1987 No. 770
The Coal Industry (Restructuring Grants) Order 1987
Made
Coming into force
The Secretary of State, in exercise of the powers conferred upon him by section 3(2) and (3) of the Coal Industry Act 19871(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:—
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 19712(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.
We approve,
SCHEDULEKINDS OF EXPENDITURE
Head 1 : Redundancy and early retirement
i
Payments in respect of redundant employees made under section 81 of the Employment Protection (Consolidation) Act 19783(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 19464(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.
Head 2 : Changes of work and place of employment
v
Payments to or for the benefit of employees in connection with their removal or resettlement (with or without their dependants) by virtue of their place of employment being changed.
vi
Payments to local authorities and housing associations for the provision of housing for employees on account of their place of employment being changed.
vii
Expenditure on providing travel allowances or transport for employees on account of their place of employment being changed.
viii
Payments made to supplement temporarily the earnings of employees on account of their place of employment being changed.
ix
Payments made to compensate employees temporarily for any reduction in their earnings resulting from the nature of their work being changed.
Head 4 : Concessionary Coal
x
Expenditure on the provision of concessionary coal, or on the making of payments in lieu thereof, to former employees who have reached normal retirement age or to their dependants, being expenditure made in accordance with arrangements established by the Corporation on or before 5th March 1987.
Head 5 : Retraining
xi
Expenditure on the provision of retraining for persons who are to leave or have left the employment of the Corporation by virtue of redundancy or incapacity, being retraining provided under arrangements established by the Corporation.
Head 6 : New employment
xii
Payments made under arrangements for the British Coal Corporation to re-imburse their wholly-owned subsidiary British Coal Enterprise Limited for losses incurred by it in promoting new employment in coal mining areas or new employment for such persons as are mentioned in paragraph (xi) above (whether in such areas or elsewhere).
(This note is not part of the Order)