REDUNDANT MINEWORKERS AND CONCESSIONARY COAL (PAYMENTS SCHEMES) (AMENDMENT) ORDER 1975 (Hansard, 24 March 1975)

§ Lord LOVELL-DAVIS

My Lords, I beg to move that the Draft Redundant Mineworkers and Concessionary Coal (Payment Schemes) (Amendment) Order, 1975, be approved.

The coal industry is emerging from what has been an intensely difficult period for it. Between 1947 and the end of 1973–74, 870 collieries were closed or merged with others. This, together with improved working methods at the pits which continued to operate, led to a sizeable reduction in manpower requirements. It is to the credit of the National Coal Board and the unions that the rundown in manpower, unparalleled in any other sector of British industry, was managed with so little disturbance to industrial relations. Today the industry faces a brighter future, and since March of 1974 the rate of recruitment has risen while the rate of wastage has been lower than in previous years. For the first time for more than a decade recruitment will more than replace the number of men leaving the industry.

In the Coal Board's Plan for Coal, to which the Government gave its general approval last year, the Board forecast that average recruitment would have to reach 28,000 a year if targets were to be met. It seems that we may confidently expect that position to be reached during the year 1974–75. However, while the future prospects of the industry have changed dramatically, and more men have a secure future than they had before, there will still be unavoidable closures of exhausted collieries and perhaps of some collieries which, despite the changed position of coal, will remain or will become grossly uneconomic. Some men will, therefore, continue to be made redundant from their existing jobs.

The Redundant Mineworkers' Scheme, which the Order we are discussing amends, has played and continues to play a vital role in cushioning from the effects of redundancy workers who, often after many years of employment in it, have had to leave this highly specialised and vitally important industry.

1082 The Redundant Mineworkers' Payment Scheme gives mineworkers who become redundant at the age of 55 or over a weekly sum of money which, when added to other state benefits, gives them, after allowing for the effects of tax, an income equal to about 90 per cent. of their previous takehome pay during the first three year of their redundancy or until they reach the age of 65, if that is earlier. This weekly sum—the basic benefit—is set out in the tables at Appendix 4 of the Redundant Mineworkers' and Concessionary Coal (Payment Schemes) Order 1973, and it represents the amount which, when added to unemployment benefit, gives the intended level of 90 per cent. of pre-redundancy earnings. Clearly, therefore, if the level of benefit is to remain at 90 per cent. for new beneficiaries entering the Scheme it is necessary to adjust the basic benefit each time the level of unemployment benefit changes.

I should make clear that the Order which we are discussing makes no basic change in the Scheme. It is made necessary simply in order to take into account the increase in unemployment benefit which the Government are introducing on 7th April. When the Order was made, it was not anticipated that there would be an increase in April between the customary autumn reviews. We are also taking this opportunity to extend the table to take in pre-redundancy earnings of up to £70 per week, since the present limit of £50 per week is now too low, in view of recent increases in mineworkers' wages. So far as reemployment is concerned, a worker who is a beneficiary under the Scheme but during the first three years of benefit is reemployed in the coal industry, has his payments under the Scheme suspended. If he then becomes redundant a second time the payment of benefit is resumed and continues for the balance of the three years. However, he can elect to substitute the date of his second redundancy as his relevant date for the purpose of calculating his pre-redundancy earnings. This will bring his benefit into line with his wages at the end of his second redundancy. The purpose of the amendment to Article 6(5) is to provide a method of calculating this benefit, taking account of the April change in unemployment benefit. Finally, my Lords, there were two small technical omissions 1083 in the 1973 Order and these are being repaired by inserting references to the Interpretation Act 1889 and the Housing (Financial Provisions) (Scotland) Act 1972. My Lords, I beg to move.

Viscount LONG

My Lords, I thank the noble Lord, Lord Lovell-Davis, for his long statement on this Order which was most informative. Regarding the Order's implications, I gather that it is to improve the scale of redundancy payments on 6th April 1975. I think the noble Lord referred to 7th April, so presumably the Order operates from that day. We on this side believe that redundancies in mines need to be looked at carefully in relation to redundancy payments. Mines have been closing down for some years now and those which are still operating do so with modern machinery. It is important that those skilled men who are becoming redundant, many of whom will have worked in the mines all their lives, should receive proper redundancy payments. Therefore, this Order should go through. There is not a lot of time if it is to become effective from 6th April, and we on this side of the House do not wish to delay the Order. We feel that miners who are made redundant, whatever their age, but especially the older ones, should receive these payments. We have no grievances here; our only desire is to hurry up the passing of the Order to ensure that those in this industry who are likely to be out of a job receive this redundancy pay.