HC Deb 26 February 1990 vol 168 cc11-2
19. Mr. Skinner

To ask the Secretary of State for Energy what meetings he has had with the officers of the Union of Democratic Mineworkers; and what matters were discussed.

Mr. Wakeham

I have met the president of the Union of Democratic Mineworkers and we discussed a number of issues affecting the coal industry.

Mr. Skinner

Will the Secretary of State confirm that, at that meeting, the leaders of the UDM and the right hon. Gentleman discussed the possibility that if the Tories were re-elected they would introduce privatisation arrangements for British Coal and money would be laundered to the UDM not only to set up companies in advance to buy into British Coal but to use taxpayers' money in the form of actual cash or of departmental expertise? Given the press comments to that effect, is the right hon. Gentleman prepared to tell the House that no taxpayers' money has been handed over in any form to the UDM and will not be handed over in the event of privatisation?

Mr. Wakeham

I know of no taxpayers' money that has been handed over to the UDM. The hon. Gentleman is wrong if he thinks that he knows what went on at my meeting with the president of the UDM. It was a very interesting meeting and I told him about the Government's position on coal privatisation. For the hon. Gentleman's benefit, I will repeat what I said. I said that the Government were committed to privatising the coal industry in the next Parliament but had not determined the best way for that to be done. I said that I would welcome the president's suggestions of what he thought would be the best way for it to be done and I await his suggestions in due course.

Mr. Andy Stewart

When my right hon. Friend met the president of the Union of Democratic Mineworkers, did he discuss the fact that as British Coal is the largest power supply user in the country —the environmentally friendly mini-power station at Bilsthorpe —will be subject to the nuclear levy?

Mr. Wakeham

Negotiations about that power station are still in progress. The levy is paid by consumers of electricity and not by power stations and is based on an order that has been presented to the House.

Mr. Eadie

When the right hon. Gentleman met officials of the UDM, was he candid and frank with them? Did he tell them that if the Government continue to pursue their policies there will be a correspondingly large contraction of coal mining in the Nottinghamshire area as he has already intimated that the Government propose to give the go-ahead to the import of low-sulphur coal and as desulphurisation has a lower priority on his Department's agenda?

Mr. Wakeham

I do not think that that matter was raised when I spoke to the president of the UDM. Had it been raised, I should have confirmed that the Government are fully committed to the European directive, so there has been no change in that policy. I should also have mentioned that, in accordance with the policies of our predecessors, the Government do not seek to restrict the importation of coal.

I said to the president that the future place of British Coal in our economy depends on its ability to be the supplier of choice for the generating industry. I believe that an efficient British Coal will still maintain a substantial share of the generating industry's fuel requirements, and I hope that the industry will respond to the challenge before it.