Merchants fear coal will rise

Press, 20 February 1979, Page 7

Merchants fear coal will rise

PA Hamilton Coal merchants have expressed fears that coal prices might rise sharply as a remit of the Government’s derision to increase the price #f electricity. The president of Coal Merchants’ Federation (Mr R. tunliffe) said in Huntly that any further large mcreases in the price of coal fould seriously jeopardise the tadustry.

"The consumer will continue to buy coal only if it is iheaper than alternative lorms of energy,” he said. Coal prices were linked to those of oil, electricity, and aatural gas through the Government's energy pricing policy, said Mr Cunliffe.

“We believe coal can greatly assist the present electricity situation, particuferly in the area of home ieating.’’ he said. “Efficient setback units fired by coal tan now provide hot water

and heating at a lower cost.”

However, the federation’s executive was disappointed that the Government had not taken steps to offer loan assistance for the installation of coal-burning wetback units.

The federation also sent a telegram to the Minister of Energy (Mr Birch) on Tuesday, expressing ’ concern about the Iranian crisis and possible further unrest in nations of the Organisations of Petroleum Exporting Countries. “We have asked Mr Birch to persuade his Cabinet colleagues to give urgent consideration to making the availability of coal for industrial fuel more attractive to current oil users,” Mr Cunliffe said.

The equivalent of up to 250,0(10 tonnes or coal a year could be substituted for fuel oil in industrial and commercial installations, he said.