Foundry Coke Subsidy

HC Deb 31 January 1983 vol 36 c12

14. Mr. Hal Miller

asked the Secretary of State for Energy if he will make a statement on the foundry coke subsidy.

Mr. John Moore

The aid will be continued until 31 December and will then end. It will enable increases this year in the list prices of United Kingdom foundry coke to be limited to £5 per tonne on 7 February and a similar increase in the summer. The cost of £8 million will be reflected in increases in the National Coal Board's deficit grant and external financing limit.

Mr. Miller

I thank my hon. Friend for his efforts in securing that decision, which will be especially welcome in the West Midlands foundry industry. Will he confirm the real help that the scheme gives in reducing industrial costs by comparing the price at the end of this year with that obtaining, say, at the end of 1981, and with the prices being paid by continental competitors?

Mr. Moore

The total aid, including the £8 million, will be about £22 million. The NEDC report showed that in January 1981 foundry costs were £103.80 per tonne, so, even with this year's increases, foundry coke costs to British industry will still be less in cash terms than they were two years ago and after the increases this February they will be less than those of all continental competitors except France.