HC Deb 20 November 2003 vol 413 cc944-5
7. Paddy Tipping (Sherwood)

If she will make a statement on the implementation of the large combustion plant directive. [139835]

The Minister for Rural Affairs and Local Environmental Quality (Alun Michael)

We expect to make an announcement about our plans shortly.

Paddy Tipping

Does my right hon. Friend accept that if the national plan approach is taken, there will be serious consequences for the British coal industry, as generators will choose to import low-sulphur coal rather than to retrofit power stations? Will he listen to warnings from the coal industry that up to 15,000 jobs could be at risk, at a cost to the economy of £700 million?

Alun Michael

We are well aware of the concerns of the coal industry, which my hon. Friend is right to point out. For that reason, Lord Whitty has been meeting representatives of all parts of the industry. The decision is not an easy one and must be based on a considered assessment of the costs and benefits to the whole of United Kingdom industry—including the interests to which my hon. Friend referred—of the two options between which we must decide.

Norman Baker (Lewes)

Notwithstanding the point made by the hon. Member for Sherwood (Paddy Tipping), which I understand, is it not important that this significant environmental objective should not have large loopholes that undermine its very purpose? Will the Minister give an assurance that there will not be wide exemptions for older plants that operate below 40 per cent. load, which is quite common these days? Does he understand the importance of ensuring that there is proper inspection of those plants, now and after the directive's implementation? Will he give an assurance that the Environment Agency will have enough inspectors, as he will be aware of the downward trend in the number of inspections that the agency is carrying out?

Alun Michael

The big question concerns the effectiveness of inspection, and the problem with the directive is that, when costs and environmental impact are considered, there is a fine balance between the two approaches. We need to come to a judgment on a number of competing factors, but I can assure the hon. Gentleman that we are taking all those issues into account in reaching our decision.

Mr. Michael Clapham (Barnsley, West and Penistone)

I emphasise the point made by my hon. Friend the Member for Sherwood (Paddy Tipping) that the issue is jobs. As the Minister will be aware, the emission limit value means that there will be a focus on each individual power station, which will then have a stimulus to retrofit, whereas if we go for the national plan, there will be a different approach, and we will find that the generators import low-sulphur coal. The matter is enormously important. Will my right hon. Friend discuss the way forward with his colleagues in the Department of Trade and Industry, because it is important that we get this right; otherwise, the indigenous coal industry could be wiped out?

Alun Michael

I can assure my hon. Friend that the matter is being looked at on a cross-government basis. The decision is one in which the different interests that he refers to are reflected. I assure him, too, that we are in touch with the UK coal industry and the electricity generating industry, to make sure that we fully understand the analysis that they have undertaken and the reasoning that underpins the fears that have been expressed. We will give full weight to those submissions in reaching a decision, but as he will appreciate, it would be wrong of me to anticipate that decision.

Mr. Henry Bellingham (North-West Norfolk)

Will the Minister tell the House the percentage of UK coal used in generation in 1997 and the percentage used this year?

Alun Michael

I cannot give those precise figures, but I will be happy to write to the hon. Gentleman.

Mr. Eric Illsley (Barnsley, Central)

I echo the comments of my hon. Friends the Members for Sherwood (Paddy Tipping) and for Barnsley, West and Penistone (Mr. Clapham). The Minister will probably realise that Hatfield colliery in the constituency of my hon. Friend the Member for Doncaster, North (Mr. Hughes) is, as we speak, under threat of closure, and the Selby collieries have closed this year. If, in implementing the large combustion plant directive, we adopt the national plan, we will see the total eclipse of the British coal industry.

Alun Michael

My hon. Friend refers to the analysis provided to us and the fears that have been expressed, and I repeat to him that the analysis is being fully considered as we reach a decision. We are aware of the difficulty of the decision, finely balanced as it is, and of the need to take into account both industry requirements and environmental considerations in reaching the right conclusion.