10.9.75 OfficialJournaloftheEuropeanCommunities NoL238/21
COMMISSION DECISION
of10July1975
authorizingtheUnitedKingdomtograntadditionalaidstocoalminingunder­
takingsinrespectofthe1973/74coalyearandauthorizingtheUnitedKingdom
tograntaidstocoalminingundertakings inrespectofthe1974/75coalyear
(OnlytheEnglishtextisauthentic)
(75/544/ECSC)
maintenanceworkonmachineryandthegeneralclear­
anceworkwhichwereusuallycarriedoutinovertime
werenotbeingdone;
Whereasfollowingtheendoftheovertimebanthere
wasatotalstrikelastinguntil11March1974which
causedafurtherlossinoutputof10millionmetric
tons;whereasafterthestriketheNCBinstallations
hadtobebroughtintoworkingorderagainatconsid­
erableexpense;
Whereasthefigureof£150millionbywhichthe
UnitedKingdomGovernmentrequestedpermission
toincreasetheaidwasonlyaprovisionalestimate;
whereastheactualadditionallosseswhichtheaidis
designedtocoveramounttoonly£130-7million
accordingtotheannualreportoftheNCBwhichhas
nowbeenpublished ;whereastheCommission can
thereforeauthorizeaidofonly£130-7millionto
covertheoperatinglosses;whereas,subjecttothe
above,themeasureiscompatiblewiththeprovisions
ofArticle9ofDecisionNo3/71/ECSC;THECOMMISSION OFTHEEUROPEAN
COMMUNITIES ,
HavingregardtotheTreatyestablishingtheEuropean
CoalandSteelCommunity ,andinparticularArticles
2,3,4and5thereof;
HavingregardtoCommissionDecisionNo3/71/
ECSC(')of22December1970onCommunityrules
forinterventions byMemberStatesforthebenefitof
thecoalindustry;
HavingregardtoDecisionNo73/287/ECSC(2)of25
July1973concerningcokingcoalandcokeforthe
ironandsteelindustryintheCommunity ,andin
particularArticle9(1)thereof;
HavingconsultedtheCouncil;
Whereason16October1974theCommission ofthe
EuropeanCommunities issuedDecisionNo74/612/
ECSC(3);whereasthatDecisionauthorizedtheaids
whichtheUnitedKingdomGovernmentproposed ,to
granttothecoalindustryforthe1973/74coalyearin
sofarastheyhadbeendealtwithandexaminedin
the'Memorandum onadditionalfinancialaidawarded
byMemberStatesin1973'(4);
Whereas,aswasstatedintheMemorandum (""),the
UnitedKingdomGovernmentproposedtograntaids
of£130-2milliontothecoalindustryunderDecision
No3/71/ECSC;
Whereasinawrittenapplicationdated20March1974
theUnitedKingdomGovernmentrequestedpermis­
siontoincreasetheaidsby£150millioninorderto
makeuptheoperatinglossescausedbystrikesinthe
1973/74coalyear;
Whereasfrom12November1973to11February
1974theBritishminersrefusedtodoovertime,which
ledtoafallinoutputofapproximately 10million
metrictons;whereasatthesametimethisconsider­
ablyimpededgeneraloperationsinthepits,sincetheWhereasanincreaseintheaidforthe1973/74coal
year,asrequestedbytheUnitedKingdomGovern­
ment,isnotlikelytohindertheproperfunctioningof
thecommonmarket;
Whereasthisviewissupportedbythefollowingfind­
ings:
—thegrantingofaiddidnotimpedetradeincoal
betweentheUnitedKingdomandtheother
Communitycountriesin1973.Becauseofthecoal
miners'strikeBritishindustryitselfriskedrunning
shortoffuel.Theuncertainties inthegeneral
energysupplysituationcausedbytheoilcrisisand
theminers'strikemeantthattheBritishmarket
wassuppliedmainlywithdomesticfuelsandthat
theNCB'spitheadstockscouldbereduced,
—in1973thepricesofcokingcoalandsteamcoal
intheUnitedKingdomdidnotleadtoindirect
aidsforindustrialusersofcoal;(')OJNoL3,5.1.1971,p.7.
