HC Deb 14 April 1986 vol 95 cc561-3
1. Mr. Neil Hamilton

asked the Secretary of State for Energy when he last met the chairman of the National Coal Board; and what matters were discussed.

The Secretary of State for Energy (Mr. Peter Walker)

I meet the chairman of the National Coal Board regularly to discuss a wide range of issues concerning the coal industry.

Mr. Hamilton

I thank my right hon. Friend for that reply. Has he taken the opportunity recently to discuss with the chairman of the NCB the future of opencast mining and whether, in the context of the falls in oil prices recently, he feels it necessary to concentrate as much as possible on the lowest possible cost of output? Against that background, would it not be a good thing to remove the restrictions that apply to the small licensed operators in the private sector in conformity with the Monopolies and Mergers Commission's report three years ago? Why has the Department made no move in that direction during the ensuing period?

Mr. Walker

These matters are discussed with the NCB, which has to market the total production of coal. Mr. MacGregor has made no such suggestion to me.

Mr. Mason

Has the Secretary of State raised the issue of bad investment decisions by the NCB? Is he aware that in the area that I repesent vast sums were spent on modernising Redbrook colliery, both on the surface and underground, and that the work force of 1,800 is now fewer than 500 men? The future of the colliery is in doubt. Only six years ago the NCB invested £30 million in driving Kinsley drift, which was hailed as a wonder pit, but last week the NCB announced its closure. Is there no reason for an independent inquiry to be held into the investment decisions at those two pits and others in the coalfield, where vast sums have been lost to the British taxpayer?

Mr. Walker

If the right hon. Gentleman wants an independent inquiry, he should not confine it to the two pits to which he has referred. The inquiry should cover the entire industry and encompass other comparative forms of energy. He will find that when the previous Labour Government were in power—and they invested nowhere near as much as the present Government—many such decisions were taken.

Mr. Patrick McNair-Wilson

As lower oil prices will inevitably increase competition among world coal producers, and as Britain has the largest coal industry in the EEC, has the chairman given any indication of any moves to encourage sales, especially in Europe, where some currencies are now relatively stronger against sterling?

Mr. Walker

Yes, Sir. I know that the management of the NCB has taken an especial interest in improving its international marketing position. At present, competition with low-price oil is an embarrassment and a difficulty for coal industries thoroughout Europe, including our own. It is difficult to predict the future price of oil. I assure my hon. Friend that every consideration is being given by the NCB and the Government to the range of options before us.

Mr. Dormand

Does the Secretary of State agree that industrial relations in the mining industry are the worst they have been for many years and that this has been caused largely by the actions of the chairman of the NCB during and since the strike came to an end? Will he seek to hasten Mr. MacGregor's retirement, while realising that much more than that needs to be done? Will he, for example, have meetings with the full board of the NCB and stress that maximum efficiency will not be obtained until we achieve the goodwill of the miners?

Mr. Walker

I hope the hon. Gentleman recognises that productivity in the coal industry is far higher now than it has ever been since nationalisation. Therefore, there must be some appreciation of a management which has achieved productivity levels and given the industry a better chance of surviving and competing than ever before.

Mr. Robert B. Jones

Will my right hon. Friend now answer the question put to him by my hon. Friend the Member for Tatton (Mr. Hamilton) and say what discussions he will institute with the chairman of the National Coal Board about the Monopolies and Mergers Commission's report on opencast mining?

Mr. Walker

I am aware that a number of my hon. Friends have been lobbied by the opencast industry on this issue. I hope that the industry will recognise that coal marketing by the NCB is done in its totality and that 75 per cent. of coal in this country goes to the Central Electricity Generating Board. When seen in its total context, it might be that the package advocated by Ian MacGregor and the National Coal Board has some sanity and sense.

Mr. Hardy

Does the Secretary of State accept that the NCB could sell 6 million tonnes of coal to western Europe if western Europe was persuaded that it ought not to rely on dumped imports from outside the Community? Will he take the point expressed by the hon. Member for New Forest (Mr. McNair-Wilson) and ensure that far more vigour is used to secure that market for the British coal industry, in the light of the investment that the Government claim they have put into it?

Mr. Walker

It is true that the NCB has taken a great interest—far greater than ever before—in trying to establish export markets. It is not just imported coal that is the competition at present. The considerable lowering of the price of oil has created considerable difficulties.

Mr. Budgen

Is my right hon. Friend desirous of seeing all imports of coal excluded from this countrya and from all the countries of the EEC?

Mr. Walker

No, Sir.

Mr. Orme

When the Secretary of State talks about improved productivity in the mining industry, which we welcome, will he ensure that the fluctuations in oil prices are not used against the mining industry, certainly by the CEGB, as it is currently speculating? Secondly, may I reinforce the comments of my right hon. Friend the Member for Barnsley, Central (Mr. Mason) regarding the Kinsley drift mine and call for an independent inquiry?

Mr. Walker

Under the terms of the nationalisation of electricity, brought about by a Labour Government, the CEGB has a statutory duty to produce electricity at the most competitive and economic price. Therefore, if one criticises the CEGB for pursuing that objective, one is criticising the legislation originally passed by a Labour Government.