Coal Mines (Hansard, 27 January 1992)

§ 4. Mr. Mullin
To ask the Secretary of State for Energy how many pits were open in (a) January 1986 and (b) January 1992.

§ The Parliamentary Under-Secretary of State for Energy (Mr. David Heathcoat-Amory)
British Coal had 133 producing collieries in operation at the beginning of the financial year 1986–87, which produced 88 million tonnes of coal. There are currently 53 collieries in operation, which are expected to produce 68 million tonnes this financial year.

§ Mr. Mullin
Does the Secretary of State recall the letter sent by Mr. Ian MacGregor, the former chairman of the coal board, to every miner in June 1984, which described as "absolutely untrue" the claim by mine union leaders that the Government planned to reduce the number of working pits to under 100? The letter said: I state categorically and solemnly that you have been misled. Was Mr. MacGregor lying, or did he not know? Should not the Minister give mineworkers an apology?

§ Mr. Heathcoat-Amory
The chairman of the coal board made a fair assessment of market conditions at that time. The hon. Gentleman will know that the British coal industry must respond to a competitive environment. The best way to secure future jobs and future collieries is to win the largest possible share of the electricity-generation market, and the contracts are to be renewed next year.

§ Mr. Butler
Would any of the pits that have been closed still be open but for unfair competition from Germany? Why are the Germans allowed to subsidise their coal production so much?

§ Mr. Heathcoat-Amory
The European Commission is in dispute with the German Government over the level of their production subsidies, but I assure my hon. Friend 688 that imports from Germany are minimal and that the real competition for the British coal mining industry comes from other fuels.

§ Mr. Eadie
Is the hon. Gentleman not aware that the miners of this country feel betrayed by the Government? Is he aware that they posed me the question, "Is anybody in the Government prepared to stand up and fight to defend the coal industry?" Is he further aware that they feel that the chairman of British Coal acts as if he is a clone of the Government?

§ Mr. Heathcoat-Amory
I am by no means gloomy about the prospects for British Coal, but its future success and security depend on its becoming more competitive and productive so that it can secure a large part of the British energy market in years ahead. That can be delivered by the industry, rather than by the words of politicians.

§ Mr. Janman
Does my hon. Friend agree that it would be wrong to keep uneconomic pits open by trying to protect them from competition from imported coal? Does he agree that it would be totally wrong to start imposing levies or some form of import quota on coal coming into Britain, partly because that would jeopardise hundreds of jobs in the electricity industry, notably at two power stations in my constituency?

§ Mr. Heathcoat-Amory
My hon. Friend makes several fair and valid points. If we were to force the electricity-generating companies to take coal in volumes and at prices that they do not want, the certain consequence would be higher electricity prices for the domestic customer and for the rest of British industry, which could in turn be bad for long-term job prospects.

§ Mr. Dobson
Will the Minister tell us why the Government insist on making British miners redundant when they work in the most efficient collieries in western Europe? Can he name any other industry in Britain that is twice as efficient as its west German counterpart, but which, nevertheless, is suffering from job losses? Finally, why will the Government not allow the extra European funds to be spent in the coalfields to make up for the jobs that have been lost? Is it not true that the Government want to divert that money to keep down the poll tax in Wandsworth and Westminster?

§ Mr. Heathcoat-Amory
On European Community funds, I regret that Commissioner Millan is not releasing the RECHAR money, which we could well use in areas affected by colliery closures. I remind the hon. Gentleman that since the Government took office all the redundancies in the British coal industry have been voluntary and that the terms offered to miners affected are among the most generous in British industry and can reach £37,000 per man affected.