(2)OJNoL259,15.9.1973,p.41.
(3)OJNoL335,14.12.1974,p.26.
(■»)Doc.SEC(74)1377fin,p.11/85.
;5)Doc.SEC(74)1377fin.,p.11/95.

NoL238/22 OfficialJournaloftheEuropeanCommunities 10.9.75
incurredbytheNCBisnolongerrelatedtocoal
productionandiscoveredpartlybytheaid;WhereastheCommission thereforeconsidersthatthe
proposedraisingoftheaidtotheBritishcoalmining
industryforthe1973/74coalyeartocoveroperating
lossesmayberegardedascompatiblewiththeproper
functioningofthecommonmarket; Whereasaidtowardsseverancepaymentsforminers
abouttobemaderedundantorforthevocational
retrainingofstaffwasintroducedbytheCoalIndustry
Act1965;whereastheCoalIndustryAct1973conti­
nuestheaidandmakesprovisionforpaymentofa
maximumof£60millionfortheyears1973/74to
1975/76;whereasfor1974/75provisionhasbeen
madeforasumof£5-8million;Whereas,inaddition,theUnitedKingdomGovern­
menthasinformedtheCommission underArticle2
ofDecisionNo3/71/ECSCoffinancialmeasures,
bothdirectandindirect,whichitintendstotake
duringthe1974/75coalyear(')forthebenefitofthe
coalindustry;whereasofthosemeasurestheaids
listedbelowrequireauthorizationundertheabove­
mentionedDecision ; Whereassuchaidisgrantedinrespectofminers
leavingminingasaresultofpitclosuresandofthose
beingretrainedand/orre-employedincoalmining;
WhereastheUnitedKingdomGovernmentproposes
tograntthefollowingaidstotheBritishcoalindustry
inthecourseofthe1974/75coalyear: Whereasthepurposeandformoftheaidshowthat
themeasuremeetsthecriterialaiddowninArticles
6(1)(1)and7(3)ofDecisionNo3/71/ECSC;in£million
13-8
WhereasaidtowardscoveringtheNCBsexpenditure
resultingfromtheearlyretirementofstaffwasintro­
ducedbytheCoalIndustryAct1967;whereasfor
1974/75provisionhasbeenmadeforanamountof£
3-7million;tocoverexpenditureresulting
fromtheretirementofstaff
forseverancepaymentsto
redundantminersand/orforthe
vocationalretrainingofstaff
tocovertheNCB'sexpenditure
resultingfromtheearlyretirement
ofstaff
tocoverexpenditureonthesupply
ofconcessionary coaltoredundant
minersagedfrom55to65
fortheadaptationandretentionof
staff
aidinrespectofpitheadstocks
tocovertheNCB'sestimated
operatinglossesduringthecoal
year1973/745-8
3-7
0-65
2-7
2-0
45-0Whereassuchaidisgrantedinrespectofminers
retiredprematurely ;whereassuchretirementwas
necessaryonaccountofthefallinproduction (asa
resultofmarketingdifficulties)duringtheyears1967
to1970;whereastheexpenditureonpensions
incurredbytheNCBisnolongerrelatedtocoal
productionandiscoveredinfullbytheaid;
Whereasfhepurposeandformoftheaidshowthat
themeasuremeetsthecriterialaiddowninArticle
6(1)ofDecisionNo3/71/ECSC;
Whereastheabovementioned aidsmeetthecriteria
laiddowninArticles6to9ofDecisionNo3/71/
ECSCinrespectoftheadmissibility ofsuchState
assistance ;WhereastheaidtowardscoveringtheNCBsexpendi­
tureonthesupplyofconcessionary coalisinrespect
ofexpenditurewhichisnolongerrelatedtocoal
production ;whereastheNCB'sexpenditureonthe
supplyofconcessionary coaltominersbetweenthe
agesof55and60maderedundantduring1974.is
reimbursedinfullbytheUnitedKingdomGovern­
ment,whileforminersmaderedundantbetweenthe
agesof60and65theaidwillcover50%ofthe
expenditureonthesupplyofconcessionary coal;
whereasfor1974/75theamountofaidprovidedforis
£650000;Whereasaidtowardscoveringtheexpenditure
resultingfromtheretirementofstaffwasintroduced
bytheCoalIndustryAct1973andmakesprovision
forpaymentofamaximumof£60millionforthe
years1973/74to1975/76;whereasfor1974/75provi­
sionhasbeenmadeforasumof£13-8million;
Whereassuchaidisgrantedinrespectofminerswho
haveretired;whereastheexpenditureonpensions
Whereasthepurposeandformoftheaidshowthat
themeasuremeetsthecriterialaiddowninArticle
6(1)(1)ofDecisionNo3/71/ECSC;(')The1974/75coalyearrunsfromthebeginningofApril
1974totheendofMarch1975.

