HC Deb 21 October 1986 vol 102 cc759-60W
Mr. Mason

asked the Secretary of State for Energy if he will specify the terms of the new redundancy payments scheme for coalminers operative from March 1987; and if he will make a statement.

Mr. David Hunt

Redundancy terms for coalminers following the end of British Coal's current financial year are a matter for British Coal. The chairman announced on 7 October that a scheme will be introduced offering lump sum payments based on £700 for every complete year of aggregate service from age 30, £450 for such service between ages 21 to 29 and £250 between ages 16 to 20, plus concessionary coal or cash in lieu for those between the ages of 50 and 59 on redundancy. He confirmed that future redundancies would continue to be on a voluntary basis. The terms compare very favourably with other industries.

Mr. Mason

asked the Secretary of State for Energy how many coalmines have closed down since May 1979; and how many miners have left the industry in that time, specifying numbers of surface and underground workers.

Mr. David Hunt

Since the end of May 1979 there have been 79 pit closures. This figure excludes mergers. During the same period, (up to 4 October 1986), 81,550 underground workers and 25,247 surface workers left the industry.

Mr. Mason

asked the Secretary of State for Energy what are the latest prospects of the National Coal Board reaching a financial break-even point by 1988–89; and if he will make a statement.

Mr. David Hunt

British Coal has every expectation of achieving break-even by 1988–89.

Mr. Mason

asked the Secretary of State for Energy how many coalminers have left the coal industry since March 1985; on what basis; and how much has been paid out in redundancy pay, both in cash grants and enhanced pension payments.

Mr. Peter Walker

Between the end of March 1985 and 3 October 1986 approximately 49,000 mineworkers left the industry on voluntary redundancy under the redundant mineworkers payments scheme. Payments under the scheme in respect of this group have so far totalled some £600 million. The cost of premature and enhanced pensions to those leaving under RMPS is reimbursed by the Government, under section 4 of the Coal Industry Act 1977, by stage funding over 10 years. The first staged funding payment, in relation to those who left in 1985–86, amounted to approximately £51 million. I am pleased to say that production is currently running at the same level as in 1983–84, before the strike.