§ 2. Mr. Burtasked the Secretary of State for Energy what proportion of coal output in the European Economic Community was produced by the United Kingdom in 1982.
§ The Under-Secretary of State for Energy (Mr. Giles Shaw)British coal accounted for half the coal output of the European Community in 1982.
§ Mr. BurtThe Government's investment in the coal industry puts our level of investment, both in money terms and on a per tonne basis, ahead of that of our EEC counterparts. Does my hon. Friend agree that, despite what is said by the prophets of doom, and although there may be much to do, the future of the industry is not as dull as some might think?
§ Mr. ShawI agree with my hon. Friend. We invest more than any other European producer. We produce more coal and we have a lower average production cost. No doubt for those reasons we now have a positive export trade with Europe amounting to about 5 million tonnes per annum. I trust that that progress will be followed up in new markets.
§ Mr. Ioan EvansWhy do we have a common agricultural policy under which we are compelled to buy food from within the EEC, when, although we produce 50 per cent. of the coal output of the Common Market, countries in the Common Market purchase coal from other parts of the world?
§ Mr. ShawThe opportunity for the sale of United Kingdom coal within the Community is greater now than it ever has been. That is one reason why there is great demand for the type of hard coal that we produce. I do not believe that there is any real relationship between the agricultural policy and the prospects for coal sales.
§ Mr. Kenneth CarlisleIf we did not have to put so much money into keeping uneconomic pits open, would there not be more money to put into new capacity and new pits, or do those schemes not exist?
§ Mr. ShawI believe my hon. Friend recognises that world demand for coal is low and that world coal supplies are high. There will undoubtedly be a period during which an adjustment must be made. That is the line which the Coal Board is pursuing.
§ Mr. BoyesIn a written reply to one of my questions last week the Minister informed me that we were importing 3.5 million tonnes of coal. If there is a lack of demand, why do we have to import coal, while at the same time shutting pits? As the Minister is aware, a pit in my area is to be closed. Would it not be better to keep it open than to import 3.5 million tonnes of coal?
§ Mr. ShawThe hon. Gentleman must recognise that the import of certain coals has always been a feature of our industry. He must equally recognise that 95 per cent. of our indigenous coal requirement is met by the National Coal Board, and that is the significant figure.