NoL335/26 OfficialJournaloftheEuropeanCommunities 14.12.74
COMMISSION
COMMISSION DECISION
of16October 1974
approving aidsfromtheUnitedKingdomforthefinancialyear1973/74forthebenefit
ofundertakings inthecoalindustry
(OnlytheEnglishtextisauthentic )
(74/612/ECSC)
in£1000000
Tocoverexpenditure onpensions 19-8
Forseverance payments toredundant
minersand/orforthevocational retraining
ofstaff 10-0
TocovertheNCB'sexpenditure resulting
fromtheearlyretirement ofstaff 4-5
Tocoverexpenditure onthesupplyof
concessionary coaltoredundant miners
agedfrom55to65years 0-4
Fortheretraining andretention ofstaff3-7
Aidinrespectofpitheadstocks 3-7
TocovertheNCB'sestimated operating
lossesduringthe1973/74coalmarketing
year 75-0
Aidinrespectofcoalforpowerstations ±15-4THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishing the
European CoalandSteelCommunity ,andin
particular Articles2,3,4and5thereof ;
HavingregardtoCommission DecisionNo3/71/
ECSC(*)of22December 1970onCommunity rules
forinterventions byMemberStatesforthebenefitof
thecoalindustry ;
HavingregardtoDecisionNo73/287/ECSC(2)of
25July1973oncokingcoalandcoke,andin
particular Article9(1)thereof;
HavingconsultedtheCouncil ;
Whereas theBritishGovernment hasinformed the
Commission ,pursuanttoArticle2ofDecisionNo
3/71/ECSC,ofthefinancial measures whichit
proposed toimplement directlyorindirectly forthe
benefitofthecoalindustryduringthe1973/74coal
marketing year(3);whereasofthesemeasures the
following aidsrequireapproval pursuant tothe
aforementioned Decision ;
WhereastheBritishGovernment proposes togrant
totheBritishcoalindustrythefollowing aidsfor
the1973/74coalmarketing year:Whereas theaforementioned aidsareinaccordance
withthecriterialaiddowninArticles 6to9of
DecisionNo3/71/ECSCfortheadmissibility of
suchStateassistance ;
Whereasaidtowardsthecoveringofexpenditure on
pensionswasintroduced bythe1973CoalIndustry
Act,whichmakesprovisionforamaximum payment
of£60millionforthefinancialyears1973/74to
1975/76;for1973/74provision hasbeenmadefor
afirstinstalment of£19-8million;(*)OJNoL3,5.1.1971,pp.7etseq.
(2)OJNoL259,15.9.1973,p.41.
(3)The1973/74coalmarketing yearsrunsfromthe
beginning ofApril1973totheendofMarch1974.

14.12.74 OfficialJournaloftheEuropeanCommunities NoL335/27
Whereassuchaidisgrantedtoretiredminers;
WhereasthepensionsgrantedbytheNCBarenot
relatedtotheproduction ofcoalandarecoveredin
partbytheaid;
Whereasthepurposeandformoftheaidshowthat
themeasureisinaccordance withthecriteriasetout
inArticle6(1)(1);
Whereasaidtowardsseverancepayments forminers
abouttobemaderedundant and/orforthe
vocational retraining ofstaffwasintroduced bythe
1965CoalIndustryAct;whereastheCoalIndustry
Actof1973continuestheaidandmakesprovision
forpaymentofamaximum of£60millionforthe
financialyears1973/74to1975/76;whereasfor
1973/74provision hasbeenmadeforafirst
instalment of£10million;
Whereassuchaidisgrantedinrespectofminers
leavingminingasaresultoftheclosureofpits,
andalsoofthosebeingretrainedand/orre-employed
incoalmining;
Whereasthepurposeandformoftheaidshowthat
themeasure isinaccordance withthecriteriasetout
inArticle6(1)(1)and7(3)ofDecisionNo3/71/
ECSC;
WhereasaidtowardsthecoveringoftheNCB's
expenditure resultingfromtheearlyretirement of
staffwasintroduced bythe1967CoalIndustryAct;
whereasfor1973/74provision hasbeenmadefor
afirstinstalment of£4-5million;
Whereas suchaidisgrantedtominersretired
prematurely ;whereassuchretirement wasnecessary
onaccountofthedropinproduction (asaresult
ofmarketing difficulties )in1967/70;whereasthe
expenditure onpensionsincurredbytheNCBis
notrelatedtotheproduction ofcoalandiscovered
infullbytheaid;
Whereasthepurposeandformoftheaidshowthat
themeasure isinaccordance withthecriteriasetout
inArticle6(1)ofDecisionNo3/71/EEC;
WhereastheaidtowardsthecoveringoftheNCB's
expenditure onthesupplyofconcessionary coalto
