HC Deb 13 May 1991 vol 191 cc7-8
8. Mr. Knox

To ask the Secretary of State for Energy when he next plans to meet the chairman of British Coal to discuss the future ownership of the industry.

Mr. Wakeham

I meet the chairman of British Coal regularly to discuss all aspects of the coal industry.

Mr. Knox

When my right hon. Friend next meets the chairman of British Coal to discuss this matter, will he ensure that the views of the miners and others employed by British Coal are considered? Does he agree that privatisation of British Coal will be successful only if it enjoys the support of the employees?

Mr. Wakeham

I wholly agree with my hon. Friend. It is extremely important that British Coal employees have an opportunity to participate in the privatisation and that they work to make it a success. I know that the chairman of British Coal would want the same.

Mr. Redmond

The House will be aware of a recent drugs find in Colombian coal imports. When the Secretary of State meets the chairman of British Coal, will he discuss possible ways to stop that transpiring and ensure that the industry's morale is sky high and that there is sufficient coal from British mines to meet our energy needs?

Mr. Wakeham

Colombian coal imports and their prices are matters for the European Commission rather than for me. I certainly want British Coal to be able to compete for as many orders as it can get. It will do that if it can deliver the coal at competitive prices and in a proper manner, and if its productivity continues to improve, as it has in previous years.

Mr. Andy Stewart

Does my right hon. Friend agree that British Coal's success will depend not on who owns it but on its efficiency and productivity? For example, the two Nottinghamshire collieries that have led the production league for the past six months are at Welbeck, on an advancing face with 72 tonnes per man shift, and Thoresby, on a retreating face with 157 tonnes per man shift.

Mr. Wakeham

I agree with my hon. Friend. Following my visits to the coal industry, I have been impressed by the spirit, enthusiasm and skill of those in the industry. The coal industry is making good progress with productivity, which is up by over 90 per cent. from pre-strike levels. However, further productivity gains are essential. The industry has the technology, investment and the skills to achieve those.

Mr. Morgan

I compliment the hon. Member for Staffordshire, Moorlands (Mr. Knox) on his moderate question, which was quite unlike the views expressed by Mr. Evans, the Conservative candidate for Monmouth, on any topic mentioned. Will the Secretary of State assure the House that any proposals that he has to privatise the coal industry are not based on the principles that were used to privatise the electricity industry? There were price rises to consumers in south Wales, including Monmouth, of 50 per cent. above inflation and enormous pay rises for the directors of South Wales Electricity of up to 45 per cent., whereas directors of businesses in south Wales, according to a survey in this morning's Western Mail, received pay rises of only 2 or 3 per cent., or even pay cuts. The directors of South Wales Electricity are receiving pay rises of £20,000 to £30,000.

Mr. Wakeham

I assure the hon. Gentleman that I shall not discuss such matters with the chairman of British Coal when I next meet him. If I did so, I should be able to point out that any electricity price rises incurred since the Conservative party has been in office are nothing compared to the 2 per cent. rise every six weeks when the Labour party was in office.