§ Mr. Concannonasked the Secretary of State for Industry (1) to what factors the Government attribute the low take-up of the coal-firing conversion scheme;
(2) if he will make a statement on the value to coal-firing conversions of the European Coal and Steel Community loan scheme; and if Her Majesty's Government will consider extending their own scheme in order that more use might be made of European Coal and Steel Community funds;
(3) what information Her Majesty's Government have on successful coal-firing conversion schemes operating abroad, especially in western Europe or the United States of America;
(4) on how many projects payments have been made under the coal-firing conversion scheme; what level of payment has actually been made; and what level of payment will finally be made on projects for which payments have begun;
(5) how the costs of accepted offers and costs of payments made compares with the level of funds earmarked for the coal-firing conversion scheme;
(6) how many applications have been submitted under the coal-firing conversion scheme; what have been the associated project costs; how many offers have been (a) made and (b) accepted under the scheme; and what have been their associated costs;
(7) if he will increase the level of grant for the coal-firing conversion scheme.
§ Mr. MacGregorBy 31 March, 386 applications for grant assistance had been received under the coal firing scheme for projects involving £256 million costs. 50 applications involving £62 million costs had been rejected or withdrawn. 200 offers had been made for grant totalling almost £17 million of which 124 for £12 million grant have been accepted and 20 for £2 million grant declined by applicants.
Fifty-seven payments have so far been made for grant totalling £1.8 million. The level of payment that will finally be made on projects for which payments have begun is difficult to forecast at this stage but, on some projects, experience with other grant schemes suggests that the total amounts claimed may eventually be slightly below the level of grant offered.
A sum of £50 million has been allocated to the coal firing scheme and the costs of accepted grant offers and 156W costs of payments made currently represent 24 per cent. and 3.6 per cent. of that total respectively, although this takes no account of the 136 applications still under consideration.
The large number of applications received this year implies that the take-up will be significant. In view of the success of the scheme, there is no need to increase the level of grant. The loans for coal firing available from the European Coal and Steel Community on which the Government offer exchange risk cover under the exchange risk guarantee scheme have been an important extra incentive to some companies to bring forward coal firing projects. The total amount of ECSC loans on which exchange risk cover will be offered is currently limited to £15 million and this has not yet been fully committed.
The Department of Energy maintain a close watch on the development and progress of measures to stimulate coal firing in other countries.
My right hon. Friend the Secretary of State announced in the House on 21 March that the closing date for applications under both the coal firing scheme and the exchange risk guarantee scheme for ECSC coal firing loans was being extended by nine months to 31 December 1983. These schemes could, however, close earlier if the existing allocations were to become fully committed, and companies still considering applying would be well advised not to delay submitting their applications.