HC Deb 16 May 1994 vol 243 cc298-9W
Mr. Clapham

To ask the President of the Board of Trade (1) what discussions he has had with British Coal about the proposal to contractualise the basic element of the current British Coal redundancy scheme;

(2) what discussions he has had with British Coal about the proposed employment package which is currently being put to the mining unions.

Mr. Eggar

Both my right hon. Friend the President of the Board of Trade and I meet the chairman of British Coal as necessary to discuss a variety of coal industry matters.

Mr. Clapham

To ask the President of the Board of Trade who will guarantee the contractualised redundancy scheme in the event of a colliery business failure after privatisation of the coal industry.

Mr. Eggar

The Government, through the statutory redundancy payments scheme, ensure that all qualifying redundant employees receive a basic level of compensation. Where employers are unable to pay, for example in the case of receivership, this payment is met by the Department of Employment.

Any redundancy arrangements after the privatisation of British Coal in excess of the statutory requirements will be a matter for private sector employers. Where employees are transferred to a new employer and the Transfer of Undertakings (Protection of Employment) Regulations 1981 apply, the new employer will take on contractual obligations which exist at the time of transfer.