Coal Industry Bill

Part of the debate – in the House of Commons at 6:24 pm on 17 June 1980.

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Photo of Mr George Grant Mr George Grant , Morpeth 6:24, 17 June 1980

Feelings in South Wales are running high. An area director recently spoke about 12 pit closures that would not be subject to the review procedure. All the employees of the South Wales coalfields were up in arms, as was the National Union of Mineworkers.

Recently, Labour Members of Parliament met the Coal Traders' Association. One of its complaints was that it could not get anthracite in sufficient quantities and that it was having to import it, yet there is a desire to close anthracite pits in South Wales. The price of the anthracite that is imported by the Coal Traders' Association is more than the price that is paid for it from the National Coal Board.

If the financial structures of 1978–79 are replaced by the structures that the Secretary of State now recommends, instead of the board being in a break-even position it will face a loss of about £79 million, but to meet the targets that the Secretary of State is setting it will have to show a profit of £216 million. These attempts to put the board in such financial strictures can only breed unrest, and they will affect morale and output. I warn the Secretary of State that if he thinks that the National Union of Mine-workers will step aside and allow pit closures to accelerate because of these policies, he is mistaken.

The EEC recently agreed that there was a need to double coal production. The world coal study group, which consists of 16 major industrialised countries, recently said that there was a need to treble coal production by the year 2000, and that steel production should be increased 10 to 15-fold by that year. That is interesting, but, as a member of the EEC, we should consider the financial year 1978–79. In that year France subsidised its coal industry to the tune of £14 a tonne. West Germany subsidised its coal industry to the tune of £12 a tonne, and the United Kingdom subsidised its industry by £1 a tonne, and I understand that the figures for France and West Germany were surpassed last year. I should have thought that in these difficult times, and looking to the future, the Government would seek to stimulate and expand coal production, and that morale in the rnining industry would be important to them.

In answer to a parliamentary question on 21 April from the hon. Member for Bedford (Mr. Skeet) on coal bum, the Under-Secretary of State said : In 1979 United Kingdom power station coal burn was about 89 million tonnes … and could lie between 65 and 78 million tonnes in 2000."—[Official Report, 21 April 1980 ; Vol. 982, c 30.] Where does the "Plan for Coal" fit into those figures? I should have thought that the Government would seek to expand the coal industry, not contract it. I hope that the Government are not relying on bridging the energy gap by a rapid expansion of nuclear energy. The public would not stand for a rapid increase in nuclear power stations. Proposals to build a nuclear power station in my area will be met with stiff opposition from everyone.

The Secretary of State said that miners would not be affected by the ramifications of the Social Security (No. 2) Bill. While miners might be affected only by having to pay income tax according to individual cases, the National Coal Board will have to pay the social security and unemployment benefits. That applies to early retirement payments, the redundancy scheme and the sickness and pneumoconiosis schemes. Although the cost has not been accurately estimated, the board has said it will probably be about £50 million.

I have expressed my fears about the Bill, but I welcome parts of it. I welcome the increased borrowing powers that are given to the National Coal Board, the provision for deferred interest loans, the increase of contributions to the pneumoconiosis scheme, and the inclusion of coke oven and coke plant workers in the miners redundancy scheme.

Bearing in mind the political upheaval in the Middle East and the escalating world oil prices, and in the interests of the British mining industry and the British economy, I ask the Government to consider a number of matters. The industry's planning must be based on clear production targets, and the financial framework that is required to achieve those targets must embrace continuing Government support, at least until the completion of the "Plan for Coal" is in line with general EEC practice. The research and development efforts aimed at securing new markets must be greatly increased, with a clear Government commitment to the use of new technology and unambiguous support for the construction of the proposed liquefaction and gasification plants. Medium-term coal supplies or sales must be safeguarded by the introduction of effective controls of coal imports and by the construction of new coal burning plants.

What I have said will probably not change the vote in the event of a three-line Whip tonight, but I hope that the words of Labour Members, who are seriously concerned about the industry, will be considered in Committee.