ARCHIVESHISTORIQUES
DELACOMMISSION
COLLECTION RELIEEDES
DOCUMENTS "COM"
COM(82)817
Vol.1982/0248

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COMMISSION OFTHEEUROPEAN COMMUNITIES
COM(82)817 final
Brussels-10December1982
••/"/*-<--uv
MEMORANDUM
ONTHEFINANCIAL AIDAWARDEDBYTHEMEMBERSTATES
TOTHECOALINDUSTRYIN1982
(Communication fromtheCommissiontotheCouncil)
C0MC82)817final

TABLEOFCONTENTS
CHAPTER I
Introduction
CHAPTERII
Thesituation inthecommonmarketforcoalin1982andthe
trendsinfinancial aidtothecoalindustry
1.Thesituation inthecommonmarketforcoal
2.Thefinancial situation ofthecoalindustryinthe
Community
3.Thefinancial aidsgrantedbytheMemberStatestothe
coalindustryin1982
4.Compatibility ofthefinancial aidsplannedfor1982
withtheproperfunctioning ofthecommonmarket
CHAPTERIII
Conclusions
Annex
Surveyoffinancial sidsplannedfor3.952andexamination oftheircompatibility withtheprovisions ofDecision 528/76
I.Aidsnotrelatedtocurrentproduction
II.Financial aidsrelating tocurrentproduction
Tables

CHAPTER I
I
INTRODUCTION
1.This Memorandum examines theMember States' planned financial aids tocoal-
mining for1982 toseewhether they arecompatible with Commission Decision
No528/76/3CSC andwith theproper functioning ofthecommon market .
2.The1982 Memorandum follows thesame pattern asthat oftheprevious year .
Themain section isdevoted tothe economic and financial problems ofunder­
takings andtothecompetitive situation inthe coal market .Inthe light of
these data ,thecompatibility oftheaids tocurrent production with the
proper functioning ofthecommon market isexamined inaccordance with
Article 3(l)ofDecision No528/76.Theannex lists theindividual measures
andexamines their compatibility with theother provisions oftheDecision .
3.Pursuant toArticle 2ofDecision No528/76,theCommission received information
regarding aidmeasures for1982 from theGovernments ofthefollowing States :
(a)theGerman Government ,inletters dated 24November 1981 and9March 1982 ;
(b)theFrench Government ,inaletter dated 12May1982 ;
(c)theUnited Kingdom Government ,inaletter dated 13April 1982 ,and
(d)theBelgian Government ,inaletter dated 8June 1982 .
4.Astheabove dates show ,theMember Staes were late insending information
for1982 ,forunder Article 2oftheDecision theCommission should have been
notified by1November 1981 .Thedelays were duetothedifficulties of
OJNoL63of11March 1976 ,p.l

2.
forecasting coal-mining'srevenuepositionfor1982,whichprovidethebasis
forcalculating thelevelofsubsidylastyear.1981sawfairlymarkedprice
fluctuations intheworldmarketforcoal,andbytheendoftheyearitwas
doubtful whetherthelevelreachedwouldholdsteadyin1982.Ifithad,under­
takingswouldhavebeenabletoadjusttothenewlevelofprices,and
(disregarding exchange-rate changes,whicharehardtopredict)thiswouldhave
hadaconsiderable effectonrevenueexpressed innational currencies .Problems
alsoarosetosomeextentintheforecasting ofundertakings *production costs
owingtotheeffectsofinflation .Finally,allgovernments inthecoal-producing
HembsrStateshadbudgetary problemsin1982,whichprompted themtocalculate
subsidies withspecialcare.
5.WheretheCommission obtained knowledge fromthereportsofMemberStateGovern­
mentsofeconomicfactswhicharecovered bytheobligation ofprofessional
secrecyinArticle47of"theSCSCTreaty,thesehavenotbeenincludedinthe
memorandum .
6.Incalculating theamountofaidpertonnefor1982,thefollowing outputwas
usedasabasis(milliontonnes,t=»t):
7.Forconverting theaidamountsexpressed innationalcurrencies intoECU,'theFederalRepublic ofGermany
France
UnitedKingdora
Belgium94.6
18.0
124.5
6.3
TOTAL 243.4
following exchangerateswereused:(averageforfirsthalfof1982)
1ECU=M2.43
=FF6JL1
=£O.56
=BFR'43.1

