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Mr. Ronnie Campbell (Blyth Valley): This is obviously a policy through which new Labour will begin to work in the heartlands, and I hope that that continues. The miners of Ellington colliery, and their families, were delighted to hear the news this morning, as I heard it on the wireless on my way here. There was a whisper of it yesterday, but they were delighted by the confirmation that the Labour Government have decided to save Ellington colliery, because their jobs would have gone at the end of the month. I congratulate my neighbour, my hon. Friend the Member for Wansbeck (Mr. Murphy), who has spent enormous energies on the fight to save Ellington colliery. He is not here today, because he is at the pit, addressing concerns about the future. May I also say that it is good to see a Minister, not civil servants, taking decisions?
Mr. Byers: I look forward to continuing to try to convince my hon. Friend that a new Labour Government can act for all our people. This is a new Labour decision, which will help markets work effectively and lead people through change. I look forward to further debates with my hon. Friend on the subject. On a serious point, this is an important development of our energy policy. It will lift the stricter gas consents policy, which stood in the way of the market working effectively. To overcome the difficulties that might be caused as a result, we are also providing state aid to the coal industry. The combination of the two will ensure that we have employment creation through the lifting of the stricter gas consents policy and can maintain levels of employment in the coal industry.
Sir Teddy Taylor (Rochford and Southend, East): As the exciting new Labour Government cannot do anything until Brussels allows them to, can the Minister give us some idea when he is likely to get approval? Bearing it in mind that the opencast industry provides jobs in areas of unemployment and now works to strict environmental rules, will he make it clear that there will be no discrimination against opencast in his new proposals?
Mr. Byers: The scheme will be run on a non- discriminatory basis.
Mr. Ted Rowlands (Merthyr Tydfil and Rhymney): Let us pursue that issue. Is my right hon. Friend confident that the European Commission will approve his scheme promptly, given the short-term nature of the coal aid, which will be made available only until 2002?
Mr. Byers: Discussions that we have had already with the European Commission indicate that it has no objection in principle to a scheme starting now and lasting until July 2002. We will obviously have to continue those discussions, and I hope that we will be able to put the scheme in place as soon as possible. In the discussions
that we have already had, we have been able to assure the coal producers that finance will be available during this financial year, and that is the important element as far as they are concerned.
Mr. Tony Baldry (Banbury): Can the Secretary of State confirm that the whole purpose of this announcement today relaxing the gas consents policy is that more gas-fired power stations should come on-stream? Will he return to the question put by my right hon. Friend the Member for Wokingham (Mr. Redwood)? If the Secretary of State intends to lift the gas consents policy, how much more gas-fired capacity does he anticipate authorising during the coming year or two years? The only sector that will lose out from that policy will be the coal sector. Therefore, it is disingenuous to relax gas consents policy at the same time as giving £100 million to the coal industry. The Government are leading the coal industry into believing that it has a secure future, when it has anything but.
Mr. Byers: I made it clear in my statement that the coal industry will need to compete in the new market that we are creating, and that is the reality of the situation. The coal producers are acutely aware of that, and they have said that they would have difficulty competing in the short term without some state aid. That is why we are making those proposals. We will get the balance right and the coal producers have indicated that, with the support that we are able to provide, they will be able to compete effectively against any new gas-fired power stations that come on stream. No restriction will be placed on the number of gas-fired stations, and we will approve those projects that we feel are appropriate for the energy market that we intend to create.
Mr. Michael Clapham (Barnsley, West and Penistone): On behalf of the all-party coalfield communities group, may I welcome the package announced to the House by my right hon. Friend today? It will be good for the industry and for mining communities, but especially good for the mining machinery manufacturing industry. My right hon. Friend spoke about lifting the moratorium on gas-powered power stations, but will he consider allowing the electricity pool reforms to bed in before that happens? Collieries in areas such as Ellington Lynemouth are likely to close in four or five years. Will he ensure that miners in such areas are given further training, so that they have the skills to move on to other industries when the collieries eventually close?
Mr. Byers: The decision to lift the stricter gas consents policy from October was based on the report that I received last Thursday from the Director General of Gas and Electricity Markets, which was very much in line with the proposals in the White Paper. We intend to lift those consents when the new trading arrangements come into force in the autumn of this year.
My hon. Friend points out that employment levels might decrease in five or six years. We do not know for certain that that will happen, but it is clear that proposals for retraining and for economic regeneration must be in place. We will need a period of time in which they can develop, and the Government will be responsive to any proposals in that direction.
Mr. Peter Brooke (Cities of London and Westminster): The question from my right hon. Friend the
Member for Suffolk, Coastal (Mr. Gummer) to the Prime Minister last Wednesday seems to have provoked a remarkably--and admirably--rapid response from the Government. Its underlying theme was the climate change levy: does today's announcement have any implications, besides combined heat and power, for that levy?
Mr. Byers: As I said in response to the right hon. Member for Wokingham (Mr. Redwood), I do not think that my right hon. Friend the Chancellor will make any significant changes to the way in which the climate change levy will be introduced or implemented.
Shona McIsaac (Cleethorpes): As the Member of Parliament whose constituency probably has the most gas stations in it--other developments there have been held up by the moratorium--I certainly welcome the fact that the stricter consents policy has been lifted today. That is good news for job creation and industrial growth on the south bank of the Humber. About 7,000 jobs are at stake, and it is good to know that lobbying pays off in the long run.
However, will my right hon. Friend say how quickly consents will be given after the stricter policy is lifted in October?
Mr. Byers: At the moment, 15 consents have been submitted, and deferred. We will have to talk to the promoters of those consents to see whether they wish to maintain them as originally proposed or whether they want to change certain specifics. Over the next few months, we will study the timing of new applications in relation to the lifting of the stricter gas consents policy.
Mr. Michael Fabricant (Lichfield): The Secretary of State said in answer to an earlier question that there is no objection in principle from the European Commission for the grant that he has announced. Does that mean that there was such an objection to the grant for Longbridge, which was never granted by the European Commission? If there is no objection in principle to today's announcement, when will permission for it be given?
Mr. Byers: Two quite distinct schemes are in operation. Any state aid for the car industry is covered by the vehicle framework, which has separate procedures and is administered by a different Commissioner. The state aid proposed today comes under the European Coal and Steel Community's agreement, and the methods involved are quite different. We will need to work out the details of the scheme with the United Kingdom industry. When that is in place, an application will be made to the European Union. However, we expect funds to be made available during the course of this financial year.
Ms Rosie Winterton (Doncaster, Central): My right hon. Friend's statement today will be of great help in maintaining continuity in the mining industry. Will he and his colleagues in the Department of the Environment, Transport and the Regions therefore reconsider the closure of the mining inspectorate office in Doncaster?
Mr. Byers: I will certainly draw that issue to the attention of my colleagues in the Department of the Environment, Transport and the Regions, who I think have policy responsibility for that matter.
Miss Anne McIntosh (Vale of York): The announcement will certainly be good news for the coal
sector. The Secretary of State has also said that there is greater competition in the electricity market. Can he tell the House why he therefore still perceives a need for the overhead line transmission from Lackenby to Shipton in the Vale of York? What will happen to those coal-fired power stations in the constituencies of his hon. Friends--particularly Selby, Ferrybridge and Drax--when those consents are further applied for south of Shipton? Will he admit that there is no need for those pylons to be built?
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