Coal Imports

HC Deb 07 November 1988 vol 140 cc9-10

8. Mr. Cran

To ask the Secretary of State for Energy if he will take steps to ensure that no import quotas are imposed on foreign coal following the privatisation of the domestic coal industry.

Mr. Michael Spicer

The Government place no restrictions on imports of coal and have no intention of introducing any. As British Coal continues to improve its efficiency we believe that it will remain the supplier of choice for most purchases.

Mr. Cran

Is my hon. Friend aware that more than 300 jobs in my constituency will be lost by an intensive energy user called Capper Pass? It attributes many reasons to that, including the fact that electricity prices are too high. Does my hon. Friend agree that that should not recur with the privatisation of coal and electricity because of the downward effect on prices which those events will have?

Mr. Spicer

I certainly agree that under a privatised electricity industry the pressure on costs through competition will make prices lower than under a nationalised industry. It has always been the Government's position that a privatised electricity industry could buy its coal in the best market. As I have said, we are confident that with the continued efficiency improvements in British Coal it will be the supplier of first choice.

Mr. Barron

If coal imports increase and threaten indigenous production, will the Government take action to ensure that our national interests are always looked after?

Mr. Spicer

What are the national interests? The hon. Gentleman will surely know that a reason why there has been a marginal increase in coal imports—to nearly 10 per cent.—is that under this Government we have had a successful steel industry which has been importing large amounts of coking coal, which this country cannot supply. Therefore, let us consider exactly what is the national interest.

Mr. Oppenheim

Is it not about time that British Coal lost its virtual monopoly of coal reserves? Surely it is not healthy for a big centralised organisation to have a monopoly, as British Coal does, especially when it comes to the opencast sector, where British Coal insists on operating only large, environmentally damaging, opencast sites rather than smaller, more environmentally sensitive ones?

Mr. Spicer

As my right hon. Friend said, the whole question of licensing rights and the ownership of reserves is a central matter to be addressed when we come to privatise the industry.