§ Mr. GarnierTo ask the President of the Board of Trade if he will make a statement on the future of Annesley Bentinck colliery. [21001]
§ Mr. PageDiscussions with Coal Investments plc on its proposed acquisition of Annesley Bentinick are at an 333W advanced stage and we hope to complete the sale very shortly.
The bid has been subject to a detailed process of clarification and negotiation since Coal Investments was selected as preferred bidder in October 1994. Agreement has now been reached, subject to contract, that Coal Investments will acquire Annesley Bentinck colliery, which has been on care and maintenance since February 1994, for a nominal consideration of £1. Coal Investments will take over British Coal's substantial liabilities in relation to the colliery—for example, in relation to site restoration when production ceases. In order to conclude the transfer at the earliest opportunity so as to minimise the on-going costs currently being incurred by British Coal, the Government will pay Coal Investments a contribution of up to £270,000 towards continuing care and maintenance costs for a limited period.
The Department will shortly lay a minute before the House describing certain limited warranties which it proposes to give in relation to the sale.