which we all welcome. Given the last Administration's actions I am sure that the hon. Gentleman will realise that no Government can overturn the laws of supply and demand. This Government are no more powerful than the Labour Government in that respect.

Mr. Lyell

Will not productivity in the coal industry be greatly improved as miners are persuaded to move from the old pits, with their low rates of productivity, to the new pits, which have much better working conditions? How are such matters proceeding?

Mr. Moore

My hon. Friend has identified a classic feature of a long-term extractive industry. The development of the coal industry involves not only investment in new capacity but the gradual closure of old uneconomic capacity. My hon. Friend will be aware that since new redundancy terms were laid before the House on 11 March there has been consistent progress in turning the old coal industry into a new industry of the future.

Mr. Allen McKay

Does the Minister recall the tripartite agreement on colliery closures and coal imports? When will finance be available for the postponement of the colliery closure programme? What reduction has been made in the number of coal imports? Will the hon. Gentleman note that the three months' strike by American coal miners will result in high wage increases?

Mr. Moore

I shall not pick up the hon. Gentleman's last comment. After recent votes, it has been announced that the American strike has been terminated. As regards my right hon. Friend's two promises, considerable progress is being made. On 11 March Sir Derek Ezra suggested that the approximate cost of the Government's commitments would be between £100 and £200 million. I have nothing to add to the details of the matter. However, there will be a further tripartite meeting on 16 June when discussions will continue.

Mr. Adley

Do not the figures show clearly that the improving trend in productivity dates from the Government's first Budget, when direct taxation was reduced? In his discussions with the mining industry, will my hon. Friend take every opportunity to point that out and to seek support for the Government's taxation policy?

Mr. Moore

Much as I would wish to accept all and absolute responsibility for all successes, I cannot. My hon. Friend has made an important point. The successful remuneration package reflects the Government's taxation policies. However, the long-term investment that has been made in the industry for some years is also part of the story.