HC Deb 24 January 2001 vol 361 c627W
Mr. Clifton-Brown

To ask the Secretary of State for Trade and Industry what representations he has received on coal supply contracts that contain provisions for adjustment in coal prices in the event of state aid being paid; and if he will make a statement. [146752]

Mrs. Liddell

The UK coal operating aid scheme, as notified to the Commission on 26 July 2002, explained that subsidywill not be available in respect of any contracts which replace contracts that have been cancelled or re-negotiated because of Government policy on coal State aid unless that cancellation or renegotiation was expressly permitted by a clause in the existing contract.

In a letter dated 21 November 2000 to coal producers who have expressed an interest in the scheme (and published on the DTI website) www.dti.gov.uk/support/coal.htm, the Department also explained that: Any contract [signed on or after 1 January 2000] containing terms which are conditional or otherwise linked (in any way) to:

  1. (a) the 1PP to be determined by the Panel in respect of that particular contract;
  2. (b) the IPP to be determined by the Panel in respect of any other contract; or
  3. (c) the IPP published in respect of any other contract;
will automatically be disqualified from consideration under the UK Coal Operating Aid Scheme.

I have received no representations on either of these provisions, although there have been inquiries about how they will be operated.