HC Deb 23 March 1981 vol 1 cc624-5
17. Mr. Dormand

asked the Secretary of State for Energy if he is satisfied with the progress being made on coal liquefaction; and if he will make a statement.

Mr. John Moore

The NCB has developed two very promising oil-from-coal processes, and discussions are at present taking place with the board on the best course for further action. I am satisfied with the progress of these discussions.

Mr. Dormand

Does the Minister agree that that answer reflects yet again the Government's complacency in this matter? Will the Minister give not only more financial support, but moral support to this most exciting project? Does he agree also that the fact that the European Community and BP are prepared to give money towards the construction of the project that he mentioned shows that it should be supplemented by assistance from the Government?

Mr. Moore

Highly complex considerations are involved here on the technical front and in the organisation of the consortium that is to participate in the next stage. The Government are well aware of the urgency of the matter, but very complex issues are involved. The Government are in the middle of discussions with the board on the subject.

Sir David Price

Since coal gasification has been known for a long time, and bearing in mind the significance of the comparative price, will my hon. Friend remember that a long lead time is involved here? Will he therefore consider promoting a joint venture between the NCB and the chemical industry?

Mr. Moore

My hon. Friend is right. The lead times are lengthy. Economics is the key, and my hon. Friend will be aware of the extremely good work that is being done on this subject by the British Gas Corporation. We are concerned in this question with coal liquefaction.

Mr. Eadie

Since the Minister's Front Bench team has been trying to tell us today how dynamic the Department is, does he accept that his answers do not smack of dynamic government? The Government have had two years in which to reappraise this project. Is it true that, as press reports indicate, Ministers are bringing in other scientists to reappraise the project, which had already been agreed upon? Is it not time that the liquefaction programme went ahead and that all the shilly-shallying, with only the expectation of results in the near future, was brought to an end?

Mr. Moore

I am glad to say that the Government are associated not only with dynamism, but with rationality. Rationality is a crucial and key feature of decisions of this nature, which affect the nation's future.

Mr. Adley

Would there be any political objections from the Government or the NUM to a full partnership between the National Coal Board and private sector interests, as suggested by my hon. Friend the Member for Eastleigh (Sir D. Price)? Will my hon. Friend pursue this matter as hard as he can?

Mr. Moore

I am sure that all hon. Members, the NUM and the NCB would like to consider the positive tenor of my hon. Friend's suggestion, which seeks to involve the private sector in the development of our important coal resource.