HC Deb 17 February 1986 vol 92 cc5-6
4. Mr. Marlow

asked the Secretary of State for Energy which Organisation for Economic Co-operation and Development countries permit the investment of private sector capital in major deep mined coal operations.

Mr. David Hunt

Investment of such capital is permitted in a number of OECD countries with major coal industries, including Australia and the United States. I shall arrange for a full list to be published in the Official Report.

Mr. Marlow

I am grateful to my hon. Friend. I am sure that he read in today's papers that the workers of the National Freight Corporation, who bought shares in their own company, now find that those shares are worth 22 times what they were when they made the original investment. Will my hon. Friend write today or later this week to Mr. Roy Lynk and ask whether the Nottinghamshire miners might like to set up a similar deal?

Mr. Hunt

My hon. Friend is right to pay tribute to the work force at the National Freight Corporation. The Government have always said that they would look positively at any plan put forward by the miners to take a more direct stake in their industry.

Mr. Allen MacKay

While the Minister is looking at investment, will he look at the level of investment in capital projects in the mining industry that was undertaken pre-MacGregor on the basis of the number of pits and men at that time? Will he take into consideration the rundown of pits and men and bear in mind that it is time that there was a capital review with the object of wiping out the capital debt of the few remaining collieries?

Mr. Hunt

No, Sir. But in the same breath the hon. Gentleman should pay tribute to the fact that under this Government over £4 billion has been invested in the coal industry. The productivity figures are now so good because of the tremendous effort of the work force, combined with clever investment in existing pits.

Mr. Hickmet

Is there any reason in principle why profitable pits should not be privatised?

Mr. Hunt

As we have made clear from the Dispatch Box on a number of occasions, the Government have no plans for privatising the National Coal Board's mining activities, and no discussions on any such proposals have taken place between the Department and the NCB.

Mr. Hardy

Will the hon. Gentleman remind the hon. Member for Glanford and. Scunthorpe (Mr. Hickmet) that the level of industrial investment in the private sector in Britain is well below the average for the Organisation for Economic Co-operation and Development? Would it not be wise for such investment as there is to be channelled into appropriate directions and not into this unwanted direction?

Mr. Hunt

The hon. Gentleman has omitted to pay tribute to the level of investment, 80 per cent of which goes into existing pits and only 20 per cent. of which goes into new pits. The level of such investment is much more than the level in the rest of the Community put together.

Mr. Rogers

During the miners' strike the chairman of the NCB made a commitment not only to the National Union of Mineworkers but to hon. Members that the Margam new mine would be developed when the strike was over. Will the hon. Gentleman comment on whether Mr. MacGregor was lying or whether—

Mr. Speaker

Order. The subject is private sector capital.

Mr. Rogers

Will the hon. Gentleman comment on whether Mr. MacGregor was telling untruths or whether he was saving the money for private development by friends of the Conservative party?

Mr. Hunt

No proposal on the Margam mine has been put to my Department.

Following is the information:

List of the main OECD countries which permit private sector capital investment in deep-mined coal operations

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