10.9.75 OfficialJournaloftheEuropeanCommunities NoL238/23
Whereastheaidtowardstheadaptationandretention
ofstaffisasubsidytobepaidbytheUnitedKingdom
Government towardstheestimatedsumof£7-5
millionwhichtheNCBwillhavetospendin1974/75
ontheregroupingofstaffundertherationalization
programme ;whereas,inordertoensurethatqualified
personnelareretained,thecostsincurredbythe
minersaffectedbytheregroupmentschemesmustbe
reimbursedbytheNCB;whereassuchcostsinclude
removalandresettlementcosts,travelexpensesand
temporarylossofincome;
Whereasin1974/75theUnitedKingdomistocontri­
bute£2-7milliontowardssuchexpenditureincurred
bytheNCB;
Whereasthepurposeandformoftheaidshowthat
themeasuremeetsthecriterialaiddowninArticle
7(3)ofDecisionNo3/71/ECSC;
WhereasprovisionismadeintheCoalIndustryAct
foraidinrespectofpitheadstocks;whereaspursuant
tothatActtheUnitedKingdomGovernment
proposestogranttheNCBovertheyears1973/74to
1975/76asubsidyofuptoamaximumof£40
milliontowardsthecostofmaintainingpithead
stocks;whereasprovisionhasbeenmadefor£2-0
milliontobegrantedin1974/75;whereasaccording
toUKGovernmentestimatestheNCB'spithead
stocksofcoalandcokewillbytheendofMarch1975
exceedthelimitlaiddowninArticle8ofDecision
No3/71/ECSC;whereastheaidwouldthusmeetthe
criterialaiddowninthatArticle;Whereasin1974severalsmallunprofitablepitswere
closeddown;whereasnotonlylargepartsofthecoal
miningregionsbutalsootherpartsofthecountry
haveaweakeconomicstructure;whereastheoverall
unemployment figureisrelativelyhigh(about4%);
whereasforthesereasonsaccountmustbetakenof
regionalandsocialdifficultieswhenpitsareclosed
down;
Whereasitfollowsfromtheforegoingthattheaid
proposedforcoveringtheNCB'soperatinglossesin
the1974/75financialyearisinaccordancewiththe
provisionsofArticle9(1)(1)and(2)ofDecisionNo
3/71/ECSC;
Whereasitmustbepointedout,inaddition,thatthe
£45-0millionaidappliedforistobepaidoutonlyto
theextentoftheactualoperatinglossesoftheNCB;
whereastheaidisthereforeinaccordancewiththe
provisionsofArticle9(2)ofDecisionNo3/71/ECSC;
Whereasthefollowingremarksmustbemadein
respectofthecompatibility ofthetotalamountof
UnitedKingdomaidswiththeproperfunctioningof
thecommonmarket:
—in1974therewasnorestrictionoftradeincoal
betweentheUnitedKingdomandtheother
Communitycountries(Article3(1)(1)ofDecision
No3/71/ECSC),
—noalignmentsonthepricesofotherCommunity
producerswerenotifiedinrespectofBritishcoal
in1974,
—thepricesofcokingcoalandsteamcoalinthe
UnitedKingdomdidnotleadtoindirectaidsfor
industrialusersofcoalin1974,
—theclosureofunprofitablepitsleadstorationaliza­
tionandtheconcentration ofproductioninpits
whereproductivityishighest;
WhereasitcanthereforebesaidthatUnited
