Part of the debate – in the House of Commons at 3:39 pm on 3 March 1993.
Mrs Elizabeth Peacock
, Batley and Spen
3:39,
3 March 1993
I beg to move,
That leave be given to bring in a Bill to amend section 36(2)(a) of the Coal Industry Nationalisation Act 1946; and for connected purposes.
The present furore in the coal industry and in the country, following British Coal's and the Government's October announcement of their intention to close 31 pits, has brought into focus many aspects of the coal and energy market, which are the subject of on-going reports and debate.
The future of those 31 pits remains in the balance, with 21 working and 10 closed but subject to a review procedure. My view of the way in which the announcement was made in October is well known, and I do not intend to go over that ground again today. All I shall say is that I look to my right hon. Friend the President of the Board of Trade to produce a balanced energy programme which will allow a substantial number of those pits to remain open under British Coal management.
I continue to press that view, on the basis that we must save not only the jobs of the Majority of the 30,000 miners involved, but also the livelihoods of the estimated 50,000 additional people employed in associated industries or small local businesses, and those involved in this country's wider manufacturing base.
For some mines, there is an alternative to remaining under British Coal management: they could be leased or sold for private licensed operation. I have positive information that a consortium could be interested in operating Markham Main colliery in Yorkshire, and that the well-known mining company, Ryan, would be interested in operating Betws colliery in Wales; and I am sure that there could well be others.
The chairman of British Coal has publicly said that he would not be opposed to pits within the 10 under review being transferred to licensed status and operated privately. I and others intend to keep him to that offer, to maximise the number of mining jobs retained and to enable the removal of the so-called easily mined coal from these pits. That is where the problem arises—hence the need for my Bill.
Present legislation limits to 150 the number of workers employed underground in licensed mines at any one time. For many mines to operate efficiently and safely—I stress the word safely—that number is inadequate. Without becoming involved in a discussion about the number of men needed to run a privately operated mine compared with the existing number, a limit of 150 underground workers at any time in a licensed mine is too restrictive.
There is a stronger case than ever for removing the restriction. If it remains in place, the pits that British Coal plans to close will have no future, because virtually all of them employ many more miners than the licensing limit. Some of the pits that British Coal may not want to work remain viable, with good short-term coal reserves and good industrial relations. They could operate profitably. I cite as an example Grimethorpe colliery in South Yorkshire, which the international mining consultants Boyd have recently shown to be viable.
If the restriction is removed, there is a chance that at least some of the pits, and therefore some of the miners, could find a future in the private sector. I am sure that the House is well aware that the Coal Act 1938 and the Coal Industry Nationalisation Act 1946 provide the basic legal framework for the coal industry. The 1938 Act removed the freehold ownership of coal from the private sector and vested it in the Coal Commission. The 1946 Act created the National Coal Board, which acquired all the interests of the Coal Commission and was given the exclusive duty of working and searching for coal.
Section 36(2) of the 1946 Act, however, empowered the NCB to license coal mining or, as an ancillary, the mining of other materials. Until 1990, the size of licensed deep mines was severely curtailed by the statutory manpower limit of 30 men employed to work underground. The Government went some way towards liberalising the regime for the licensed sector by section 4 of the Coal Industry Act 1990, which increased the limit to 150 men.
The scope of my Bill is totally to remove the restriction, by amending section 36(2)(a) of the Coal Industry Nationalisation Act 1946. I hope that the House will support me in my endeavour. I am convinced that there is no shortage of individuals and companies interested in creating a future for some of the pits. There is certainly no shortage of energy and commitment among the people at the pits, who believe that there is potential there. Some of them may prove to be over-optimistic.
There should be no pretence that the amending legislation would save as many jobs as some of us would like. However, the new operators would want to run the pits as efficiently as possible—as I am sure British Coal do —which might mean fewer jobs. There should be no illusions that the measure would be a cure-all for the coal industry. At least the operators would provide the opportunity—a second chance—for the operations to succeed and for some jobs to be saved. It would be wrong to allow an anomalous restriction to prevent that second chance.
On behalf of miners, their families and the wider energy needs of the country I ask the House for leave to bring in the Amendment to the outdated and unnecessary legislation.
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