Major Robertsasked the Minister of Fuel and Power, what is the total amount of capital outlay expended by the Government and Department of Opencast Production since 1941 to 31st December, 1946, for opencast mining; what is the future estimate for capital expenditure for the next two years for opencast mining; and what rate of depreciation has been allowed per year.
§ Mr. ShinwellCapital expenditure from 1941 to 30th September, 1946 (the latest date for which figures are available) amounted to £3,500,000 on Services: purchases of Plant (omitting supplies received under Lend/Lease) amounted to £860,000. It is estimated that by the end of September, 1948, these figures will have increased by £750,000 and £150,000 respectively. Depreciation has been written off on differing cases. Broadly speaking about me-third of the capital cost is written off annually.
Major Robertsasked the Minister of Fuel and Power how much of the machinery purchased and/or loaned by the Government for opencast coalmining since 1941 is at the moment not in normal active use on sites
§ Mr. ShinwellOn 28th January, 1947, the latest date for which figures are available, about go excavating machines of a total of some 230 owned by the Government for opencast coal mining were out of service for overhaul. A considerable proportion of the repairs would be minor repairs involving the machine being out of use only for a few days.
Major Robertsasked the Minister of Fuel and Power, what is the average individual cost per ton sold for the 12 months ended March, 1946, of opencast coal, for the removal of over burden, for the pro- 105W duction of the coal, for the restoration of the land, for reserves for future restoration, for reserves for compensation, for winter bonus, for depreciation of machinery belonging to the Government, for interest on borrowed money and for welfare, and what is the total average cost per ton sold all these items over the same period.
§ Mr. ShinwellCost records are related to tonnage produced and not to tonnage sold. The average individual cost per ton for opencast coal produced in the year ended 31 March, 1946, is estimated at 31s. 2d. for removal and replacement of topsoil and overburden, extraction of the coal, and any related welfare costs, and at is. 4d. for compensation and royalties (including where required expenditure on cultivation, fertilisers, seeds, etc.) Depreciation of Government owned plant (including machine received under Lend/Lease) is estimated to have been equivalent to 5s. 6d. a ton. The total cost per ton of the production of coal, including the above items together with such items as transport to Disposal Point, screening and establishment charges is estimated for the year in question to have amounted to 49s. 9d. a ton No winter bonus was paid.
§ Mr. Asshetonasked the Minister of Fuel and Power what is the present average cost of production per ton of opencast coal.
§ Mr. Shinwellthe average cost producing opencast coal for the six months ended 3oth September, 1946, was 27s. 10d. a ton. This includes the removal and replacement of topsoil and overburden and the extraction of the coal. In addition expenditure in respect of prospecting, royalties and compensation, operation of screening and loading plants and stocking grounds, maintenance and amortisation of cost of plant, and establishment charges, is estimated to amount, during the same period, to approximately 16s. 3d a ton
§ Mr. Asshetonasked the Minister of Fuel and Power what is the highest price per ton paid by his Department for opencast coal during the last financial year.
§ Mr. ShinwellPayments made during the course of producing opencast coal are usually subject to adjustment later, and those made luring one financial year include adjustments in respect of work done in previous years. In some cases also sites are abandoned on account of dis-106W appointing conditions and consequent rising costs. The highest production tender accepted in the financial year ended 31st March, 1946, was 44s. 10½. a ton.
§ Mr. Asshetonasked the Minister of Fuel and Power what was the average cost per ton of producing opencast coal during the last three financial years.
§ Mr. ShinwellThe average cost of production per ton of opencast coal was: for the period November, 1941 to 31st March, 1944, 27s. 3d.; for the year ended 31st March, 1945, 30s. 1d.; for the year ended 31st March, 1946, 31s. 2d. These costs are comparable with the figure of 27s. 10d. for the six months to 30th September last, which I have furnished to the hon. Member in reply to an earlier Question.