Coalfield Communities

Oral Answers to Questions — Trade and Industry – in the House of Commons at 1:43 pm on 17th January 1996.

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Photo of Paddy Tipping Paddy Tipping , Sherwood 1:43 pm, 17th January 1996

To ask the President of the Board of Trade what steps he has taken to ensure that the activities currently undertaken by British Coal Enterprise in coalfield communities will continue. [17892]

Photo of Mr Richard Page Mr Richard Page , South West Hertfordshire

The sale of British Coal Enterprise is a matter for British Coal, which has recognised from the start that in considering proposals the continuation of effective assistance to coalfield communities by purchasers is a priority.

Photo of Paddy Tipping Paddy Tipping , Sherwood

Will the Minister confirm that he has seen research from independent experts showing that British Coal Enterprise has created thousands of jobs in coalfield communities? Will he talk to the chairman of British Coal to ensure that BCE is not necessarily sold to the highest bidder but goes to the bidder offering value for money—that is, the bidder who promises to retain and create much needed jobs in coalfield communities?

Photo of Mr Richard Page Mr Richard Page , South West Hertfordshire

I pay tribute to the work that BCE has done over the years. It estimates that it has created about 123,000 job opportunities in the coalfield areas. British Coal has pre-qualified 14 organisations to bid for all of BCE or its individual activities. These include nine organisations for business funding, six for work space and four for Grosvenor. The deadline for receipt of firm offers will be the end of the month and BCE remains on course for sale by the end of March. British Coal will regard as a priority those bids which seek to continue BCE's work.

Photo of John Battle John Battle , Leeds West

As a result of the Government presiding over wholesale pit closures, entire communities are facing a generation of unemployment. Does the Minister agree that some mining communities still face unemployment levels between 30 and 50 per cent. above the national average? Has not the promise made by Ministers two years ago to mining communities suffering dislocation proved entirely inadequate? Selling off British Coal Enterprise will not help. Where are the Government's detailed action plans for investing in desperately needed economic restructuring to ensure that mining communities get some work and some hope? Or will the Government walk away again, leaving behind a shambles with everyone but themselves expected to pick up the tab?

Photo of Mr John Marshall Mr John Marshall , Hendon South

Arthur would like that.

Photo of Mr Richard Page Mr Richard Page , South West Hertfordshire

As I have said, the sale of BCE is a matter for British Coal. I must reject what the hon. Gentleman says. The Government continue to provide support for economic regeneration activities through regional selective assistance and the single regeneration budget, in addition to support available for European structural funds. The coal industry to which the hon. Gentleman seems to be harking back—and which I believe, indeed, that Arthur Scargill wishes to recreate—was losing the country and the taxpayer £1.3 billion a year. The hon. Gentleman seems conveniently to forget that sort of figure. I know, however, that he will gain comfort from the fact that unemployment rates in all of the 27 coal communities have fallen since 1992 as well as from the fact that coal production in 1995 was up on that in 1994 and imports were down in that period. That is a success story of which we should all be proud.