Hatfield Colliery — House of Commons, 2015-07-02
Topic: Energy
Edward Samuel Miliband (Labour, Centre-left): Let me explain how we got here. I want to place on record my thanks to Vince Cable and to the former Minister of State at the Department for Business, Innovation and Skills, the right hon. Member for West Suffolk (Matthew Hancock), for what they did before the election. As the mine faced a serious crisis, they agreed at least to prolong its life until summer 2016, with up to £20 million of closure aid. Unfortunately, even after the aid was granted, things deteriorated quickly for Hatfield. In April, the Government doubled the carbon price floor, a tax on high carbon fuels. The levying of the tax at point of sale rather than when the coal is burned means that the energy companies have an incentive to stockpile coal, and they did so in advance of April to avoid the higher levy. Companies had huge stockpiles of coal and orders at Hatfield dried up That was the grim situation the Minister discussed with me two weeks ago. My argument to her was not that the Government should not have increased the carbon levy, but that they should take responsibility for its effect on Hatfield. We needed to piece together orders that might have made it possible for the mine to remain open. Thanks to the effort of the management, one energy company did offer to buy half the coal and part of the rest could also have been sold. In the end, however, there was a fundamental stumbling block to the mine remaining open In contrast with what was said before the election, the Minister said that not a penny more of Government aid could be provided. My argument to the Minister was, and remains, that early closure will end up costing more, not less, when we take into account the revenues that would come back to the Government if the miners were employed for another year. Calculations made by the company suggest that the extra investment required to keep the mine open as planned to summer 2016 would have been more than offset by tax and VAT revenues coming back to the Government. That calculation does not even take account of the money the Government will now pay out in benefits to miners who do not find work; nor does it factor in the impact of early closure on the 100 companies in the local supply chain or on the local economy, never mind the social effect of what has happened. The miners feel they have had the rug pulled from under them. I do not believe the decision makes economic or industrial sense, and nor is it morally right. I believe the Minister should think again I also want to use the debate to raise specific issues on which I hope the Minister can be of help. As I do so, I hope she will consider the context. Historically, we have asked the miners throughout our country to put themselves at some risk, in dangerous conditions, to help the rest of us to power our country. We therefore owe them a special duty of care. The miners at Hatfield were led to believe that they would have another 12 months of work and could therefore plan their futures. However, that situation changed in large part due to a Government decision. Inevitably, this chain of events leads to a deep sense of grievance against the Government. That grievance is compounded by the fact that the Treasury has benefited to the tune of £300 million from the high carbon tax. Our ask, therefore, is that the Government accept their share of responsibility and use a small part of the Treasury’s windfall gain to help the miners and their families. One option is to extend the life of the mine, but there are other things the Minister could do and I want to raise them with her First, I want to raise the issue of redundancy. Hatfield miners will be getting the minimum statutory redundancy of as little as £475 for every year worked, rather than the £900 for every year worked that was the norm in the industry. Since the mine closed briefly in the early 2000s and only reopened in 2006, the maximum service any miner can claim for is nine years. We are talking about very small sums of money that the men will receive. It means they have a very small margin to support them as they seek other employment. The Minister will want to reflect on that. I ask her to do so In those circumstances, and as a gesture of goodwill to the miners at Hatfield—as well as at the last two remaining deep mines, Kellingley and Thorsby, which are due to close in the coming months—I hope the Minister will seriously consider the possibility of enhanced redundancy I also believe that the miners at Hatfield deserve the best support to find fulfilling and well-paid work, as well as retraining. Will the Minister undertake that the work of the Employment Service will continue—not just for a short period, but at least for the eight weeks that the mine will remain open and beyond? I hope she will work with the Coal Authority, which will take over running of the site, as it might be able to take on some of the former workers. I ask the hon. Lady, as a BIS Minister, to use her good offices to work with the owners of the site, ING, to think about what a creative and possible future for the site would look like Those are some specific asks about Hatfield that I put to the Minister, but I want to make a broader argument about Hatfield and the low-carbon transition and what we should learn from this episode. Coal is definitely a polluting fuel, and it is right that environmental standards are applied to it as part of the battle against climate change. That means that there is no viable future for unabated coal, but there is a future for clean coal technology through carbon capture and storage as part of our potential armoury in the transition to a low-carbon economy. [Interruption.] As my hon. Friend the Member for Easington (Grahame M. Morris) says, there are tens of thousands of jobs along with it However, the Government’s energy policy does not add up. There is a plan for a CCS plant at Drax by 2020. It will be burning coal, and it could be coal from Hatfield colliery, which is less than 20 miles from Drax. Yet it will not be: it will be coal imported from thousands of miles away, from Colombia or Russia, with all the associated environmental costs Projections from the Department for Energy and Climate Change say that by 2029 we are set to burn 26 million tonnes of coal or natural gas through CCS, but none of that will be from deep mines in the UK. I think people will look back on this and wonder how we got to this position. I would like the Minister to reflect in her reply on whether she believes that is a rational or sensible state of affairs and on what it says about the Government’s energy policy. I would like her to reflect, too, on how we got here The first CCS plant was due to be up and running by 2014. The last Labour Government committed to two to four CCS projects, and agreed a small levy to fund them. At the time, when I was the Secretary of State, I remember the Conservative Opposition criticised me—Oppositions tend to do this—for not being nearly bold enough. They said there should be four projects—never mind two to four—and asked why I was not getting on with it. What then happened is that the coalition Government came to power, dithered for two years and decided to scrap the previous Government’s plan and start all over again. As a result, as the Climate Change Committee noted in its report earlier this week, CCS will be up and running not by 2014 as projected, but by 2020 That delay has been fatal for Hatfield and the other deep mines in our country. I say that not to score points, but because I hope the Minister will learn lessons for the future. My constituency has an interest in a gas-fired CCS project at Hatfield—the Don Valley project, which has secured European resources. Yesterday I met the director of Sargas Power, which owns the site and is now overseeing the project, and he emphasised above all the need for timely decision making by Ministers, so we cannot afford more dither and delay This takes me to a wider point that I hope the Minister will consider. In the two discussions we had—I hope the Minister will allow me to say this—the most heated moments were about whether the Government’s decision was motivated by ideology. [Interruption.] I see that she agrees from a sedentary position.