§ 1. Mr. Dormandasked the Secretary of State for Energy when he next intends to meet the chairman of British Coal to discuss investment in the industry.
§ The Secretary of State for Energy (Mr. Peter Walker)I have regular meetings with the chairman of British coal to discuss all aspects of the coal industry.
Mr. DormanIs the Secretary of State aware that British Coal's borings off the north-east coast have led to the discovery of millions of tonnes of new coal reserves? As north-east pits already go miles underneath the sea, will the Secretary of State do all that he can with the chairman of British Coal to ensure that the new reserves are exploited and so safeguard the jobs of thousands of north-east miners, especially in an area where there is no alternative employment?
§ Mr. WalkerI know that the Coal Board's policy is to invest heavily in areas where good seams of coal are discovered and, therefore, that it will be tapping those areas. As I have said, it is anticipating about £2 billion worth of new investment in the coal industry over the next three years. I am sure that it will carefully consider prospects in the north-east.
§ Mr. FallonWill my right hon. Friend confirm that the north-east coalfield is now profitable for the first time in years? Does he look forward to the day when those who work for British Coal have the same opportunity to invest in their own industry as those who work for British Gas? If he sees Arthur, will he tell him?
§ Mr. WalkerProductivity in the north-east is at an all-time high and I welcome that. As I have told the House, there are no plans for the privatisation of the coal industry at present—
§ Mr. JannerAt present?
§ Mr. WalkerThat is so because substantial losses are being made. That is what I have always said to the House. If there comes a time when the miners can participate more directly, I shall be delighted.
§ Mr. MasonOn future investment, what is the Secretary of State's view about the introduction of the pit-by-pit productivity schemes, with all the inherent concerns about safety in the mines? What will be the total investment involved if it is extended throughout all the coalfields?
§ Mr. WalkerI know of no such scheme.
§ Mr. MarlowMay I put it to my right hon. Friend that one way to secure increasing investment in the pits is to offer groups of miners the right to lease their mines, to hire their own management and, as a co-operative, to raise money on the open market, thereby involving themselves directly in their own jobs?
§ Mr. WalkerI am pleased to say that the Coal Board has given a direct interest to miners through the various productivity incentive schemes. I must point out that one of the complications for the coal industry is that one customer takes the majority of coal in this country and has a dominating position. Therefore, the marketing of coal has to be carefully organised.
§ Mr. OrmeWhen discussing investment, did the Secretary of State raise the serious exodus from the mining industry? I am sure that he will agree that investment means money not only for machinery and development but for recruitment and training? Does he agree that a serious situation will arise next year if that exodus continues at its present alarming rate?
§ Mr. WalkerAs the right hon. Gentleman knows, with his great interest in this topic, a major rationalisation of the industry will have taken place by March next year and the results are—I think he will agree—staggering. In the week before last, for example, coal production in this country was 2 million tonnes in one week, which is similar to what it was before any dispute, with a third fewer people employed. I think that rationalisation and improved productivity have proved to be correct and very much in the industry's interest. Of course, training and recruitment are important for the furture.