HC Deb 19 December 1983 vol 51 cc10-1
12. Mr. Barron

asked the Secretary of State for Energy what steps he is taking to promote the use of British coal within British industry.

Mr. Giles Shaw

The coal firing schemes, providing up to 25 per cent. capital grants and exchange risks cover on ECSC loans, have given the NCB constructive and practical help in its efforts to increase coal's penetration of the industrial sector. The present scheme is expected to generate an extra 2 million tonnes per annum in coal burn.

Mr. Barron

Does the Minister agree with Opposition Members that the expiry of the oil conversion scheme at the end of this month and the fact that there has not yet been a statement from the Secretary of State does not augur well for conversion from other fuels to coal in British industry? When can we expect a statement to the effect that the Government will renew the scheme and look into other areas for investment so that we can switch from oil and gas to coal burning while we have massive stocks of coal for which the country has paid but which we seem unable to use?

Mr. Shaw

I accept the hon. Gentleman's view that we must and should seek an extension to the scheme. I assure the House that discussions are taking place, although we have not as yet been able to reach an agreement.

Mr. Eggar

Is not the best way to make sure that there is more use of coal by industry to ensure that plenty of coal is available on a regular basis and at competitive prices? The miners' overtime ban does not help in this regard, nor does the NCB's refusal, with the assistance of the National Union of Mineworkers, to close down uneconomic pits.

Mr. Shaw

My hon. Friend is right. The long-term future of the industry will depend entirely on its ability to produce coal at prices that the market can sustain.

Mr. Boyes

Is there not a contradiction between promoting coal and closing a pit at Herrington in my constituency? Should not talks take place with the chairman of the NCB about the change of policy regarding people under 50, who have in general been transferred to other pits when their own pits have closed, but for whom in this case the NCB has said that this will not happen? Will the Minister investigate this matter?

Mr. Shaw

The hon. Gentleman has raised an interesting point. I refer him to the recent debate on the Coal Industry Bill, in which reference was made to the conditions under which that colliery was closed.

Mr. Rost

Is my hon. Friend aware that industry would use more coal if it were offered at a more competitive price, and in particular if industry had more choice of purchasing rather than being able to purchase almost only from the monopoly?

Mr. Shaw

I understand my hon. Friend's view, but the fact remains that the bulk of British industry is prepared to buy coal if it fits neatly into the economic arguments for such fuel.

Mr. Orme

I wish to press the Minister further about the boiler conversion unit and an early statement from the Government. What is holding up the making of a statement? What is the difficulty with the Department of Trade and Industry? The date of 31 December is very close, and the Minister should make a statement before the House rises for the Christmas recess.

Mr. Shaw

I am glad to hear the right hon. Gentleman pressing me on this matter. No doubt my right hon. Friend the Secretary of State for Trade and Industry will take note of what he said.