Pit Closures (Hansard, 17 March 1993)

§ 7. Mr. Hinchliffe
To ask the President of the Board of Trade when he last met representatives of the engineering industry to discuss the implications of the pit closure programme.

§ The Minister for Energy (Mr. Tim Eggar)
I and officials in the Department have had regular contact with the mining engineering industry in the context of possible changes in the requirement for mining equipment and machinery. I shall be meeting representatives again as soon as practical after the White Paper is published to have further discussions on specific proposals for helping the industry.

§ Mr. Hinchliffe
The Minister will recall that I have raised with him on a number of occasions the specific problems facing the mining engineering sector in Wakefield in my constituency. Is he aware that the current proposal for the Swedish company, ABB, to build a green power station in the Wakefield district would offer hope for the future of the three remaining pits in the Wakefield district and the mining engineering sector in my constituency and elsewhere? Can he offer Government support for that project in view of its importance, particularly in the light of the major difficulties facing the Wakefield region as a result of the Government's energy policies?

§ Mr. Eggar
I was aware of the ABB proposals and other proposals in the district. They are being considered in the context of the White Paper review.

§ Dr. Michael Clark
Does my hon. Friend recognise that, due to our historic and successful coal industry, we have many companies which, in engineering terms, are market leaders in coal technology, particularly clean coal technology for power stations, long-wall mining, hydraulic supports and underground conveyor systems? Does he recognise that, if the coal industry is to contract and the home base to diminish, it will he harder for such companies to trade abroad and export? Therefore, will he undertake to give whatever help and assistance his Department can to those companies so that they may stay in business, export and help our balance of payments?

§ Mr. Eggar
The answer is yes, yes and yes.

§ Mr. Orme
Is the Minister aware that representations were made to the Select Committee on Trade and Industry on the very points just raised by the hon. Member for 275 Rochford (Dr. Clark)? When will the Government issue the White Paper as its delay is having a disastrous effect on the mining industry?

§ Mr. Eggar
My right hon. Friend the President of the Board of Trade addressed that issue in answer to earlier questions. We are aware of the need to proceed as rapidly as possible, but we cannot proceed until we have finished the difficult negotiating process—in particular until contracts have been concluded for the supply of coal to the generating industry. There are no contracts currently available and if contracts are not in place by 31 March, theoretically no coal can be supplied by British Coal to the generators.

§ Mr. Riddick
Does my hon. Friend agree that Mr. Arthur Scargill and his fellow members of the National Union of Mineworkers executive must be out of their tiny minds to recommend strike action to their members now? Does he agree that such action will do nothing to help the mining equipment industry and will confirm in the minds of some people working in the power generation industry the need for a diversity of supply? Has not Mr. Scargill shot himself in the foot once again?

§ Mr. Eggar
My hon. Friend addresses a serious issue. If the country feels that there should be support for the coal mining industry, that industry and the miners must earn that support. The result of what Mr. Scargill has said has been to reduce the confidence that coal can be relied on as a secure source of power generation, which cannot be in the interests of the miners and cannot promote coal as one of a diverse range of sources of electricity generation.

Mr. O'Neill
Is the Minister aware that any contraction of the coal industry will, as my hon. Friends have pointed out, have an impact right across British engineering and, in turn, have a great effect on those existing on unemployment benefit? Is he further aware that, according to the Institute of Fiscal Studies, the effect of the introduction or VAT on domestic fuel will be three times as harsh on the poorest families, many more of whom will be unemployed as a result of his dithering over the coal industry? Will he take steps to ensure that families who will be unemployed for a long time to come are protected against the worst excesses of yesterday's announcement of VAT on domestic fuel charges?

§ Mr. Eggar
The hon. Gentleman talks about jobs and, in particular, about the mining industry. He surely now understands that to save jobs in the mining industry and to increase electricity generation by the use of coal can only be at the cost of the loss of jobs in the gas-related industries, in the nuclear industry or in some other area. He must stop peddling the idea, or trying to get across the point, that it is somehow possible to expand jobs in the coal industry without any costs being incurred elsewhere in the economy. That is not reality; he knows it and the Select Committee recognised that to be the case.

§ Mr. Clifton-Brown
Does my hon. Friend recognise that as we are to have a substantial coal-burning energy policy, it is essential that it is backed by proper research? The Coal Research Establishment is in my constituency. Will my hon. Friend congratulate that body on having just won major contracts in Taiwan and Kazakhstan, and it is about 276 to be awarded a third major contract? Will he also congratulate that establishment for doing a thoroughly good job in the research work that it undertakes?

§ Mr. Eggar
I am grateful to my hon. Friend for bringing a delegation from the CRE to see me earlier this week. I was impressed by the success that it has had in gaining contracts internationally. My right hon. Friend and I will of course take into account the points that my hon. Friend and the delegation made when we produce our White Paper.