HC Deb 28 March 1983 vol 40 cc14-5
17. Mr. Knox

asked the Secretary of State for Energy whether he is satisfied with progress towards the development of a European Community energy policy.

Mr. John Moore

I should like to see early progress on a Community coal strategy.

Mr. Knox

Are our European partners expected to shoulder the losses of the British coal industry?

Mr. Moore

No. I hope that within the European coal policy we can expect a balanced package of aid for economic coal production and use. Clearly our coal industry recognises the importance of investment in economic development and restructuring to cover the problems of our older, historic coal industry. There will be advantages not only for us but for the European coal policy's attempt to reduce dependency on coal.

Mr. Eadie

Would it not be appropriate to tell the House that the coal produced in Britain is cheaper than the coal produced in western Europe?

Mr. Moore

That is certainly true of deep coal mining. The United Kingdom produces the cheapest deep-mined coal in western Europe.

Mr. John H. Osborn

Does my hon. Friend agree that a European energy policy should cover all sources of energy? What progress is being made with an electricity grid across the Channel? What further consideration has he given to a European gas grid to join our gas pipeline to that of the remainder of western Europe?

Mr. Moore

Good progress is being made with the electricity grid across the Channel. I shall return later to my hon. Friend's point about a potential gas interconnection.

Mr. Edwin Wainwright

Will the Minister admit that the coal produced in Britain is cheaper because the subsidies that overseas countries give to their coal industries are far greater than the subsidies that Britain gives to its coal industry?

Mr. Moore

The hon. Gentleman must remember that investment in the future coal industry is running at triple the rate of comparable investment by the next substantial coal producer, West Germany, which produces about 90 million tonnes. The other relatively high support levels are for static and declining industries in France and Belgium, which I should not think the hon. Gentleman would want the British coal industry to emulate.