§ Adam PriceTo ask the Secretary of State for Trade and Industry if he will make a statement on the assistance given by the Department in respect of redundancies at the Selby coal complex; and what the redundancy terms are. [125238]
§ Mr. TimmsOn 16 July 2002 my right hon. Friend the Secretary of State for Trade and Industry announced the Government's intention to pay £10 million to UK Coal plc to support redundancy payments arising from the announced closure of the Selby coal mine complex in North Yorkshire by spring 2004, with the loss of approximately 2,000 jobs. The Government is providing this support as aid to cover exceptional costs under Article 7(2) and 7(3) of the Council Regulation on State aid to the coal industry. The European Commission22W gave formal approval to the state aid on 27 May 2003. A first instalment of £1.8 million was paid to UK Coal in June. The assistance will allow UK Coal to extend pre-privatisation redundancy terms to affected employees until March 2005.
The Government have also set up a regeneration programme for the local area, implementing the agreed recommendations of the report by Lord Haskins, Chairman of the Selby Coalfield Task Force.