§ Mr. HagueTo ask the President of the Board of Trade what is the present position with respect to licensing to the private sector pits which British Coal had planned to close.
§ Mr. HeseltineBritish Coal is statutorily responsible for licensing coal mining and must consider applications from responsible organisations seeking licences. Under present legislation, licensed coal mining is subject to statutory limits of 150 on the numbers employed underground in deep mines and 250,000 tonnes of coal from the areas specified in the licence for opencast sites.
Of the 31 pits which British Coal had intended to close, 10 are the subject of statutory consultations, which the corporation has made clear will be meaningful. I understand that the corporation does not propose entering into negotiations for the licensing of any of these pits before the consultations are complete.
The coal review is considering the prospects of the other 21 pits British Coal has proposed to close and which are not subject to the statutory consultations. I understand that British Coal does not propose to enter into commercial discussions about licensing any of these pits before that review is complete.
Licensing any of these pits while the review is continuing would be difficult in practice against the background of uncertainty about the future prospects for the industry and the market for coal. The review is considering the opportunities for the private sector in the production of coal. Its conclusions on this aspect will be included in the White Paper to be published early in the new year.
146WDecisions on any applications for licences to operate pits will be taken once the review and consultations are complete.