HC Deb 07 June 1978 vol 951 cc159-61W
Mr. Dempsey

asked the Secretary of State for Energy if he will make a statement about the meeting on 30th May of the Council of Ministers (Energy) of the European Community.

Mr. Benn

The Council of Ministers (Energy) met on 30th May. Discussion concentrated on a package proposed by the Presidency consisting of:

  1. (a) agreement in principle to a scheme to aid intra-Community trade in power station coal and to review the existing scheme of aid for coking coal;
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  2. (b) a resolution on Community refinery policy;
  3. (c) a regulation to provide Community financial aid for demonstration projects in energy saving;
  4. (d) a framework regulation to provide Community financial aid for demonstration projects in alternative energies and implementing regulations for its application in the fields of solid fuel liquefaction and gasification and of geothermal energy;
  5. (e) a regulation to provide Community aid for certain hydrocarbon exploration projects.

The Council also had a general discussion on nuclear questions and considered a statement of Community energy policy objectives for 1985.

The Council agreed on the regulation on demonstration projects in energy saving and on the framework regulation on demonstration projects in alternative energies. These regulations will not, however, come into force until the Council has adopted regulations setting financial limits for the aid to be given under each scheme and until the first project under each scheme has been approved. The Council will consider these matters further at its meeting in December. No agreement was reached on other items.

I made clear that we attached great importance to effective measures to aid intra-Community trade in power station coal and that I was deeply disappointed by the lack of progress here. I recognised that the refinery industry in certain Community countries faces difficult problems. In general, it was for the industry, in consultation with national Governments and the trade unions representing refinery workers, to tackle these problems but there were some areas, such as the import of refined petroleum products, where the possibility of Community action could usefully be studied. The Italian delegation was, however, unable to agree to proposals on either coal or refineries except on the basis of far-reaching proposals to aid the Italian refinery industry which were unacceptable to all other member States.

I shall continue to work for progress on Community energy policy in a way consistent with our vital national interests. Such a policy, to be serious, will need to include as a central feature effective measures to utilise the Community's massive resources of coal for the common benefit. I shall also continue to work to improve the Councils procedures with a view to securing stronger political direction over, and more open discussion of, energy policy questions. Above all, we must be free to control our oil policy on the same basis as at present, and I made this crystal clear to my colleagues and to Dr. Brunner.

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