23 October 2012
MP Appeals to Government to Consider Impact of Proposed Rise in Rail Track Charges Which Could Prove Final Nail in the Coffin for the Scottish Coal Industry
The Office of the Rail Regulator (ORR) has proposed the introduction of an additional freight specific track access charge to apply to Electricity Supply Industry (ESI) coal and spent nuclear fuel which could increase the cost of Scottish coal delivered to English power stations by £4.50/tonne (a massive 64% increase). This level of cost increase will impact heavily on the viability of coal operations in Scotland with the very real prospect of mine closures.
Sandra Osborne, MP of Ayr Carrick and Cumnock Constituency, which has the greatest number of coal sites in Scotland and the highest number employed in the industry (704 people), is holding a Westminster Hall debate tomorrow (Wednesday 24 Oct, 11am) to raise concerns with the Rail Minister and question the ORR consultation process and proposals.
Sandra Osborne said:
‘We are all well aware that this is being proposed in the context of revenue raising efforts and cuts across the board, but I will argue that it is ill thought out, counter productive and at odds with existing government policy and the statutory duty of the regulator to take account of the industry’s ability to bear the cost of the increase and to enable providers to plan the future of their business.
‘It amounts to a possibly fatal attack on the coal industry, especially in Scotland, and especially in my constituency at a time when coal prices have dropped by 30% in the last year. This is reflected in the recent trade announcements from a number of companies which show an industry already under severe financial pressure.
‘I am also asking the Government to take into account that this completely flies in the face of other Government policies of indigenous energy generation, security and affordability of supply, employment and sustainable development.’
Sandra concluded:
‘I am appealing to the Government to abandon these proposed increased charges and to agree that the most appropriate way forward is the maintenance of the status quo in respect of the current charging regime.’
Ends
For further information contact Sandra Osborne MP, 01292 262906
MP Appeals to Government to Consider Impact of Proposed Rise in Rail Track Charges Which Could Prove Final Nail in the Coffin for the Scottish Coal Industry
The Office of the Rail Regulator (ORR) has proposed the introduction of an additional freight specific track access charge to apply to Electricity Supply Industry (ESI) coal and spent nuclear fuel which could increase the cost of Scottish coal delivered to English power stations by £4.50/tonne (a massive 64% increase). This level of cost increase will impact heavily on the viability of coal operations in Scotland with the very real prospect of mine closures.
Sandra Osborne, MP of Ayr Carrick and Cumnock Constituency, which has the greatest number of coal sites in Scotland and the highest number employed in the industry (704 people), is holding a Westminster Hall debate tomorrow (Wednesday 24 Oct, 11am) to raise concerns with the Rail Minister and question the ORR consultation process and proposals.
Sandra Osborne said:
‘We are all well aware that this is being proposed in the context of revenue raising efforts and cuts across the board, but I will argue that it is ill thought out, counter productive and at odds with existing government policy and the statutory duty of the regulator to take account of the industry’s ability to bear the cost of the increase and to enable providers to plan the future of their business.
‘It amounts to a possibly fatal attack on the coal industry, especially in Scotland, and especially in my constituency at a time when coal prices have dropped by 30% in the last year. This is reflected in the recent trade announcements from a number of companies which show an industry already under severe financial pressure.
‘I am also asking the Government to take into account that this completely flies in the face of other Government policies of indigenous energy generation, security and affordability of supply, employment and sustainable development.’
Sandra concluded:
‘I am appealing to the Government to abandon these proposed increased charges and to agree that the most appropriate way forward is the maintenance of the status quo in respect of the current charging regime.’
Ends
For further information contact Sandra Osborne MP, 01292 262906