HC Deb 12 December 1980 vol 995 cc516-7W
Mr. Lee

asked the Secretary of State for Energy what adjustment, if any, he has made to the National Coal Board's external finance limit for 1980–81, as a result of the revised provision for social grants recently announced in the Winter Supplementary Estimates.

Mr. John Moore

Under section 8 of the Coal Industry Act 1980 the Secretary of State may pay up to £7 million to the NCB to enable the minimum compensation under the coal industry pneumoconiosis compensation scheme to be increased to £600. The National Coal Board will shortly invite applications for increased compensation and expects to pay out some £1 million in the remainder of the present financial year, with further payments in succeeding years. Provision for this amount to be reimbursed to the NCB is being sought in Class IV, Vote 9 of my Department's Winter Supplementary Estimates. The board's external financing limit has been increased by £1 million on this account.

The Redundant Mineworkers and Concessionary Coal (Payments Schemes) (Amendment No. 2) Order 1980 increased the lump sums available under the redundant mineworkers payments scheme. Section 7 of the Coal Industry Act 1980 allows for the scheme to be extended to cover certain employees made redundant in the coke industry. The National Coal Board's latest estimate is that around £3 million will be spent in the present financial year on these new and enhanced payments. Provision for this amount is being sought in Class IV, Vote 7 of my Department's Winter Supplementary Estimates. Since, as I explained in a written answer to my hon. Friend the Member for Falmouth and Camborne (Mr. Mudd)—[Vol. 935, c. 27–28]—the cost is to met by an equivalent reduction in the National Coal Board's net borrowing from the Government, a corresponding reduction of £3 million has been made in the board's EFL.

As a result of these provisions, and the consequential adjustments to the national Coal Board's EFL, the board's EFL for 1980–81 now stands at £832 million instead of £834 million as previously was the case.