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Downing Street Years - Margaret Thatcher [85]

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legacy of state socialism in Britain would probably have found the threatened miners’ strike in January 1981 quite incomprehensible: £2.5 billion of taxpayers’ money had been invested in the coal industry since 1974; productivity at some of the new pits was high, and a slimmed-down and competitive coal industry could have provided employees with good, well-paid jobs. But this was possible only if uneconomic pits were closed, which the National Coal Board (NCB) wished to do. Moreover, the pits which the NCB was intent on closing in a programme it put forward in early 1981 were not just uneconomic but more or less exhausted. On 27 January the Energy Secretary, David Howell, told me about the closure plans. The following afternoon Sir Derek Ezra, NCB Chairman, visited Downing Street and briefed me in person. I agreed with him that with coal stocks piling up and the recession continuing there was no alternative to speeding up the closure of uneconomic pits. I had long regretted that past governments had made such an enormous commitment to coal: if we had spent more on nuclear power, as the French had done, our electricity would have been cheaper — and, indeed, our supplies more secure.

As in the cases of BSC and BL, it was the management which had to implement the agreed approach and, inevitably, the Government found itself dragged into a crisis we had neither sought nor predicted. The press was soon full of NCB plans to close 50 pits and a bitter conflict was predicted. The National Union of Mineworkers (NUM) was pledged to fight closures and although Joe Gormley, its President, was a moderate, the powerful left-wing faction of the union was bound to exploit the situation and it was well known that Arthur Scargill, the hard-left leader, was likely to succeed Mr Gormley as President in the near future.

At a meeting with the NUM on 11 February the NCB Board resisted pressure to publish a list of pits which it was proposing to close and denied the figure of 50. However, the Board failed to mention the idea of improved redundancy terms, which was already being discussed by the Government, and instead undertook to join the NUM in an approach to us seeking a lower level of coal imports, the maintenance of a high level of public investment and subsidies comparable to those allegedly being paid by other governments to coal industries abroad. Far from acting as management might be expected to do, the NCB Board was behaving as if it entirely shared the interests of the union representing its employees. The situation quickly deteriorated further. I was lucky to have a private, independent and knowledgeable source of advice in my press secretary, Bernard Ingham who, before working for me in Downing Street, had spent some years in the Department of Energy and was convinced from the start that the department was far too complacent about the threat posed by a strike.

On Monday 16 February I had a meeting with David Howell and others. Their tone had entirely changed. The department had suddenly been forced to look over the abyss and had recoiled. The objective had now become to avoid an all-out national strike at the minimum cost in concessions. David Howell would have to agree to a tripartite meeting with the NUM and the NCB to achieve this. The tone of the NCB Chairman had also changed in short order. I was appalled to find that we had inadvertently entered into a battle which we could not win. There had been no forward thinking in the Department of Energy about what would happen in the case of a strike. The coal stocks piled at the pit heads were largely irrelevant to the question of whether the country could endure a strike: it was the stocks at the power stations which were important, and these were simply not sufficient. I had by now even less confidence in the NCB management. It became very clear that all we could do was to cut our losses and live to fight another day, when — with adequate preparation — we might be in a position to win. When my attitude became clear one official could not prevent himself expressing disappointment

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