HC Deb 15 December 1986 vol 107 cc761-2
5. Mr. Eadie

asked the Secretary of State for Energy if he will initiate discussions with the chairman of the Central Electricity Generating Board and British Coal with a view to reducing coal imports; and if he will make a statement.

The Parliamentary Under-Secretary of State for Energy (Mr. David Hunt)

Coal imports by the CEGB are a commercial matter for the board. I understand that as part of the agreement announced last June the CEGB has undertaken to purchase 95 per cent. of its annual coal burn from British Coal. In line with this agreement the CEGB expects to continue to limit the amount of coal that it imports.

Mr. Eadie

The Minister must be aware that nearly 5 million tonnes of coking coal, and nearly 500,000 tonnes of anthracite, were imported in the first nine months of this year. He must also be aware of the impact that that will have on Britain's balance of payments and that such a scale of imports will inevitably mean a loss of jobs in our coal industry. Will the Minister give us other than a complacent reply and tell us what the Government will do?

Mr Hunt

The hon. Gentleman should know that the United Kingdom cannot do without imports in the foreseeable future because of the demand for special quality coking coal by the steel industry and because of demand for anthracite in excess of what can be supplied by British Coal.

On general policy, in 1979, when we inherited responsibility from the Government in which the hon. Gentleman had special responsibility for coal, the United Kingdom was a net importer of 2 million tonnes of coal. In 1983 the United Kingdom was a net exporter of 2 million tonnes, but the strike destroyed that position. We are not at all complacent, but the hon. Gentleman seems to have been before he left power.

Mr. Rost

Does my hon. Friend agree that if we had an efficient and competitive coal industry we would not need to import because we would be exporting to the huge market over the Channel in Europe?

Mr. Hunt

My hon. Friend is right. The best protection against imports for the United Kingdom coal industry lies in the industry achieving full production at prices which are competitive in the world market. The House should praise the efforts of men and management for achieving that.

Mr. Mason

What tonnage of South African coal is still coming into Britain, and when will it cease?

Mr. Hunt

The right hon. Gentleman should know that the CEGB does not import coal from South Africa.