Open-cast Coal Sites (Restoration) - 29th January 2015

Mrs Moon

The Scottish and Welsh Governments have published papers on failure to restore open-cast sites and talk of a £2 per tonne levy imposed by the Coal Authority. Despite questions to the Treasury and the Department of Energy and Climate Change, I have been unable to clarify if the levy was imposed at Parc Slip Margam, how much was collected, where it was held and which mines were affected.

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Ian Lavery (Labour)

We need to embrace the fact that coal is not going away. As I have discussed with the Minister on numerous occasions, we need to ensure that coal is embraced—indigenous coal, together with carbon capture and storage, which will ensure we can continue burning coal with zero emissions. We must also secure state aid for Kellingley, Thoresby and Hatfield in the deep-mine sector. We have had discussions on that with the Minister as well.

This is happening at sites across the country. Scotland and Wales have their own huge problems. I am aware of a letter having been sent to the Secretary of State for Energy and Climate Change about a potential deal on carbon price support, with a request that the tax be withdrawn for certain coals in and around open-cast areas. At least that is an attempt to find a solution, which would help, but it raises many questions as well. We need a UK-wide pot. Coalpro, the trade organisation, has come up with a wonderful idea. It has proposed a £1 levy on every tonne of coal burned in the UK. That would provide £50 million for a communal pot for the UK, which could be used by the Coal Authority to ensure that local authorities had enough money to restore every site, regardless of whether it was in England, Scotland or Wales.

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Matthew Hancock

We are working with the Treasury on whether there can be exemptions from the carbon price floor. The Treasury has the lead on the carbon price floor because it is a tax, but that issue is worth considering. The CPF exists to enable us to meet our climate obligations, and it is an important part of our armament for tackling climate change. We have capped the carbon price floor—we have fixed it, so to speak—but I am happy to look at that and to continue to discuss it with my hon. Friends.

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