Coal (Hansard, 6 November 2001)

§ Mr. Kevin Hughes
To ask the Secretary of State for Trade and Industry if she has security of supply concerns about coal production; and if she will make a statement.[10373]
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§ Mr. Wilson
Domestic supplies constitute about 50 per cent. of our current coal use, competing in a diverse and active international market. I believe this market provides a secure and diverse choice of coal supplies in which I would expect UK production to continue to play a significant role.

§ Mr. Kevin Hughes
To ask the Secretary of State for Trade and Industry what risk assessment she has made about the potential for disruption to coal supply to the UK.[10378]

§ Mr. Wilson
No formal risk assessment has been made about the potential for disruption to coal supply to the UK. However, the current Coal Aid Code, the European Commission's Security of Supply Green Paper and the Commission proposal for state aid to the coal industry all acknowledge that the geopolitical diversity of coal sources is such that the risks of disruption to supply are minimal.
In terms of a physical threat to coal assets or the freight transport infrastructure, the Government and relevant companies are working with the security services to ensure that the risk of terrorist attack is properly assessed and that appropriate measures are in place to reduce the risk of disruption.

§ Mr. Kevin Hughes
To ask the Secretary of State for Trade and Industry what plans she has to promote the capping of EU state aid to the UK coal industry at 2001 levels.[10375]

§ Mr. Wilson
On 25 July 2001, the European Commission adopted a proposal for a Council regulation on state aid to the coal industry. There is no specific cap in this proposal. However, to see levels of aid increase on current levels would contradict aims for greater liberalisation in EU markets, and run counter to the commitment given by member states at the Lisbon Council to reduce the level of state aids, shifting the emphasis from supporting individual companies or sectors. The Government would therefore at least like to see payments by each member state capped at the levels of aid it granted in 2001. We are pursuing this objective in Council negotiations.

§ Mr. Kevin Hughes
To ask the Secretary of State for Trade and Industry what plans she has to promote amendments to reduce EU state aid to the UK coal industry on a year-by-year basis.[10374]

§ Mr. Wilson
The European Commission proposal for a Council regulation on state aid to the coal industry beyond 2002 requires aid to be reduced in a "continuous and significant manner". It is very important that this is achieved so that we progress to a liberalised market without aid, and honour the commitment given at the Lisbon Council to reduce the level of state aids. Therefore we would like to see amendments clarifying that the total level of aid which may be granted by any member state must be reduced in a significant manner on a year-by-year basis. We are pursuing this objective in Council negotiations.