Foundry Coke Subsidy

HC Deb 19 December 1983 vol 51 cc12-3

18. Mr. Hal Miller

asked the Secretary of State for Energy whether he has reviewed the possibility of continuing the foundry coke subsidy.

Mr. Giles Shaw

The foundry coke subsidy is due to end on 31 December.

Mr. Miller

Is my hon. Friend aware of the anxiety in the foundry industry about its competitive position, particularly against foreign competitors with their lower coke prices, in view of the ending of this subsidy? Can he help with a fairly early resolution of the difficulties?

Mr. Shaw

I am well aware of the anxiety in the foundry industry which believes that if the subsidy is removed prices will rise by about £22 a tonne on 1 January. The foundry coke producers have not announced their new prices, but they will do so shortly. I do not believe that this will involve price rises on anything like the scale feared by the foundry industry.

Mr. Rowlands

If those fears do begin to materialise, what will the Government and the Minister do?

Mr. Shaw

The hon. Gentleman will be aware that very long notice was given of the withdrawal of this subsidy. Indeed, some of the producers have already taken major steps because of the warning that it would be reduced. We are still considering the representations of the industry.