3.
CHAPTER II
THESITUATION INTHECOMMON MARKETFORCOALIN1982ANDTHETRENDSIN
FINANCIAL AIDTOTHECOALINDUSTRY
1.Thesituation inthecommonmarketforcoal
Thememorandum describes onlythemostsignificant features ofenergyand
coalmarketdevelopments in1982,specifically thosewhichaffectaidmeasures
andthecompetitiveness ofCommunity ooal.Thefiguresrefertoestimates
available atthetimeofwriting (August1982).
In1982therewillhardlybeanimprovement ingeneraleconomic expansion in
theCommunity compared withtheprevious year.RealGDPisexpectedtorise
by1.0$,andtotalprimaryenergyconsumption willprobablyfall.Asregards
individual energysources,oilconsumption isexpectedtogoonfalling,while
theconsumption ofnuclearenergyshouldgoup;thetrendforcoalconsumption
shouldshowadecreaseofabout1%in1982.
Thesectorial patternofoverallcoalconsumption willprobably changeonly
slightlyin1982.Powerstationdemandforcoalwillfallby3%andhousehold
demandforcoalwillfallaswell,while"otherindustries' *willprobably consume
more(+5*2milliont)thanin1981.Coaluseincoke-ovens willfall
(-3.5milliont),becausesaleshavingsuffered bythecrisisinthesteel
industry.
Community coalsupplieswillfallin1982andproduction isexpectedtodropby
fourmilliontonnes;importswillprobably be1.5milliontonneslowerthanin
1981.

Although consumption --andsupply sirefalling ,theimbalance
inlast year 'smarket ,namely aglut ,will notaltogether disappear in_1982 .
Pithead stocks ofCommunity coal will rise again therefore in1982 "bymore
than 7million tonnes toover 53million tonnes .^"Ifcokestocks -which willalso
rise in1982 by1.5million tonnes -areincluded ,total coal andcoke stocks held
byCommunity producers will reach about 65million tonnes bytheendoftheyear .
favourable
This shows that there isnotaveay/trend inconsumption ontheCommunity coal
market andthat intheface ofcompetition from imported coal ,Community coal
isfinding itdifficult toexpand itsmarkets andthus prevent afurther in­
crease inpithead stocks .
Ifitheregional andgeographical differences inconditions ofcompetition which
affect Community coal through transport costs andinfluence firms 'sales policies
axediscounted ,there wasanincrease inprices in1981 ontheworld coal market ,
although this hadpetered outbyyear end.Inthefirst quarter of1982 prices
inUS-$ werevery softandshowing a-tendency tofall Slightly .
Table A
US2(pertonne
Coking coal
(AHAc.i.f .prices )
75.70
80.05
84.35
86.55
82,45
82.201.Imported coal prices
Quarterly Power-station coal Asat
average (free-at-frontier
c.i.f .prices )
I 1981 59.92 2.1.1981
II 1981 63.54 1.4.1981
III 1981 61.15 1.7.1981
IV 1981 62.81 1.10.1981
I 1982 •60.50 (*) 1.2.1982
1*4.1982
*
Provisional
Includes strategic stocks intheFederal Republic ofGermany

Aswellasthetrend,ofworldcoalmarketpcx-ces,onwhichCommunity firms
align,itistheexchangerateagainstthedollarwhichdetermines under­
takings 1revenueinnationalcurrencies .Ingeneral,theUS^wentupin
198l/82,favourably affecting therevenueofundertakings intheCommunity.
For1982,therefore ,someimprovement intherevenuesituation istobe
expected (exceptinthecaseofFrance),andthishasbeenreflected inaids.
Itisstilltrue,however,thatcoal-mining undertakings willbeunableto
withstand competition fromimported coalbythemselves in1982.Aidsarere­
quiredtoenablethemtostayinbusiness .
2.Thefinancial situation ofthecoalindustry intheCommunity
Completecalculations forcostsandrevenuein1931havebeenobtained from
undertakings ,thusmakingitpossible tocomparetrendswiththeprevious
year.
TableB
Finanoial situation oftheundertaking
Production costs^ Revenue Différence
2CU increase lüCU/t-increase ECU/t
1980 1981 1980 1981 lo 1980 1981
FederalRepublic of
Germany 74.085.0 +14.9 66.0 73.0+10.6-8.0-12.0
Belgium 100.0108.0 +8.047.0 60.0 +27.7-53.0-48.O
France 76.081.0 +6.653.0 65.0+22.6-23.0-16.0
2UnitedKingdom 63.078.0 +23.8 53.0 65.0 +22.6-10.0-13.0
Totalcostsincluding capitalservice anddepreciation .
2Includes open-cast mining.
^Thelossespertonnearenotfullycomparable withthesubsidiesper,tonne
showninTable2intheAnnex,whichwerecalculated inaccordance withthe
method ,laiddowninDecision No528/76,becauseofthewayinwhichsubsidies
aireenteredincompanyaccounts.

