HC Deb 22 December 1997 vol 303 cc521-2W
Mr. Clapham

To ask the President of the Board of Trade what was the cost of the Mineworkers' Concessionary Fuel Scheme for(a) 1995–96 and (b) 1996–97 and what is the projected cost for 1997–98; what is the projected cost of the scheme for the first year of operation based on the new arrangements; how many beneficiaries will be detrimentally affected by the new arrangements; and what is the projected saving to public funds of the new arrangements. [22275]

Mr. Battle

The cost of providing concessionary fuel and cash in lieu of fuel to all ex-employees of British Coal and their dependants, for which liability transferred to the Secretary of State on March 1995, was £85 million in 1995–96, and £87 million in 1996–97. The projected cost in 1997–98 is £85 million. These figures are affected by variations in the applicable rate of VAT, differential rates in the switching from fuel to cash in lieu from year to year, and the severity of the winters which affected the uptake of fuel. The cost in 1998–99 is expected to be in the range £73–77 million depending on the extent of further switching away from fuel to cash in lieu, and allowing for the lower rate of VAT on fuel. The saving in public funds from the new arrangements derives from the competitive prices secured on a range of smokeless fuel.

Beneficiaries who receive coal are unaffected by the new arrangements. Any adjustments in respect of anthracite are likely to be marginal. The entitlements of certain manufactured smokeless fuels will be reduced as a result of re-balancing but other entitlements will increase, and in virtually all cases where entitlements are reduced beneficiaries will have the option of switching to an alternative fuel which carries a higher entitlement. Thus, the vast majority of beneficiaries need be no worse off in terms of the quantity of fuel available to them, and many could be better off.

Mr. Clapham

To ask the President of the Board of Trade when the coal mining trade unions were informed of the proposed new arrangements to the Concessionary Fuel Agreement; and when the consultation period will end. [22233]

Mr. Battle

My Department wrote to the mining unions on 17 December explaining the new arrangements for concessionary fuel from March 1998, and proposed a meeting in the early New Year.