HC Deb 30 March 1950 vol 473 cc83-4W
Mr. Hamilton

asked the Minister of Fuel and Power how much will have been paid to the former coalowners in compensation and interest on compensation by the time all such payments have been completed.

Mr. Noel-Baker

The aggregate compensation for the transferred interests having coal industry value was determined by arbitration in accordance with Section 10 (3) of the Coal Industry Nationalisation Act, 1946, and was fixed at £164,660,000. The compensation for subsidiary interests, which are quite substantial, is to be determined by the district valuation boards and its amount cannot be estimated. The amount of interest will depend upon the date of satisfaction in each case and upon the rates of interest prescribed by the Treasury from time to time, and cannot be estimated.

Mr. Hamilton

asked the Minister of Fuel and Power what machinery exists for a review of the amount of compensation payable to the former coalowners.

Mr. Noel-Baker

The relevant machinery is specified in the Coal Industry Nationalisation (Valuation of Compensation Units) Regulations, 1947 (S.R. & O. 1947 No. 1345). The machinery is in existence and working. The amount of compensation to be paid to the former owners is determined by the value of their transferred interests as certified to the Minister by the district valuation boards. The transferred interests are constituted into compensation units by the Minister and it is these units which are valued. The valuation boards first issue their valuation in draft to each party to the proceedings; each party may then request to be heard by the board. Having heard the parties (or at the end of a specified period if no hearing is asked for), the board issues a "determination" of value. Either party may then request this to be reviewed by one of a panel of independent referees; the referee may instruct the board to increase, decrease or leave unaltered its valuation and the referee's decision is final.

Referees are appointed by the Minister, but a request for a review is made direct by the party concerned to the chairman of the panel and he selects the referee. The district valuation boards and the referees are quite independent of the Ministry and of one another.