British Coal (Licensing) (Hansard, 29 June 1989)

§ Sir John Stanley
To ask the Secretary of State for Energy if he will list the operators of private coal mines currently licensed by British Coal.

§ Mr. Michael Spicer
This is a matter for the British Coal Corporation and I have asked the chairman to write to my right hon. Friend.

§ Sir John Stanley
To ask the Secretary of State for Energy (1) what principles he expects to be reflected in British Coal's statement of its licensing policy and practice in relation to the private mining sector referred to in his reply to the right hon. Member for Tonbridge and Mailing on 3 November,Official Report, column 708;
(2) when British Coal's statement on its licensing policy and practice in relation to the private mining sector referred to in his reply to the right hon. Member for Tonbridge and Mailing on 3 November, Official Report, column 708, will be finalised;
(3) whether he will place in the Library a copy of British Coal's statement on its licensing policy and practice in relation to the private mining sector when it is finalised.
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§ Mr. Michael Spicer
British Coal's statement of licensing policy and practice has now been finalised, and I am today arranging for a copy to be placed in the Library of the House.
The statement represents the furthest that the corporation considers it can go towards greater flexibility and transparency towards the licensed sector within the constraints imposed by the Coal Industry Nationalisation Act 1946. It describes the criteria the corporation will use for assessing licence applications, and sets the target of processing applications within three months and of indicating objections at an earlier stage if possible. In addition, although a system of external appeal against licence rejection would not be consistent with the 1946 statute, British Coal is instituting internal arrangements along the same lines.
British Coal has reaffirmed its undertaking to set royalties at levels that will permit efficiently managed operations to develop their business profitably, and to reduce royalties for new licences in any case where accounting evidence is provided which demonstrates that profit expectations would otherwise be cut to unreasonably low levels. The corporation has also offered to discuss an increase in the licence period, which may facilitate licensees' mine planning and financial arrangements.
The statement confirms that it is not British Coal's policy to refuse a licence solely on the ground that it is already adequately supplied. It recognises the importance to licensed mines of reasonably assured markets for their coal, and supports the endeavours of licensed operators supplying on a continuing basis to obtain terms which properly reflect this.
British Coal has agreed to prepare annual reviews of developments in the licensed sector, together with brief summaries each six months. I will ensure that copies of these reviews will he placed in the Library of the House.