HL Deb 15 December 1994 vol 559 cc1368-70

3.31 p.m.

Lord Haskel asked Her Majesty's Government:

What are their plans for British Coal Enterprise and in particular whether they will ensure that it will be able to continue funding workshop provision and small business loans beyond March 1995.

The Minister of State, Department of Trade and Industry (Earl Ferrers)

My Lords, the Government and British Coal are currently exploring the different options for the services which are at present provided by British Coal Enterprise. No final decisions have yet been taken.

Funding has been agreed for the company's job placement and training activities until March 1996 and the Government are also considering a request for the funding of its other activities beyond March 1995.

Lord Haskel

My Lords, I thank the Minister for that Answer. Is he aware that it is usual for offers of workshop provision and loans to small businesses to be valid for 90 days? Will discussions be concluded by the end of this month so that further offers can be made, otherwise all the work of British Coal Enterprise will come to a halt at the end of this year?

Earl Ferrers

My Lords, I understand the noble Lord's anxieties. Funding is available until the end of this year. However, the extent of the funding beginning April next year is not yet known. We hope to conclude these discussions as soon as possible but it is important to get the answer right.

Lord Stoddart of Swindon

My Lords, will the Minister assure the House that in the Government's plans for British Coal Enterprise we shall not see the spectacle of the chairman of the board having his salary increased by 75 per cent. one week, while the salaries of the company's lowest paid workers are reduced by 15 per cent. the next? Is he aware that the British public and the staff of British Gas are outraged at what can be described only as social fascism on the part of the British Gas board?

Earl Ferrers

My Lords, the noble Lord, Lord Stoddart of Swindon, vies with his noble friend the noble Lord, Lord Monkswell, for asking the most ridiculous questions. The question has nothing to do with that on the Order Paper.

Lord Stoddart of Swindon

My Lords, the people at British Gas will not think that it is ridiculous.

Lord Peston

My Lords, the question may have nothing to do with the Question on the Order Paper but it is a good question and was deserving of a considered answer from the Minister.

Lord Strathclyde

Out of order!

Lord Peston

My Lords, which part was out of order? I am never out of order because we do not have a concept of "out of order" in your Lordships' House.

I am sure that the Minister will recall that when we were dealing with the Coal Bill there was enormous support for British Coal Enterprise, in particular the argument that it is better for there to be enterprise in the former coalfield communities so that workers will work rather than end up in receipt of any kind of social security benefit. Will the Minister assure us that the Government will bear that in mind when reaching a decision on the future of British Coal Enterprise? Do the Government agree that it is important that there should be enterprises and that that will happen in the near future in an industry that has been extremely successful?

Earl Ferrers

My Lords, I can give the noble Lord the assurances that he requires. He is right in saying that British Coal Enterprise has done a great deal. We are continuing that as regards job training. The matter at issue is what is to be done with the more structural side. We are looking at all the options. There is an argument for saying that there should be partnerships with other regeneration bodies. The fact is that there should be regeneration and we hope that there will be in these areas.

Lord Haskel

My Lords, is the Minister aware that on 26th April the then Minister, the noble Lord, Lord Strathclyde, said that British Coal Enterprise will continue throughout the transitional and immediate post-privatisation period. As a result of that undertaking, will the Minister do all that he can to resolve the uncertainty?

Earl Ferrers

My Lords, the noble Lord is right in saying that that undertaking was given. It is being fulfilled. The nationalisation period ends on 31st December 1994. Our commitment will carry on until then and beyond. I assure the noble Lord that we shall do all that we can to conclude the discussions as soon as possible. However, I repeat that it is important to get it right.