Coal Industry Bill

Part of the debate – in the House of Commons at 9:05 pm on 17 June 1980.

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Photo of Mr Alexander Eadie Mr Alexander Eadie , Midlothian 9:05, 17 June 1980

Some hon. Members looked a little sceptical when one of my hon. Friends said that the NCB has calculated that there will be an increase of about 14 per cent, in its costs. My right hon. Friend the Member for Devonport said that the board was lucky if it was getting away with an increase of 17 per cent. My right hon. Friend also pointed out another significant aspect of Government policy. Every percentage point on the rate of inflation costs the NCB about £12 million. The Government talk about financial viability, but they are piling further costs on the industry. Interest, even if prices in 1978–79 were level, will be £295 million in 1981–82, £240 million in 1980–81 and £183 million in 1979–80. Government policies are piling costs on to the industry. Some of the calculations that have gone into the Bill indicate that Government thinking on finance has become out of date since the publication of the Bill. I hope that the Minister will say whether the costs that we have outlined are accurate or inaccurate.

The Bill seems to be in the hands of accountants because accountancy runs through it. I wonder, incidentally, how much coal was produced by the accountants who drafted the proposals. There is a proposal in the Bill for the National Coal Board to write the records in the annual report differently. I hope that the Minister has not acted before receiving parliamentary approval. The Bill still has to undergo parliamentary scrutiny. I should like an undertaking from the Minister that until he receives parliamentary approval this proposal will not be implemented.

We understand that the grants, in the compilation of the board's reports, will come under the heading of deficit financing. However well the industry performs, its balance sheet will continue to show a loss. One can imagine the holiday that the media will have when the balance sheet and annual report of the National Coal Board are published. I can already see the headlines. This will have a shattering effect on morale in the industry. However well the miner performs, the industry, according to the balance sheet, will continue to be shown in deficit. I wonder whether the Government have considered the damage that will be done to our standing overseas when the headline "British coal industry in the red" appears.

In his opening speech, the Secretary of State paid proper tribute to the expertise of British mining engineers. Their reputation is world-wide. If, however, the accounts are to be published in the manner that the Government intend under the Bill, what will happen to the £200 million worth of exports on which we depend? What will happen to the people working in these industries who depend on those exports? The Government have got the matter wrong. Great damage will be caused to the industry.