Hatfield Colliery — House of Commons, 2015-07-02
Topic: Energy
Anna Mary Soubry (Conservative, Centre-right): If the right hon. Gentleman is right, why did the directors never say that to me? They certainly did not say it. They knew that if there was any chance of a contract, they would have pursued it. They did not do so. Why did the right hon. Gentleman not have this debate with the directors? Why did he not say to them, "Come on, guys, you’ve got an offer here. Get it written down in black and white. Get the contract signed." That never happened because the directors had taken the honourable and the right decision. I am sure they took that decision with bucket-loads of regret, but the mine cannot continue because it is no longer financially viable, notwithstanding the fact that up to £20 million of taxpayers’ money will undoubtedly help to ease it, as it has done in the past. That money has been spent far more quickly than was ever anticipated. It was due to last all the way through to next August, but unfortunately, at this rate, there could be only a few weeks left, if that. And of course that includes the £4.5 million to ensure that the mine is put good. I reiterate that Hatfield has been unable to secure contracts to sell sufficient volumes of coal at the price necessary to support its closure plan. That is why the directors decided that it was not economically viable to continue mining. It is not a question of the Government putting in additional short-term funding. We have reiterated our continued commitment to make up to £20 million available—that was originally announced in May—to assist the company in achieving a managed closure. The reality is that there is a lack of economically viable contracts to sell the coal that is mined. I am running out of time, but I promise to answer in writing all the other questions that the right hon. Gentleman has rightly raised about the carbon price floor and other matters. He also asked about carbon capture and storage, which I will try to deal with in a moment I noticed on yesterday’s news that the first step had been taken towards opening a £1.7 billion potash mine in north Yorkshire, with the local authority giving its approval for the mine. That will provide 1,000 permanent jobs in the area. Those of us who have lived in or represented a coalmining area will know that there is a history of coalminers travelling to find work. I remember that one of the first National Union of Mineworkers officials I met was Jimmy Hood. He was at Ollerton at the time. He had travelled down from Scotland to work there, and many miners across the country came to Nottinghamshire or travelled to Wales to find work. I very much hope that some of the new jobs in north Yorkshire will go to the men of Hatfield I want to deal briefly with the question of carbon capture and storage. It has been claimed that the closure of Hatfield is short-sighted because it could have been used to supply the proposed new power station at Drax, which will be fitted with carbon capture and storage capabilities. The long-term future of coal is inextricably linked to CCS, and the Government have committed significant resources to facilitate its commercialisation, including committing £1 billion to our CCS competition, plus operational support under contracts for difference. However, on current plans, the coal-fired CCS project at Drax, one of the two CCS projects being supported through the Government’s competition, is unlikely to be generating until 2021, so that would not have been of assistance to Hatfield. I reiterate—