redundant minersisgrantedinrespectofexpenditure
whichisnotrelatedtotheproduction ofcoal;
whereastheNCB'sexpenditure onthesupplyof
concessionary coaltominersbetweentheagesof
55and60maderedundant during1973isfully
reimbursed bytheBritishGovernment ,uptothe
ageof60,whilethereafter ,andforminersmade
redundant betweentheagesof60and65,theaid
istocover50%oftheexpenditure onthesupplyofconcessionary coal;whereastheamountofaid
providedfor1973/74is£400000;
Whereasthepurposeandformoftheaidshowthat
themeasure isinaccordance withthecriteriasetout
inArticle6(1)(1)ofDecisionNo3/71/ECSC;
Whereastheaidtowardstheretraining andretention
ofstaffisasupplement tobepaid'bytheBritish
Government tohelptocovertheestimated sumof
£7-5millionwhichtheNCBwillhavetospendon
theregrouping ofstaffwhichwillberequiredaspart
oftherationalization programme ;Whereas,inorder
toensurethatqualifiedworkersareretained,the
costsfallingontheminersaffected bythe
regroupment schemesmustbereimbursed tothem
bytheNCB;whereassuchcostsincluderemoval
costs,resettlement costs,travelexpenses and
compensation foratemporary lossofincome;
Whereas theBritishGovernment istocontribute
£3-7milliontowardssuchcoststobeborneby
theNCBinrespectof1973/74;
Whereasthepurposeandformoftheaidshowthat
themeasure isinaccordance withthecriteriasetout
inArticle7(3)ofDecisionNo3/71/ECSC;
Whereasprovision ismadeforaidinrespectof
pitheadstocksindie1973coalindustryAct;whereas
theBritishGovernment thereforeproposestogrant
theNCBasupplement fortheyears1973/74and
1975/76tocoverthecostofmaintaining pithead
stocks,uptoamaximum of£40million;whereas
provision hasbeenmadeforaninitialsumof
£3-9milliontobegrantedfor1973/74;
Whereasthepurposeandformoftheaidshowthat
themeasure isinaccordance withthecriteriasetout
inArticle8ofDecisionNo3/71/ECSC;
Whereastheaid,amounting to£90-4million,
proposedbytheBritishGovernment inrespectofthe
period31March1973totheendofMarch1974
tocoverlosses (including£75milliontocover
operating lossesinthe1973/74coalmarketing year
and£15-4millionasaidinrespectofcoalfor
powerstations )canberegardedascompatible with
theprovisions ofArticle9ofDecisionNo3/71/
ECSC;
Whereasthecoveringofoperating lossesforthe
1973/74coalmarketing yearrelatestolosses
sustained incurrentproduction ;whereastheCoal
IndustryActprovidesforamaximum of£210
millionforthecoalmarketing years1973/74and

NoL335/28 OfficialJournaloftheEuropeanCommunities 14.12.74
Whereas calculations revealthatthetotalBritish
aids,including thoseoutsidetheframework of
Article4ofDecisionNo3/71/ECSC,willamount
to£151-8million(=303-6u.a.=2-33u.a./metric
ton);whereascompared toallotherCommunity
countriestheproposed aidfortheBritishcoal
industryisthelowestpermetrictonproduced ;
Whereasthefollowing remarksmust 'bemadein
respectofthecompatibility ofthetotalamountof
Britishaidswiththeproperfunctioning ofthe
commonmarket :
—thecompatibility ofthetonnageforecastsdrawn
upfortheBritishcoalindustryfor1973with
theCommunity 'soverallsupplypositionin
respectofcoalandcokeisinaccordance with
theprovisions ofArticle3(1)(1)ofDecision
No3/71/ECSC;
—thegrantofaiddoesnotmeanthatany
restriction ofthetradeincoalbetween the
UnitedKingdom andtheotherCommunity
countrieshasbeenmadefor1973(Article3(1)
(1)ofDecisionNo3/71/ECSC);
—pricealignments tomeetthoseofotherproducers
intheCommunity havenotbeennotifiedtothe
Commission for1973inrespectofBritishcoal;
—thepricesofBritishcokingcoalandsteamcoal
donotamounttoindirectaidtoindustrial
consumers ofcoal;
—theclosureofunprofitable pitsleadsto
rationalization andtheconcentration of
production onpitswhereproductivity is
highest;1975/76-,whereas theinitialpayment already
authorized amountsto£75million;
Whereasaidinrespectofcoalforpowerstationsis
grantedtotheNCBbythe1973CoalIndustryAct
andrelatestosupplementary quantities ofcoal
purchased byBritishpowerstations;whereasthe
