HC Deb 17 January 1994 vol 235 cc381-2W
Mr. Aspinwall

To ask the President of the Board of Trade what conclusions he has reached about arrangements for the future of concessionary fuel entitlements after the privatisation of British Coal.

Mr. Eggar

In October, the Government published a consultation paper on proposals for future concessionary fuel arrangements after privatisation of British Coal. Comments were received from coal industry unions, other organisations and a number of individuals.

Careful consideration has been given to all responses to the consultation paper. In the light of these responses, the Government have decided to pursue the proposals which were set out in the consultation paper.

Responsibility for meeting the entitlements of former British Coal employees and their dependants would be transferred at privatisation to the Secretary of State. The Coal Industry Bill which was introduced into the House on 2 December would provide powers for the Secretary of State to make payments necessary for securing these entitlements. The total liability to be assumed by the tax-payer would be in the region of £1,500 million.

Responsibility for supplying concessionary fuel to employees transferred to successor companies would pass to those companies. The Coal Industry Bill would provide the powers for these transfers by means of restructuring schemes. The schemes would place a contractual obligation on successor companies to honour the concessionary fuel entitlements of persons transferred to their employment.

In order to achieve continuity in the administration of concessionary fuel entitlements, the Government have decided that the National Concessionary Fuel Office—NCFO—part of British Coal's pensions and insurance centre in Sheffield—PIC—should continue to administer such entitlements for at least four years after the main privatisation of British Coal. The PIC would be privatised within a year or so of the main privatisation.

As far as continuing employees are concerned, it would be for successor companies to ensure satisfactory administrative arrangements in respect of concessionary fuel entitlements of British Coal employees who transfer to their employment. If required, the NCFO would be able to provide a concessionary fuel administration service to successor companies.

The Government believe that these proposals meet in full their commitment to safeguard the entitlements of past and present employees of British Coal, and their dependants, to concessionary fuel or cash in lieu after privatisation.