Kingdomaidstothecoalindustryarecompatible
withtheproperfunctioningofthecommonmarket;
Whereasthisalsoappliesifaccountistakenofaids
grantedtothecoalindustryunderDecisionNo
73/287/ECSC;
Whereas,underArticle11(1)ofDecisionNo3/71/
ECSCtheCommission mustensurethattheaidsauth­
orizedareusedforthepurposessetoutinArticles6
to9ofthatDecision ;whereastothisenditmustbe
informedinparticularoftheamountandapportion­
mentofsuchaids,Whereastheaid,amountingto£450million,
proposedbytheUKGovernmentinrespectofthe
periodfrom1January1974totheendofMarch1975
tocoverlossesmayberegardedasfulfillingthecondi­
tionslaiddowninArticle9ofDecisionNo3/71/
ECSC;
Whereasthecoveringofoperatinglossesforthe
1974/75coalyearrelatestolossessustainedincurrent
production ;whereastheCoalIndustryActprovides
foramaximumof£210millionforthispurposefor
thecoalyears1973/74to1975/76;whereasthesum
of£45-0millionhasbeenmadeavailableforthe
1974/75coalyear;
WhereasinviewofoilsupplydifficultiestheUnited
Kingdom'soverallenergysupplysituationisfarfrom
clear;whereasasharpincreaseincoalimportsisnot
possible;whereastheNCBisthereforeconcernedto
maintainproductionandthusavoidtheriskofan
energyshortage;

NoL238/24 OfficialJournaloftheEuropeanCommunities 10.9.75
HASADOPTEDTHISDECISION :
Article1
TheGovernment oftheUnitedKingdomishereby
authorizedtogranttotheBritishcoalindustryaddi­
tionalaidtotalling£130700000forthe1973/74coal
yearandaidstotalling£73650000forthe1974/75
coalyear.
Theamountof£130700000forthe1973/74coal
yearisintendedtocoveroperatinglosses.
Theamountof£73650000forthe1974/75coalyear
ismadeupasfollows:
1.Tocoverexpenditureresultingfromtheretirement
ofstaff(£13800000);
2.Severancepaymentstominersmaderedundantasa
resultofpitclosuresortominerswhoareretrained
and/orre-employedinthecoalindustry,uptoa
maximumof£5800000;
3.Reimbursement infulloftheNCB'sexpenditure
resultingfromtheprematureretirementofminers
(£3700000);
4.Assumptionofresponsibility forthecostsof
supplyingconcessionary coaltoredundantminers
agedbetween55and65,uptoamaximumof£
650000;5.SubsidytowardstheNCBsexpenditureonthe
regroupingofstaffundertherationalization
programme,uptoamaximumof£2700000;
6.Aidsinrespectofpitheadstocks(£2000000);
7.SubsidytowardstheNCB'sestimatedoperating
lossesinthe1974/75coalyear,uptoamaximum
of£45000000.
Article2
TheUnitedKingdomGovernmentshallsupplythe
Commissionby15November1975withparticulars
regardingtheaidsgrantedpursuanttothisDecision,
inparticulartheamountspaidandthemannerin
whichtheywereapportioned .
Article3
ThisDecisionisaddressedtotheUnitedKingdom.
DoneatBrussels,10July1975.
FortheCommission
ThePresident
François-Xavier ORTOLI