British Coal (Hansard, 13 May 1991)

§ 11. Mrs. Heal
To ask the Secretary of State for Energy when he last met the chairman of British Coal to discuss the future coal supplies to power stations in the midlands region.

§ Mr. Heathcoat-Amory
My right hon. Friend and I meet the chairman of British Coal regularly to discuss all aspects of the industry.

§ Mrs. Heal
Does the Minister agree that the short-sighted policy of the rundown of coal production in the west midlands region has gone so far that it even endangers the future of the power stations in that district? What guarantees will he give that no power stations in the west midlands will be closed, other than Meaford and Ham Hall, whose closure has already been announced?

§ Mr. Heathcoat-Amory
As the hon. Lady knows, three-year transitional contracts give security of volume and price so that the coal industry can adjust to the new market in energy. The future size of the industry depends on the future size of the market, so it is up to British Coal and all who work in it to create a reputation as a secure and economic supplier of indigenous energy to the electricity supply market. Substantial progress has been made since 1985.

§ Mr. Dickens
When my hon. Friend next meets the chairman of British Coal to discuss coal supplies to midlands power stations, will he impress on him that as long as miners' jobs and pension funds are secure, it matters not whether coal mines are in state ownership or private ownership? There is no doubt that what the coal mining industry needs for survival is capital input. If businesses—whether Shell or the power companies—put money into the mining industry it will fight off competition from abroad. Does my hon. Friend agree?

§ Mr. Heathcoat-Amory
Yes. Coal produced by good British pits can compete with coal imported from anywhere. My hon. Friend makes a good point—that the challenges facing the coal industry will be the same, whether it is in public or private ownership.

§ Mr. Skinner
Does the Minister accept that productivity in the midlands, west and east has increased at a remarkable rate over the past few years? Following the question of the hon. Member for Staffordshire, Moorlands (Mr. Knox), may I put it to the Minister that when the future shape of the industry is being decided it would not be a bad idea if, following discussions with British Coal, the Secretary of State for Energy were to organise a ballot of the workers in the industry so that he might have their view on privatisation before the general election? There would probably be a very clear result against privatisation.

§ Mr. Heathcoat-Amory
I happily acknowledge that the industry has greatly improved its productivity in recent years, albeit from a very low base. Only high productivity can bring security to the industry in the long term. As regards the holding of a ballot, I need say only that we shall be having a general election and that that will show whether people think that the future of the coal industry should be put into private hands.