– in the Scottish Parliament on 21 May 2015.
1. To ask the Scottish Government what progress has been made with the restoration of abandoned opencast coal sites in East Ayrshire. (S4O-04354)
Progressive restoration of active sites in East Ayrshire is under way, and an industry-led carbon price support restoration proposal designed to provide funding for the restoration of legacy surface mining sites is with the United Kingdom Government for consideration. The proposal has the potential to provide a funding stream for restoration projects, to preserve industry jobs and to retain restoration capacity. I wrote to Treasury ministers on 18 May, urging the UK Government to act swiftly in its consideration of the proposal and to engage promptly with Scottish Government officials.
The minister will be aware from recent announcements by Hargreaves Services that it has had no feedback from the UK Government regarding its case for carbon price support exemption. One consequence of that is the closing down of operations at a site in East Ayrshire, at a cost of 57 jobs. Could the minister engage with Her Majesty’s Government on the issue as a matter of urgency?
I am aware of the decision and have spoken to Iain Cockburn of Hargreaves. As I mentioned, I have taken up the matter, post election, with the UK Treasury minister Damian Hinds. As Mr Ingram rightly highlights, the matter is made more urgent because of the commercial pressures facing the sector because of the falling world coal price. The UK Government undertook, in the course of its most recent budget in March, to work with the Scottish Government to find a solution. I welcome that, and I welcome the cross-party working on the coal task force, including contributions from Sandra Osborne and Cathy Jamieson, which was appreciated.
I believe that there is to be a budget statement on 8 July. The proposals put forward by CoalPro—the Confederation of UK Coal Producers—based on the Cockburn proposal must have action from HM Treasury, and we are urging Treasury ministers to include that in the budget statement. I know that David Mundell, the Secretary of State for Scotland, was active before the election in giving his own personal support to the CPS exemption. I trust that he will now use his position as Secretary of State for Scotland to ensure that that solution is contained in the budget statement in July. Otherwise, we are seriously concerned for the future of the opencast sector in Scotland and the several thousand jobs that it supports.