HC Deb 22 March 1977 vol 928 cc472-3W
Mr. Sillars

asked the Secretary of State for Energy from which source the £35 million additional aid to the Scottish coal industry is to be drawn as announced at Perth on 12th March; what is the global sum available during the five-year period to the United Kingdom coal industry; and what is the share allocation for England and Wales, respectively.

Mr. Eadie

Subject to enactment of the Coal Industry Bill, the assistance will be provided under Clause 2 and, possibly, Clause 8 of the Bill. The financial limits in Clauses 5 and 8 of the Bill specify maximum sums totalling £275 million for grants which may be made under the powers in Clauses 2, 3, 4 and 8 of the Bill covering the next five years. No allocation as between England, Scotland and Wales is proposed.

Mr. Sillars

asked the Secretary of State for Energy what Government assistance is to be given to the National Coal Board for new sinkings and new developments over the next five years; and how much is earmarked for the Scottish, English and Welsh coalfields, respectively.

Mr. Eadie

The sums to be made available to the National Coal Board are to enable the Board and the South of Scotland Electricity Board to conclude a coal supply agreement. Such an agreement will establish a basis on which the National Coal Board can take decisions about further investment in the Scottish coalfield. No direct Government assistance for new investment is envisaged; but the Coal Industry Bill provides for an increase in the borrowing powers of the National Coal Board to enable the Board to continue with "Plan for Coal" investment.

Mr. Sillars

asked the Secretary of State for Energy if the £35 million assistance for the Scottish coal industry, which he announced in Perth on 12th March, represents resources additional to those provided for in the Coal Industry Bill now before Parliament.

Mr. Eadie

No. As will be clear from my answer to the hon. Member's related Question, the funds for the assistance will count against the financial limits in the Coal Industry Bill.