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The Coal Industry (Restructuring Grants) Order 1987

S.I. 1987/770 · Made 28 April 1987

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COAL INDUSTRY

Made 28th April 1987

Coming into force 30th April 1987

The Secretary of State, in exercise of the powers conferred upon him by section 3(2) and (3) of the Coal Industry Act 1987f1(a) and with the approval of the Treasury, hereby makes the following Order, a draft of which has been laid before the House of Commons and has been approved by that House in accordance with section 3(10) of that Act:—

Annotations to the whole text

Footnotes

f1

1987 c. 3.

Contents

  1. 1Article 1
  2. 2Article 2
  3. 3Article 3
  4. 4Article 4
  5. Signature
  6. Schedule KINDS OF EXPENDITURE
  7. Explanatory note

1

This Order may be cited as the Coal Industry (Restructuring Grants) Order 1987 and shall come into force on 30th April 1987.

2

In this Order, unless the context otherwise requires —

  • “the Act” means the Coal Industry Act 1987;

  • “the Corporation” means the British Coal Corporation or any wholly-owned subsidiary of theirs;

  • “employees” means employees of the Corporation;

  • “payments” means periodical or lump sum payments;

  • “the relevant consolidated profit and loss account” means any consolidated profit and loss account of the British Coal Corporation and their subsidiaries prepared in accordance with a direction given under section 8(1) of the Coal Industry Act 1971f1(b) for the financial year of the British Coal Corporation ending in March 1988;

and references to payments, contributions or expenditure are references to payments, contributions or expenditure by the Corporation.

3

The kinds of expenditure specified in the Schedule to this Order are specified kinds of expenditure for the purposes of section 3(2)(a) of the Act in relation to the financial year of the British Coal Corporation ending in March 1988.

4

The maximum amount which may be paid under section 3 of the Act by way of grant in respect of the financial year of the British Coal Corporation ending in March 1988 in relation to the kinds of expenditure specified under a Head in the Schedule is —

(a)

in the case of the expenditure specified under Head 4, £27,700,000; and

(b)

in the case of the expenditure specified under any other Head, that sum which represents three-quarters of —

(i)

the total amount of the costs of the Corporation which are related to the kinds of expenditure specified under the Head and which fall to be charged to the relevant consolidated profit and loss account; or

(ii)

if a larger amount has been agreed in respect of those costs for the purposes of section 3(2)(b) of the Act, that larger amount.

Signature

David Hunt

Parliamentary Under Secretary of State,

Department of Energy

27th April 1987

We approve,

Mark Lennox-Boyd

Michael Neubert

Two of the Lords Commissioners of Her Majesty’s Treasury

28th April 1987

KINDS OF EXPENDITURE

(i)

Payments in respect of redundant employees made under section 81 of the Employment Protection (Consolidation) Act 1978f1(a).

(ii)

Payments made for the purpose of assisting persons who leave the employment of the Corporation by virtue of redundancy or early retirement and expenditure on the provision of concessionary coal for that purpose, being payments made or expenditure incurred under arrangements established by the Corporation.

(iii)

Payments in respect of the loss of superannuation prospects by persons leaving the employment of the Corporation by virtue of redundancy or early retirement.

(iv)

Contributions to superannuation funds maintained by virtue of section 37 of the Coal Industry Nationalisation Act 1946f2(b) in respect of any increase in the cost of retirement benefits paid before normal retirement age to persons who leave the employment of the Corporation by virtue of redundancy or early retirement.

Explanatory note

(This note is not part of the Order)

This Order specifies the kinds of expenditure which may rank as eligible expenditure of the British Coal Corporation and their wholly-owned subsidiaries in relation to the Corporation’s financial year ending in March 1988 for the purpose of the power to make grants to the Corporation conferred on the Secretary of State by section 3 of the Coal Industry Act 1987 (grants for workforce redeployment and reduction etc.). The kinds of expenditure specified are set out in the Schedule to the Order.

Article 4 of the Order sets a limit on the amount which may be advanced in relation to the Corporation’s 1987/88 financial year with respect to each head of expenditure specified in the Schedule. In general the limit is three-quarters of the relevant costs appearing in the consolidated profit and loss account or three-quarters of such larger amount as may be agreed by the Secretary of State and the Corporation with the approval of the Treasury.