British Coal (Hansard, 25 June 1990)

§ 11. Mr. Patchett
To ask the Secretary of State for Energy when he next proposes to meet the chairman of British Coal to discuss the future of the coal industry.

§ 15. Mr. Hardy
To ask the Secretary of State for Energy when he last met the chairman of British Coal; and what matters were discussed.

§ Mr. Wakeham
I meet the chairman of the British Coal Corporation regularly to discuss all aspects of the coal industry.

§ Mr. Patchett
After meeting the chairman of British Coal, will the Minister be prepared to issue a joint statement with him assuring redundant and retired mineworkers that their concessionary fuel rights will be guaranteed unless they choose another option in future?

§ Mr. Wakeham
I recognise that the hon. Gentleman has raised the matter before with me and certainly with British Coal. It is a matter for British Coal, but I shall certainly ensure that any further representations that he wants to make are put to the chairman of British Coal.

§ Mr. Hardy
Is the Secretary of State aware that currently nods and winks suggest that even if the country had the unlikely misfortune to have a Conservative Government after the next general election, they would not privatise the coal industry? Will the right hon. Gentleman discuss the matter with Lord Haslam and explain to him whether that change of heart is because the Government are to maintain the policy of contraction so that there will be nothing left to privatise, or because wiser counsels have prevailed?

§ Mr. Wakeham
I think that the whole House would wish me to congratulate Sir Robert Haslam on his recent peerage. He has been a distinguished leader of industry for many years and is a distinguished chairman of British Coal. Certainly I discuss many things with Sir Robert Haslam, but he does not seek to interfere with what is essentially a political decision. The Government's position is clear: we intend to bring proposals before the House for the privatisation of British Coal after the next election.

§ Mr. Rost
Does my right hon. Friend agree that the only way to secure a long-term future for the British coal industry is for its prices to be competitive and for it to develop the technologies to burn coal cleanly? Flue gas desulphurisation does not reduce, but increase, greenhouse gases. The development of new technology such as the fluidised bed and coal gasification will alow us to burn coal in the long term and reduce CO₂.

§ Mr. Wakeham
My hon. Friend is absolutely right. In the long term, the development of new clean coal technologies will be the future of the British coal industry into the next century, but in the meantime the considerable improvement in productivity and performance in recent years must be maintained for many years to come.

§ Mr. Holt
When my right hon. Friend speaks to the chairman of British Coal, will he take up with him the matter of dumping waste on the beaches of the north-east of England? It may be cost effective for the coal industry, but it is extremely expensive on the environment and ultimately will have to be cleaned up. Will my right hon. Friend give notice that licensing for such disposal will cease quickly?

§ Mr. Wakeham
I recognise that there are strong feelings about this matter, for which my right hon. Friend the Minister of Agriculture, Fisheries and Food is responsible. I know that he is currently considering it.

§ Mr. Hood
Considering the overrun in the cost of nuclear power at Sizewell B, when the Secretary of State next meets the chairman of British Coal, will he suggest 10 that a fraction of the expenditure on nuclear power should be invested in the Scottish coalfield to reopen the Francis and Monkton Hall collieries? Scottish coal is consumer friendly; it is the green coal of the future. Will he give a lead to the chairman of British Coal by supporting the redevelopment of the Scottish coalfield?

§ Mr. Wakeham
As the hon. Gentleman says, several matters in relation to Scottish coal are encouraging. Scotland has a considerable amount of low-sulphur coal, which is likely to become increasingly valuable, and its quality advantage will provide good opportunities for the future. I was pleased that Monkton Hall and Francis pits were mothballed rather than closed, because it shows that, in the right circumstances, mothballing is a feasible option. I am pleased that British Coal and Scottish Power are close to agreement about coal supplies to Longannet power station. It is not all doom and gloom.

§ Mr. Gow
Is my right hon. Friend aware that most miners now own their homes and wish to be able to own shares in the industry in which they work? Why, therefore, did he say that the Bill to privatise the coal industry will be introduced only after the next election? Will he please introduce it in November? It could be quite a short Bill and it would be welcomed, particularly by miners.

§ Mr. Wakeham
My hon. Friend has a formidable reputation for cutting through red tape and getting to the heart of matters, but the Bill to privatise British Coal will be complex, because under the licensing arrangements in the Coal Industry Nationalisation Act 1946 a privatised British Coal could not retain responsibility for licensing our national reserves.

§ Mr. Barron
When the Secretary of State next meets the chairman of the coal board will he discuss the most urgent matter in the coal industry—its low morale? Will he join Labour Members in supporting the chairman's efforts to win some long-term contracts for supplying electricity generators? Last year, British Coal was offering 10-year contracts to the new generators but it was stopped by the politics of Whitehall. Will he support the efforts of the chairman of the coal board to get talks going immediately to ensure future stability for the British coal industry after these short-term contracts?

§ Mr. Wakeham
In the friendliest possible way, may I say to the hon. Gentleman that part of the cause for the low morale, which is not as widespread as he suggested, may be some of the statements that he and his hon. Friends have made. British Coal secured a three-year contract with the generators which was benefical to both parties. Negotiations for a further long-term contract are continuing and I hope that satisfactory arrangements will be made.