HC Deb 31 January 1983 vol 36 cc9-11
11. Mr. Joan Evans

asked the Secretary of State for Energy when he proposes to meet the chairman of the National Coal Board and the president of the National Union of Mineworkers to discuss future investment in the coal industry.

Mr. Lawson

I shall continue to meet hem as appropriate.

Mr. Evans

If the Secretary of State is considering an early meeting with the chairman of the National Coal Board and representatives of the National Union of Mineworkers, will he guarantee to them that investment in the industry will continue and that he will consider increasing it? Is he aware that South Wales does not seem to be getting a fair share of coal board investment? I refer in particular to investment in the Phurnacite plant in the Aberaman area, where it is planned to go over to an ancit process?

Mr. Lawson

Investment in the coal industry is running at a substantial level—at about £800 million a year or more—despite the fact that it is likely to make a loss of about £500 million this year before taking deficit grant into account. As the chairman of the National Coal Board has made clear on a number of occasions, a pound is a pound. That is as true in South Wales as in the rest of the country. A pound that goes in losses and uneconomic pits is a pound less for investment in the industry.

Mr. Rost

Will my right hon. Friend do something about that by pressing the coal industry to generate more of its investment requirement without increasing the taxpayers' deficit, by speeding up the closure of uneconomic and high-cost capacity?

Mr. Lawson

The Government's policy is that the coal industry should move towards viability, but that cannot occur overnight.

Mr. Gwilym Roberts

Will the Secretary of State discuss with the chairman of the NCB and the Government of Ireland the possibility of substituting British coal, at present used in Northern Ireland, for the alternative fuel now being used by Ireland? What effect is that likely to have on investment in the coal industry and on the market for British coal?

Mr. Lawson

I am not sure whether that is a matter for me. In any event, I do not know the answer. If the hon. Gentleman writes to me, I shall do my best to respond.

Sir Anthony Meyer

Can my right hon. Friend reassure me and my constituents that the proposal for investment in the coal liquefaction plant at the Point of Ayr in my constituency is set to go ahead? When is work expected to start on the project?

Mr. Lawson

The Under-Secretary made a statement in November last year and progress continues to be made towards the board's liquefaction project at the Point of Ayr.

Mr. Eadie

Will the Secretary of State consider amending his reply to my hon. Friend the Member for Aberdare (Mr. Evans)? The right hon. Gentleman said that he would meet the industry's representatives "as appropriate." Does he agree that, according to the answers that he has given, it is appropriate for him to meet representatives of the industry? Will he ignore the parrot cries for a massive pit closure programme and be constructive by introducing a programme for new capacity involving new pit sinkings?

Mr. Lawson

I take note of the hon. Gentleman's advice. He has great experience of the coal industry. The problem with the coal industry is not meetings, but economics.