Coal Mining Industry: Productivity and Investment (Hansard, 21 March 1983)

§ Lord Orr-Ewing
My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

§ The Parliamentary Under-Secretary of State, Department of Energy (The Earl of Avon)
My Lords, productivity in the coal mining industry in terms of overall revenue output per man-shift has improved from 2.31 tonnes in the financial year 1979–80 to 2.42 tonnes in the first 48 weeks of the current financial year. This is an improvement of 4.8 per cent. Since May 1979, the National Coal Board has invested an average of some £270 million per year in new underground equipment.

§ Lord Orr-Ewing
My Lords, while thanking my noble friend for that reply, is it not a fact that in the 1974 Plan for Coal it was envisaged that, if this kind of investment was made, productivity was likely to increase by 4 per cent. every year? Is it not rather disappointing therefore, despite this very high investment, that productivity has risen only just over 4 per cent. in ten years?

§ The Earl of Avon
Yes, my Lords, it is disappointing. Improvement in productivity this year over the same period last year was 1.5 per cent., which, I think, is also disappointingly low. This was partly caused by industrial disputes, and we believe it is essential that the industry resumes its past progress.

§ Lord Davies of Leek
My Lords, is the noble Earl aware, when we are uttering the easy phrase, "improvement in production", that in the mining industry we are not dealing with factories, we are dealing with geographical and geological factors over which human beings often have no control? Is he further aware that one of the improving things in the mining industry is that today the average miner at the coal face is 38 years of age, and that we should like to see more men attracted to the industry if we can bring peace and Government understanding to this marvellous industry?

§ The Earl of Avon
My Lords, I am happy to agree with the noble Lord, Lord Davies of Leek, about the youthfulness now of the coalminers, and about his final sentiments. I would say to him that in the 1974 Plan for Coal there were a whole lot of promises made, or undertakings given, on which way it should go; and that one of the sadnesses is that it is productivity which has been lacking.

§ Lord Leatherland
My Lords, may I ask the Minister whether it is not a fact that some seams are being worked out and that that must necessarily reflect itself in the figures of output?

§ The Earl of Avon
My Lords, I think that we must leave the detailed planning to the National Coal Board.

§ Lord Orr-Ewing
My Lords, is it not a fact that the uneconomic and almost worked-out pits sadly reduce the average productivity? Is it therefore not important that the Government should have confidence in the future, continue to invest heavily and, particularly, in the new, viable and highly-automated pits?

§ The Earl of Avon
My Lords, as my noble friend is aware, the Government are investing a considerable amount in the Coal Board, and will continue to do so. We have confidence, too, in the planning of both the present chairman, Mr Siddall, and of his predecessor, the noble Lord, Lord Ezra.

§ Lord Gormley
My Lords, may I thank the noble Lord for asking this Question, for it gives us a chance to ask one or two other questions. I should like to ask a simple question which has been evaded up to now. Have the NUM members honoured the commitment given in the 1974 Plan for Coal? Secondly, in the light of the recent ballot result, would it not make for more secure feelings in the coal mining industry and for more economic sense to conserve our North Sea oil, in view of the fragile price policy, and help the National Coal Board to dispose of its big stocks of coal to industries in Europe—stocks of coal which are costing so much money—and, in this way, help British industry to meet the challenge from exports?

§ The Earl of Avon
My Lords, I welcome the two supplementary questions from the noble Lord, Lord Gormley. Firstly, on the commitment in Plan for Coal by the National Union of Mine Workers, I think I can only underline the point made by my noble friend Lord Orr-Ewing, that in Plan for Coal there was a plan for productivity which could have related to 4 per cent. each year, whereas we have only just reached 4 per cent. over this period. As far as the wider question of relationship between coal and oil is concerned, this is a subject which I believe the House could debate with interest over a long period of time. The only thing I can add to what the noble Lord has said is the fact that at the moment there is a lot of coal around as well, and that we have to rely upon market forces when we come to dispose of it.

§ Lord Strabolgi
My Lords, arising out of what the noble Earl has said about the chairman of the NCB, may I ask him whether any decision has been made 927 about this; and, if so, whether the Government are aware of the importance of choosing someone who is acceptable to all sides of the industry and of the advantage of having a youngish man who would be able to do the job for some years?

§ The Earl of Avon
My Lords, the noble Lord, Lord Strabolgi, will have to wait for an announcement by my right honourable friend in another place, which I gather will be made quite shortly. I am sure he will find that the person chosen will have plenty of years to run and will be a great expert in the profession.

§ Lord Leatherland
My Lords, may I ask the noble Earl whether the Government have received any complaints from the fox hunting fraternity in the Vale of Belvoir, and whether the Government intend to proceed with the coal mining plans that they have in hand?

§ The Earl of Avon
My Lords, as I understand it, my honourable friend in another place in the Department of the Environment made a statement about this last Friday, which will now leave the future planning to the Leicestershire County Council.

Lord Paget of Northampton
My Lords, is the noble Lord aware that coalminers are very keen foxhunters?

§ The Earl of Avon
My Lords, I am not quite sure what hat the noble Lord is wearing.