Energy Bill

I do not think that there will be a subsidy on coal. It is clear that coal costs have been driven down, and will continue to be driven down into the future. Ultimately, that is clearly an issue about security of supply, which is the point made by the right hon. Member for Wokingham. In the future, all sources of energy will be in demand internationally, and we need to secure our base through British coal. I want Welbeck colliery reopened, and reopened quickly. It would cost £200 million. Discussions are taking place with the European Investment Bank, which likes the project, but there are hurdles to be overcome, and the hurdle that it cannot jump at the moment is that which the EIB wants it to jump: coal from Welbeck should be burned cleanly. The issue for miners in Nottinghamshire, UK Coal and the Government is how we get there. After much discussion, the consensus is that very quickly we have to get a demonstration plant up and running in Nottinghamshire or Yorkshire where that coal can go to. The demonstration model, backed by the levy in the Bill, is the way to do that. Like the hon. Member for Wealden (Charles Hendry), I spend a lot of time talking to energy providers, and it is clear to me that they are dependent on the new mechanism. It is also clear that they are most concerned about the introduction of an EPS. It is interesting that in this discussion no one has been clear about what the levels in the EPS are to be. People say, "It's going to happen within a year. We can define it within a year", but CCS will not be up and running within a year. Let us be absolutely clear about this: it will be five years, at least, before we know how to put that technology together. Like the hon. Member for Northampton, South, I know that we can put the technology together, but I am not clear about the future costs. The perception is that the cost of burning coal, with CCS on top of it, will be 10 per cent. greater than for present conventional mechanisms. We need to get the experience and to demonstrate not just the one project, but the four that have been mentioned. It is clear, therefore, that we have to make progress quickly, and I am delighted with the acceleration that has taken place within the new ministerial team, on this issue, at the new Department.