1973CoalIndustryActprovidesprovisionally for
amaximum of£50millionofaidtobegranted
fortheperiod1973/74to1975/76-,whereastheinitial
sumfor1973/74is£15-4million;
Whereastheincreasedproduction in1973compared
to1972(approximately +20millionmetrictons)
canbeattributed nottothegrantofaidstocover
lossesbutto'catching ,up',asasharpdeclinein
production occurredin1972asaresultofstrikes;
Whereas in1973,17smallpitswithanannual
production capacityofapproximately 1-3million
metrictonswereclosed;whereassuchclosures
affectedapproximately 8000employees ;whereasif
thefurther8000personswhowillprobably be
maderedundant asaresultofrationalization are
addedtothisfigure,thetotalnumberofpersons
maderedundant in1973comestoapproximately
16000;
Whereasnotonlylargepartsofthecoal-mining
regionsbutalsootherpartsofthecountryhave
aweakeconomic structure ;whereasarapidre­
structuring isnotpossibleatpresent;
Whereas ,inviewofthissituationitisclearthatif
theNCBhadtoceaseitsactivities anddismiss
overnightmorethan300000employees ,whosejobs
itatpresentprovides,insurmountable regionaland
socialdifficulties wouldarise;whereasinviewof
thesecircumstances .itfollowsthatthecoveringof
operating lossesisinaccordance withtheprovisions
ofArticle9(1)(1);
Whereasitmustbepointedout,furthermore ,that
theaidtocoverlossesontheoperation ofmines
doesnotexceedtheestimated overalloperating
losses;whereastheaidistherefore inaccordance
withtheprovisions ofArticle9(2)ofDecision
No3/71/ECSC;Whereas itcantherefore besaidthattheBritish
aidsforthebenefitofthecoalindustryare
compatible withtheproperfunctioning ofthe
commonmarket;
Whereasthisalsoappliesifaccountistakenofaids
grantedtothecoalindustryunderDecisionNo
73/287/ECSC;
Whereasanexamination ofthecompatibility ofthe
Britishaidwiththeproperfunctioning ofthe
commonmarket (Article3(1)ofDecisionNo
3/71/ECSC)mustrelatenotonlytotheaidsprovided
forinthisDecision butalsotoallotherfinancial
measuresforthebenefitoftheBritishcoalindustry
(Article3(2)ofDecisionNo3/71/ECSC);Whereas ,pursuanttoArticle11(1)ofDecision
No3/71/ECSC,theCommission mustensurethat
theaidsauthorized areusedforthepurposesset
outinArticles6to9ofthatDecision ;whereasthe
Commission mustbeinformed inparticular ofthe
amountandapportionment oftheseaidsandthe
mannerinwhichtheyareapportioned ,

14.12.74 OfficialJournaloftheEuropeanCommunities NoL335/29
7.supplement tocovertheNCB'sestimated losses
onmineoperations duringthe1973/74coal
marketing year,uptoamaximum of
£75million;
8.paymenttotheNCBofaidforpowerstation
coalinrespectofsupplementary quantities of
coalpurchased bytheBritishpowerstations,up
tobutnotexceeding amaximum of£15-4
million .HASADOPTED THISDECISION :
Article 1
TheGovernment oftheUnitedKingdom ishereby
authorized tograntthefollowing aidsforthebenefit
oftheBritishcoalindustryfor1973/74:
1.assumption ofresponsibility forexpenditure on
pensionsforretiredminers(£19-8million);
2.severance payments tominersmaderedundant
asaresultoftheclosureofpitsand/orforminers
toberetrainedorre-employed ,uptoamaximum
of£10million;
3.reimbursement infulloftheNCB'sexpenditure
resultingfromtheearlyretirement ofminers
(£4-5million);
4.assumption ofresponsibility forthecostsof
supplying concessionary coaltoredundant miners
agedbetween55and65years,uptoamaximum
of£400000;
5.supplement tocovertheNCB'sexpenditure on
theregrouping ofstaffwhichwillberequired
aspartoftherationalization programme ,upto
amaximum of£3-7million;
6.supplement tocoverthecostofmaintaining
pithead stocks,uptoamaximum of
£3-7million;Article2
TheBritishGovernment shallnotifytheCommission
by30November 1974ofthedetailsoftheaids
grantedpursuanttothisDecision,andinparticular
asregardstheamountspaidandthemannerin
whichtheyareapportioned .
Article3
ThisDecisionisaddressedtotheUnitedKingdom .
DoneatBrussels,16October1974.
FortheCommission
ThePresident
Francois-Xavier ORTOLI