HC Deb 04 November 1974 vol 880 cc41-2W
Mr. English

asked the Secretary of State for Energy if he has any further statement to make about the tripartite examination of the coal industry.

Mr. Varley

Yes, my hon. Friend will recall that the interim report of this examination was published in June. The final report is being published today. Copies are available in the Vote Office and in the Library. I am grateful to all those who took part in this important review of the coal industry.

The general conclusions of the final report are as follows: Events since the publication of our Interim Report reinforce our conviction that an efficient competitive coal industry has an assured long-term future. The NCBs Plan for Coal has our full support as a general strategy involving as it does expansion and new developments wherever they are feasible, including the proposed exploitation of Selby and the expansion of opencast production. To enable the required level of output to be reached as rapidly as possible and sustained, the industry will need both to overcome a number of technical and industrial constraints which at present impede existing collieries from achieving their true potential, and in addition to ensure that the whole of its projected new capacity is brought into full production efficiently and on time, subject to the normal planning procedures. To facilitate the new mining developments, the Government intend to introduce legislation to give the NCB access to coal subject to "retained copyhold" interests and to restore the power to make compulsory rights orders to promote the expansion of opencast coal production. This legislation will not impair the normal planning procedures for securing that full weight is given to environmental considerations. We welcome the establishment of a financial framework for the industry which will give it the objective of long term competitiveness while covering its costs of production and contributing towards financing the new investment programme, but at the same time recognising the special burdens of the past, the need to provide safeguards against short term fluctuations in the price of competing fuels, and the need to take appropriate action if other public policies prevent commercial pricing or impose exceptional burdens on the Board. We welcome the new scheme for compensation for pneumoconiosis sufferers which has been worked out between the NCB and the Unions and the Government's intention to make a substantial contribution. We are glad to note that progress has been made in working out improved pension arrangements in the industry and that the Government is prepared to assist in meeting the existing deficiency in the Mineworkers' Pension Scheme. We again emphasise the importance of a sound and effective production incentive scheme and we trust that the current discussions between the NCB and the NUM will soon be successful and lead to a substantial increase in output. We have studied proposals for research and development work into new uses of coal and recommend Government assistance for projects which offer good prospects for the long-term future of the industry.

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