British Coal (Exchequer Subvention)

Oral Answers to Questions — Energy – in the House of Commons at 12:00 am on 24 February 1992.

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Photo of Mr John Marshall Mr John Marshall , Hendon South 12:00, 24 February 1992

To ask the Secretary of State for Energy what was the total subvention to British Coal from the Exchequer over the past five years.

Photo of David Heathcoat-Amory David Heathcoat-Amory , Wells

The total amount of Government grant that has been made available to British Coal over the past five financial years is £8·5 billion.

Photo of Mr John Marshall Mr John Marshall , Hendon South

Does not that figure underline the Government's commitment to the coal mining industry? Would my hon. Friend care to hazard a guess about how many fewer jobs there would be in that industry if that money had not been given? Does he agree that that money underlines the huge benefits to the taxpayer that will come from the privatisation of the industry, to which the Labour party is opposed?

Photo of David Heathcoat-Amory David Heathcoat-Amory , Wells

My hon. Friend is right to point out that, in the past five years and beyond, the taxpayer has not been ungenerous in giving money to the coal industry. In return, we expect the industry to fight for its share of the electricity market by improved productivity. I am delighted at the progress that the industry has made with Government assistance.

Photo of Mr Peter Hardy Mr Peter Hardy , Wentworth

The Minister has accepted that investment by the state has assisted miners to achieve records of productivity unmatched by the rest of British industry. However, despite that achievement in the national interest, the Government have sat idly by while the electricity supply industry has disregarded that massive increase in productivity. Not only have the Government disregarded the electricity supply industry's disdain for that achievement, but they have sat idly by and watched collieries close which, in the past five years, have taken up a large part of that sum of money about which the Minister boasted just a moment ago.

Photo of David Heathcoat-Amory David Heathcoat-Amory , Wells

The provision of £8·5 billion of grant aid hardly amounts to standing idly by. The mining industry knows that its long-term security comes only from selling its product to customers at prices they can afford. If we insisted on electricity generators buying expensive coal, that would be bad news for domestic electricity customers and it would cause job losses in the rest of British industry.

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