HC Deb 16 July 1998 vol 316 cc562-4
7. Mr. James Gray (North Wiltshire)

What assessment she has made of the implications of her energy policy for employment in the coal industry over the next three years. [49378]

The Minister for Science, Energy and Industry (Mr. John Battle)

Purchasing and sourcing coal are commercial decisions for the coal-fired generators. Obviously, it is up to the coal industry itself to respond to market opportunities. Our task as a Government is to ensure a level playing field and fair market conditions for competition in coal. That is exactly what we are now delivering.

Mr. Gray

I am grateful to the Minister for that answer, but does he agree that one of the greatest threats facing the coal mining industry comes from cheap imports of coal? Will he tell us what he has done to speak to the German and the Spanish Governments in particular to stop their unfair subsidies to their coal mining industries?

Mr. Battle

Yes. We have supported the claims of companies that have protested about unfair imports, whether from Germany or elsewhere, through the European Commission. That is rather more than the previous Administration did. The hon. Gentleman talks about threats to the coal industry; I think that the previous Government was the greatest threat to the coal industry.

Mr. Dennis Skinner (Bolsover)

Is my hon. Friend aware that one of the reasons for his having to deal with the remnants of the coal industry—a maximum of 24 deep-mined pits—is what happened during those past 18 years, especially since 1992, when the previous Government, for the first time ever, actually closed pits themselves? Is my hon. Friend aware that, as a result of the closures made by the previous Secretary of State—who now sits somewhere on the Back Benches, when he turns up; he must be on some sort of productivity drive—there are still pit villages with more than 30 per cent. unemployment? The only way in which we can deal with that problem is to ensure that we keep those 20-odd pits working. We must also ensure that, in the process, we do not stuff the pockets of Mr. Richard Budge, who had his pockets filled by the previous Tory Government, when they handed over the remnants of the coal industry.

Mr. Battle

We have no intention of stuffing anybody's pockets. We inherited a deeply flawed market for power generation. We have tackled that flawed structure and proposed a programme to reform it, which is out for consultation. That reform will ensure that there is a genuinely fair market for coal. To be fair to the coalfield communities, they asked us not for favours, but for fairness. We are delivering that fairness and it will ensure that there is a place for coal in the market. Where communities have suffered as a result of policies in the past, our actions such as those in respect of the task force on regeneration, to which my hon. Friend the Minister for Competition and Consumer Affairs referred, should make some practical, positive contribution.

Mr. Tim Boswell (Daventry)

We have some sympathy with the Minister and the Department for having the coal deal fixed for them by the Paymaster General. Now that the Minister has had a month to reflect on the deal, will he tell the House whether the proposals in that consultation document will affect the mining of one additional tonne of coal? If so, what will be the implications for the Government's Kyoto and domestic emissions targets?

Mr. Battle

One week, Opposition Members are in favour of public spending; the next week, they are against it. One week, they are against the coal industry; the next week, they are in favour of it. We inherited from the hon. Gentleman's Government, who privatised the coal industry and the whole of the energy sector, a deeply flawed market which was not working.

What have this Government done? We have undertaken a review of energy sources for power generation to ensure that we shall have secure supplies in the future—which is paramount—rather than managing supplies day by day. We have asked the Director General of Electricity Supply to examine the energy-buying market for power stations. We have found that the market was rigged against coal by the previous Administration. We have also introduced a review of utility regulation because the framework that we inherited for consumer regulation was deeply flawed and rickety. In all that work, we shall ensure that there is fair competition in energy policy, that there is room for coal in the market and that it is not unfairly squeezed out as the previous Administration intended.

Mr. Kevin Barron (Rother Valley)

I thank my hon. Friend for all the work that he has done in his ministerial position over the past 12 months to achieve a fair market for coal. We have never asked for anything other than a level playing field. Last May, our Government inherited a market that was rigged against the coal industry as a result of political decisions taken by the previous Government. Those coal miners who are left are thanking God that we have a Government who want to restore fairness. My hon. Friend should take no notice of Opposition Members who talk about coal miners' jobs, because they got rid of thousands of jobs in my constituency in a short period.

Mr. Battle

I am grateful to my hon. Friend and other hon. Friends who made representations on this matter. The new energy markets are incredibly complex. We accept that, but we have calmly and quietly injected a dose of common sense into the debate. It is important that we consult, not the Conservative party, but industry and people working in the sector so that their views are considered. We can then make proposals for long-term sustainability to ensure that we shall have diverse, secure supplies at competitive prices well into the next century.