Oral Answers to Questions

Tom Greatrex Excerpts

Thursday 6th November 2014 Commons Chamber

[Matthew Hancock]

I have been working hard with UK Coal to ensure that we can refinance it. The Government have put in a £4 million loan on a commercial basis, so we are working incredibly hard in that regard. The hon. Gentleman should also take up this matter with his own Front-Bench team who voted to accelerate the closure of coal-fired power stations, which would of course to help to undermine the coal mining industry.

[Tom Greatrex (Rutherglen and Hamilton West) (Lab/Co-op)]

Further to the question from my hon. Friend the Member for Wansbeck (Ian Lavery), last week the Minister stated in this House with his characteristic humility and good grace that he had

“secured the future of the existing pits.”—[Official Report, 28 October 2014; Vol. 587, c. 247.]

He knows of course that, welcome as it may be, the commercial loan from the Government is in reality a short-term measure. Hundreds of jobs have been lost at both Thoresby and Kellingley. UK Coal told me this week that, with the help of the Minister’s officials, it will submit an application for state aid clearance to his office by the end of next month. Given how pressing this situation is, will the Minister now give the House an absolute and clear commitment that he will ensure that his Department will reflect and decide on the merits of that application, and on whether to submit it to the European Commission for approval before the dissolution of Parliament?

[Matthew Hancock]

Of course I will consider that submission, not least because we and the Department for Business, Innovation and Skills put in a huge amount of effort to bring that about. We worked hard to secure a commercial loan to get us over the short-term cash-flow issues and to look at longer-term options. I am grateful to the hon. Gentleman for welcoming this work and for his support. It is good to know that there is support on both sides of the House.