§ Yvette CooperTo ask the President of the Board of Trade what arrangements she has made to ensure the continued supply of concessionary fuel to ex-employees of British Coal. [21817]
§ Mr. BattleMy Department took over liability to supply concessionary fuel to ex-employees of British Coal in March 1995. Contracts were placed then with two companies to supply and deliver concessionary fuel over the period from March 1995 up to March 1998.
Following a competitive tender, two-year contracts have recently been awarded to T. H. Fergusson Ltd. in Scotland and Coal Products Distribution Ltd. in England and Wales, to take effect from 30 March 1998. Both companies already supply and deliver solid fuel to other domestic customers.
All fuel supplied will continue to be of high quality and approved for use by HETAS, the solid fuel industry's Heating and Testing Approvals Scheme.
My Department's agents, the National Concessionary Fuel Office (NCFO), will continue to administer the concessionary fuel service, handling all inquiries and claims about entitlements from the beneficiaries.
Because European law on public procurement requires one manufacturer not to be favoured over another, and because fuel prices have changed in relation to each other and the mix of fuels bid into the tender is different from the last tender, it will be necessary to revise the entitlement levels for some brands of manufactured smokeless fuels to ensure that cost of supplying fuel to each beneficiary is equivalent. Higher prices for some brands means this rebalancing will reduce annual entitlements from present levels for those beneficiaries who receive those brands. However, all beneficiaries will have the opportunity either to remain with those brands or to switch to broadly equivalent fuels which will generally provide the same or higher entitlements. Anyone switching to a cheaper brand will receive more than they receive at present.
No-one need change from the fuel they receive now. No-one will be made to change, everyone will be able to make their own decision. Fuller details are being provided to the mining unions this month and to the recipients of concessionary fuel early in the New Year so that they can make their wishes known and stocks can be ordered.