Tom Greatrex
Main Page: Tom Greatrex (Labour (Co-op) - Rutherglen and Hamilton West)Department Debates - View all Tom Greatrex's debates with the Department for Transport
(12 years, 1 month ago)
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Sandra Osborne (Ayr, Carrick and Cumnock) (Lab)
I apologise in advance, Sir Alan, because, as you can probably tell, I picked up a rotten cold over the weekend, so my accent is probably even less understandable to hon. Members than it normally is. I will do my best.
It is not possible for me to overemphasise the threat that the proposed swingeing increase in charges for access to the rail network poses to the coal industry. I appreciate that the Office of Rail Regulation is obliged to consult on track access charges ahead of the next contractual period, as has happened twice before, but the last time a rise was proposed—for 2009 to 2014—the ORR subsequently listened to responses from the coal and power industries and ended up cutting charges. It is all the more surprising then that it should now seek to raise charges to the coal industry by a massive 64%. It has proposed introducing an additional freight-specific track access charge to apply to electrical supply industry coal and spent nuclear only, which could increase the cost of Scottish coal delivered to English power stations by £4.50 a tonne.
Apart from causing a further switch from coal to gas and encouraging a modal switch from rail to road, the impact would be catastrophic for Scottish producers, who are already in a precarious position.
Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)
Does my hon. Friend agree that it seems bizarre when the Government are talking about energy security that the effect of the charge is that we will be more likely to import coal, rather than using coal from our shores?
Sandra Osborne
I certainly do agree, and I intend to raise that point later in my speech.
The charge would exclude Scottish-produced coal from the English market, resulting in a reduction in output of up to £3 million tonnes a year and, as my hon. Friend said, its replacement by imports. More than 1,000 direct jobs will be lost in an area of already high unemployment, particularly in the west of Scotland. Even the threat of the proposal is constraining investment, and it is imperative that it is withdrawn immediately.