§ Mr. IllsleyTo ask the President of the Board of Trade (1) what restrictions are placed upon British Coal by the Government to ensure that compensation claims are settled within a set budget; [22188]
(2) what budgetary constraints are placed upon British Coal to settle multiple compensation claims within a set of financial limits. [22187]
§ Mr. BattleUnder the standard arrangements for nationalised industries, British Coal's financial budget is governed by the External Financing Limit (EFL) notified by the Department to Parliament. The EFL is then closely monitored by the Department to ensure that total expenditure is properly managed by the Corporation.
Expenditure associated with any compensation awards that have been fully established, either by a Court or by an admission of liability by British Coal, are expected to be accommodated within the EFL for any one year in question. Any change to the EFL is based upon consideration of the total financing requirements of the Corporation, rather than on a particular category of expenditure.
It is intended that responsibility for British Coal health liabilities will transfer to the Department at the end of 1997.