Explanatory note

This Order concerns the making of grants by the Secretary of Stateto the British Coal Corporation under section 3 of the Coal Industry Act1987 (grants for workforce redeployment and reduction, etc.).

Article 3 specifies the financial year of the Corporation ending inMarch 1992 as a year in respect of which such grants may be made.

Article 4 provides for the kinds of expenditure incurred by theCorporation and their wholly-owned subsidiaries National FuelDistributors Limited and British Coal Enterprise Limited which arespecified in the Schedule to the Order to rank as eligible expenditurefor the financial year.

Article 5 sets a limit on the amount which may be advanced inrelation to the financial year with respect to each head of expenditurespecified in the Schedule. The limit is 90 per cent. of the relevantcosts appearing in the consolidated profit and loss account or 90 percent. of such larger amount as may be agreed by the Secretary of Stateand the Corporation with the approval of the Treasury.

Article 6 increases the limit on the aggregate amount of grantswhich may be made from £1,250 million to £1,500million.