§ 18. Mr. Teddy Taylorasked the Secretary of State for Energy what has been the percentage increase in the cost of producing coal per tonne since May 1979; and how this compares with the percentage increase in overall industrial costs over the same period.
§ Mr. John MooreThe percentage increase in the cost per tonne of producing coal, excluding social costs, between 1978–79 and 1981–82 was 59.9 per cent. In the same period the wholesale price index for output increased by 44.8 per cent.
§ Mr. TaylorIs that not a most disturbing figure, showing that the artificially high price of coal is adding unreasonably to other industrial costs? Are not the Government therefore absolutely right to demand that the coal industry should be viable and competitive and not depend on high subsidies and artificially high prices?
§ Mr. MooreNo one who wishes to see our coal industry succeed welcomes the increased costs to which I have had to refer. Equally, I am sure that everyone hopes that the coal industry will serve not just customers using electricity, 82 per cent. of which is coal generated, but the miners themselves and their wish to have secure jobs in the future by containing costs and ensuring security of supply for the industry.
§ Mr. JayIf the Government are so keen on lower costs and higher productivity in the coal industry, why did they delay and obstruct new low-cost developments in the vale of Belvoir?
§ Mr. MooreThe Government in no way wish to delay attempts by other Departments and other interests to ensure that environmental as well as economic considerations are properly taken into account in coal development. The right hon. Gentleman will be aware of the massive increase in new low-cost capacity since "Plan for Coal". I am sure that he will be pleased to know that the Selby coalfield project, begun by the Labour Government, will shortly be coming on stream.