§ Mr. Canavanasked the Secretary of State for Energy what steps the Government are taking to help the National Coal Board and the South of Scotland Electricity Board to reach agreement on supply of coal.
§ Mr. EadieThe National Coal Board and the South of Scotland Electricity Board have for some time been endeavouring to reach agreement on a contract for supply of coal to Scottish power stations. This would replace the present contract for supply of coal to the Longannet power station. The matter was discussed last year at a meeting of a working party drawn from the Scottish coal and electricity industries, chaired by my right hon. Friend the Secretary of State for Scotland. In subsequent discussions with the Government, the two Boards moved closer together, but a substantial gap on price remained. The Government have now decided to make £7 million a year available for five years to enable the two boards to enter into an agreement for the supply of coal to Scottish power stations over a five-year period.