§ 18. Mr. Osborneasked the Minister of Fuel and Power what general directions, under the Coal Industry Nationalisation Act, he is considering to stabilise the price of coal since it is not possible to control inflation while coal prices continue to increase because they determine so many other prices such as gas, electricity and transport.
§ Mr. Aubrey JonesThe course of coal prices must of necessity be determined by the trend of production costs, and these are not susceptible to control by Ministerial direction. I have, however, impressed on the National Coal Board the importance of increasing productivity so as to enable any unavoidable cost increases to be absorbed, and it is partly in order to give an impetus to productivity that I have approved the Board's revised and extended development plans.
§ 19. Mr. Goughasked the Minister of Fuel and Power whether he is aware of the unfairness caused by the price-zoning system for retail sales of coal and coke, particularly in regard to Phurnacite; and 30W if he is now prepared to replace this by a more equitable system.
§ Mr. Aubrey JonesSo long as price control has to continue, some system of price zoning in which transport charges are averaged over a zone is essential and must involve price differences on either side of zone boundaries. The alternative to price zoning would be such a multiplicity of controlled prices as to render price control unworkable.
The present system of price zoning is among the matters under review by the Robson Committee. Subject to the findings of the Committee, I have no reason to believe that the zones are not as fair as it is practicable to make them.