HC Deb 17 February 1986 vol 92 cc8-9
7. Mr. Boyes

asked the Secretary of State for Energy if he will make a statement on his policy towards the level of resources available to NCB (Enterprise) Ltd. in the light of the document "Communities in the East Durham Coalfield", produced by Durham county council, Easington district council and Sunderland borough council, a copy of which has been sent to him.

Mr. David Hunt

The Government will continue to monitor closely the adequacy of the funds available to NCB (Enterprise) Ltd. The £20 million to which the company presently has access remains sufficient for its current needs.

Mr. Boyes

I assume that the Minister has had the opportunity to read the document to which I refer—I see he has a copy—and I am sure he will agree that it is well produced, containing a number of interesting and worthwhile projects. The hon. Gentleman will also notice that £31 million of that money is for economic development. Because NCB (Enterprise) Ltd. money is generally channelled through the private sector, which is poorly represented in the region covered by the document, will he make money available for the project? Above all, will he tell me that the principle of channelling money through local authorities is one that the Government find acceptable?

Mr. Hunt

One of the great success stories of NCB (Enterprise) Ltd. has been the way in which for every £1 that it invests in a project, £6 has been attracted from other sources. The cost of creating new jobs, estimated at about £5,000 when NCB (Enterprise) Ltd. was set up, may now drop as low as £1,500. That is a tremendous success story for the company.

Mr. Portillo

Does my hon. Friend agree that that is a great achievement on the part of NCB (Enterprise) Ltd.? Will he confirm that it is his impression that any teething problems which the company experienced have now been overcome? Will he tell the House whether NCB (Enterprise) Ltd. or any equivalent body existed under the previous Labour Government, when so many pits were being closed?

Mr. Hunt

I am happy to confirm what my hon. Friend said. The Government have done something which no other Government have done. They have made the National Coal Board responsible for bringing new job opportunities to mining areas through the work of NCB (Enterprise) Ltd. The Opposition seem to forget that NCB (Enterprise) Ltd. is now creating job opportunities at the rate of 500 a month.

Mr. Dorman

Does the Minister agree that the document shows that the future of the east Durham coal communities mentioned in the question, most of which are in my constituency, is very bleak? In those circumstances, will he press the National Coal Board not to close pits until the work being done by NCB (Enterprise) Ltd. in providing other jobs is firmly established? If not, is he prepared to see more than 30 per cent. unemployment in my constituency?

Mr. Hunt

The hon. Gentleman must recognise that many pits in his constituency and around that area closed at the time of the previous Labour Government when NCB (Enterprise) Ltd. did not exist. By the end of January NCB (Enterprise) Ltd. had committed £1 million to aid new industry in the north-east, creating nearly 500 job opportunities. Of course, pits have always closed, because reserves are exhausted or for economic reasons. The Government have done something about those reasons.