§ 18. Mr. Kenneth Carlisleasked the Secretary of State for Energy what progress is being made with coal conversion schemes; and if he will make a statement.
§ Mr. David HuntThe Department of Energy has offered grant-aid under the coal firing scheme of £48 million towards the cost of 420 projects with annual coal burn of 2.7 million tonnes. The scheme will close to new applications made after 30 June 1987.
§ Mr. CarlisleI am grateful to my hon. Friend for that reply. Will he extend the scheme in view of the fact that the price of oil is always likely to fluctuate and that we do not have control over it, yet have adequate coal supplies? If we encourage people to use that coal, there will not only be a market for our coal but a very good market for the manufacturing products of engineering enterprises that go in for the coal conversion schemes.
§ Mr. HuntThe scheme has achieved the objectives for which it was set up—to help the coal industry become competitive, to reduce industrial energy costs and to reduce our long-term dependence on oil and gas. I recognise that it is a significant scheme. I am happy to announce that there is still a useful and substantial amount of money available for coal conversions and a useful amount of time left in which to make those applications.