National Coal Board (Price Structure)

Oral Answers to Questions — Coal – in the House of Commons at 12:00 am on 12 March 1968.

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Photo of Hon. Nicholas Ridley Hon. Nicholas Ridley , Cirencester and Tewkesbury 12:00, 12 March 1968

asked the Minister of Power whether in view of the fact that the National Coal Board's offer to supply coal to Alcan contains undue or unreasonable preference or advantage, he will take proceedings in respect of this breach of their statutory duty.

Mr. Geoffrey Wilson:

asked the Minister of Power what study he has made of the classes of users which may qualify for preferential prices for coal supplies; and if he will make a statement.

Photo of Mr John Osborn Mr John Osborn , Sheffield, Hallam

asked the Minister of Power, based on the revised estimates of coal demand for 1971 to 1975, and as result of the proposed reorgani- sation of the coalmining industry in mechanised cheap production collieries, at what price range per ton and per therm at pithead he estimates that coal will be available to the Central Electricity Generating Board, and selected industrial users requiring deliveries in bulk, with a view to implementing a cheap energy policy.

Photo of Mr John Eden Mr John Eden , Bournemouth West

asked the Minister of Power what study he has made of the consequences, other than an increase in price to other consumers or a greater deficit to the National Coal Board, which will follow from coal being offered to some users at 3¼d. a therm or below, while the average price is 4·6d. a therm.

Photo of Mr Willie Hamilton Mr Willie Hamilton , Fife West

asked the Minister of Power what progress has been made towards the establishment of a pricing structure for the coal industry which would enable the National Coal Board to quote preferential prices to both public and private customers engaging in large and long-term contracts.

Photo of Mr Richard Marsh Mr Richard Marsh , Greenwich

I am in consultation with the Board about its price structure.

Photo of Hon. Nicholas Ridley Hon. Nicholas Ridley , Cirencester and Tewkesbury

Would the right hon. Gentleman agree that if an offer 30 per cent. below the published price of coal was made, that would indeed be an undue advantage? If not, would he say what he would consider to be an unfair preference or advantage?

Photo of Mr Richard Marsh Mr Richard Marsh , Greenwich

It is not really for me to say. The Act lays this responsibility on the Board. I do not know if the hon. Gentleman has a specific example in mind, but I assure him that I have received no complaints about unfair advantage being given by the National Coal Board.

Mr. Wilson:

Would not the right hon. Gentleman agree that the aluminium smelting industry is being offered an advantage?

Photo of Mr Richard Marsh Mr Richard Marsh , Greenwich

I will be answering a subsequent Question on the Alcan project.

Photo of Mr John Osborn Mr John Osborn , Sheffield, Hallam

Is it not essential in a fuel policy that there should be a correlation between the price of a fuel and the volume required? Will not the volume of coal consumed depend on the price of this fuel?

Photo of Mr Richard Marsh Mr Richard Marsh , Greenwich

It depends on price and other factors.

Photo of Mr Willie Hamilton Mr Willie Hamilton , Fife West

Does my right hon. Friend accept the soundness of the principle implied in Question No. 53?

Photo of Mr Richard Marsh Mr Richard Marsh , Greenwich

This is perfectly normal commercial practice.

Photo of Mrs Margaret Thatcher Mrs Margaret Thatcher Shadow Secretary of State, Shadow Minister (Fuel and Power)

Does the Minister's Answer—that he is in consultation with the industry—mean that no reported contracts can go ahead without his consent?

Photo of Mr Richard Marsh Mr Richard Marsh , Greenwich

Bless my soul, no. The pricing policy of the N.C.B. is a complex matter. I said that we are carrying out a full examination, with the Board, of its pricing policy.