HC Deb 16 December 1985 vol 89 cc8-9
10. Mr. Eadie

asked the Secretary of State for Energy if he has been informed of the likely level of coal imports until the end of 1985 by the chairman of the National Coal Board.

Mr. Peter Walker

The chairman of the NCB is not responsible for coal imports. The increase in imports which has taken place this year has been influenced by contracts placed during the strike and by loss of confidence in the security of indigenous supplies. I hope that by improved performance we can return to the 1983 position, when Britain was a net exporter.

Mr. Eadie

We would expect the Secretary of State to be worried about coal imports, even this year, because of their effect on the prospects of the mining industry. Baron Marshall has made veiled threats today about coal imports in 1986, and is the right hon. Gentleman aware that there still persists, in circles of which we are both aware, the allegation that the NCB refused an order for £3 million of exports to Denmark? Can the right hon. Gentleman enlighten us about that allegation?

Mr. Walker

I have no details of anybody refusing an order at any sensible price. I am sure that the NCB would be eager to take advantage of such an opportunity, and the present chairman of the board has shown more interest than perhaps any of his predecessors in the possibilities for exports.

The main encouraging sign that we shall not need imports is that, for the first time in the history of the coal industry, productivity last week totalled more than 3 tonnes per man shift. That encouraging trend and the improved efficiency of the industry will prevent the need for imports.

Mr. Rost

Now that the board needs to waste fewer of its resources on subsidising hopelessly high-cost coal production and can instead reallocate those resources to opening new, low-cost coalfields, will it not be a question of re-establishing our export orders, rather than having to import? British coal will be competitive again.

Mr. Walker

There is no doubt that in the next few years, with the high investment and improved productivity that are taking place, Britain can have the most efficient and successful coal industry in western Europe by a long way. That will open a range of new opportunities, including export opportunities.

Mr. Ryman

Is not the right hon. Gentleman far too complacent about the present state of the coal industry? Bearing in mind the high level of imports and the new colliery review procedure, which has not got under way and is not understood by the Department of Energy, the NCB or the NUM, it would be helpful if the right hon. Gentleman would tell the House when the new colliery review procedure, in so far as he knows anything about it, will begin its proceedings.

Mr. Walker

I hope that that will be done very soon. The finer points of detail were settled last week. I remind the hon. Gentleman of what I said in my original reply, namely that in 1983 Britain was a net exporter of coal. The effects of the strike and the insecurity and loss of supplies created the need for increased imports of coal. I hope that the performance of the industry will ensure that that need is eliminated.

Mr. Skinner

How can it make sense to read reports during the past few days of ships loaded with 110,000 tonnes of coal coming into the north-east at a time when Britain's non-oil trade deficit is well over £4,000 million?

Mr. Walker

I repeat that the strike, which was so enthusiastically supported by the hon. Gentleman, was the main reason for the large increase in imports.

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