Coal-fired Power Stations (Hansard, 9 March 1987)

§ 11. . Mr. Grylls
asked the Secretary of State for Energy when he next expects to meet the chairman of the Central Electricity Generating Board to discuss the ordering of new coal-fired power stations.

§ 13. . Mr. Beith
asked the Secretary of State for Energy what recent discussions he has had with the chairman of the Central Electricity Generating Board about the ordering of coal-fired power stations.

§ Mr. Peter Walker
I meet the chairman regularly and we discuss a wide range of issues. Applications for consent to the construction of power stations are a matter for the CEGB, and I have received no application in respect of a coal-fired station.

§ Mr. Grylls
Does my right hon. Friend agree that unless orders for new power stations are placed quite soon there will inevitably be more redundancies in the power construction industry? Does he accept that that could be very serious, because it could damage one of our most successful industries not only in its capacity for building power stations in Britain, but all over the world?

§ Mr. Walker
My hon. Friend is well aware of the way in which the Government have given quite considerable assistance to the industry in obtaining overseas orders. He will also be aware of the manner in which we have 12 organised credit facilities and so on for power station projects on a considerable scale. My Department has done all in its power to obtain those overseas orders. My hon. Friend will also understand that, as the CEGB applies to me to meet its capacity needs for the future, these matters will be quickly and carefully considered, as I have already said.

§ Mr. Beith
Is it not a matter of serious concern to the Secretary of State that the CEGB should not have submitted applications for coal-fired power stations to him? Does he not recognise that that was part of the strategy to get Sizewell through? Will he not now recognise that his overall responsibilities for energy require him to ensure that we have investment in coal-fired power station building quickly because that would be of immense importance to industry in the north of England?

§ Mr. Walker
The hon. Gentleman should be more objective in his study of capacity needs. It is not true that capacity needs will not be met at present. Quite reasonably, before deciding on its overall strategy, the CEGB should know whether the availability of nuclear power stations is part of that strategy. That is a perfectly reasonable decision to take. The CEGB has not delayed decisions so that there will be a lack of capacity. Therefore, I do not agree with any suggestion that it has done that.

§ Sir Trevor Skeet
Is the Secretary of State aware that one of the difficulties in ordering a coal-fired power station before the 1990s is the technical problem of getting rid of nitrous oxide, which is a real problem in the industry?

§ Mr. Walker
It is a problem, but it can be tackled.

§ Mr. Skinner
If the Government wish to improve the manufacturing base, would it not be sensible to start to build a coal-fired power station immediately and to follow it with another? Does the Secretary of State accept that a coal-fired power station, or stations, should be built adjacent to the coalfields and that he should make an early start by siting one in the north midlands and south Yorkshire area as quickly as possible to provide some jobs?

§ Mr. Walker
It is important that the CEGB should decide how best to meet its capacity needs, and in terms of employment those needs must he dealt with efficiently and effectively. The improvement in the productivity of the coal industry will considerably assist it in making people believe that it deserves the orders that it requires. The industrial dispute which the hon. Gentleman supported so enthusiastically considerably damaged the coal industry.

§ Mr. Favell
Does my right hon. Friend agree that not only are coal-fired power stations important to British manufacturing industry but that civil nuclear power stations are important, especially to the north-west and to William Fairey, which he will visit next week? Has my right hon. Friend read the report in The Sunday Times yesterday? Will he confirm that he will not be bullied by the French and other EC members, but will continue to support British manufacturing industry?

§ Mr. Walker
As for the report in The Sunday Times, as far as I am aware, no official complaint of any description has been made by the Commissioners of the European Community, so I cannot comment on the issue. The 13 Labour party's decision to eradicate the nuclear power industry during the next 20 years will be disastrous for jobs, especially in the north-east and the north-west.