6.
Itcaabeseenthatproduction costshaverisen-exceptintheUnitedKingdom-
byaround8to15$.Generally speaking,thefactorsdetermining thistrendhavebeen
theeffectsofinflation discrepency betweentheriseinoutputperman-
shift(Communityaverage/up1.6$on1980)andthatinwages.IntheUnitedKingdom,
particular circumstances causedbyvariousfactorsincluding theeffectsofhigh
inflation hadanunfavourable influence onproduction costs,although UKmining
wasabletoincreaseitsoutputpermanshiftunderground by2,6$.
Althoughthepatternofrevenuevariedfromonecountrytoanother,thegeneral
trendwasforearnings fromCommunity coaltofollowworldmarketpricesin1981.
OnlyinBelgiumandFrancedidthediscrepancy betweencostsandrevenuein1981
leadtoanimprovement inearnings ;intheUKandtheFederalRepublic ofGermany
lossescontinued torise.
Atthetimeofwriting,noexactfiguresforproduction costsandreturnsin1982
wereavailable .Afurtherincrease inproduction costsonthesamescaleasin
previous yearscanbeexpected-exceptinthecaseofPrance-asthefactors
whichcausedproduction coststorise(increaseinmaterials costs,wagesand
interest )willcontinueunchanged in1982.Fkirlylargecostincreases areexpected
fortheFrenchcoal-mining industryin1982,according toFrenchGovernment estimates ,
amongotherthingsbecauseproductivity canprobably notbemaintained atthehigh
levelreachedin1981.
Estimating the1982revenuefromCommunity coalisdifficult ,sincetwoopposing
influences willbefelt.First,worldmarketcoalprices,whichrosecontinuously
totheendof1981whentheywereatahighlevel,havealreadydroppedduring
thefirstquarterof1982,althoughitisdifficult tojudgewhetherandhowfar
thiswillcontinuefortherestoftheyear;thiscausesuncertainty abouttheunder­
takings •pricingpolicyandtheforecasting ofthetrendofrevenue.

Second,forpractical reasons,undertakings canonlyreacttochangesinworld
marketpriceswithsomedelay.Atthebeginning oftheyeartherewasstilla1
certainamountofroomforthemtocatchupon1981priceincreases intheworld
coalmarketduring1982.
Theaboveinfluences arereflected intheestimated returnsfor1982.Ingeneral,
apartfromPlrance,amajorincrease (comparedwithcostestimates )istobe
expected ,andanimproved revenuesituation seemspossible asaresult.
Financial aidpanted byMemberStatestothecoalindustry in1952
AidsgrantedunderArticles 4and5ofDecision No528/76arecompatible withthe
commonmarket,provided theydonotexceedcertainlimits.AidsunderArticle 4
areforsocialsecurity benefits andthoseunderArticle 5"tohelpcoverinherited
liabilities .Theexplanations -tobefoundintheAnnex,pp.A1toA7-
showthatpermissible aidlimitswerenotexceeded.
ThefiguresaresetoutinTable1attheendoftheAnnex;ascanbeseen,there
willbesomeincreases in1982onthepreviousyear'sfigures.Asregardssocial
measureswithinthemeaningofArticle4»theincreases (+5*7^)aretheresultof
theconstantly deteriorating ratiobetweenthetotalnumberofmenemployed and
thosereceiving unemployment benefits andincreases inpensions . i
Theriseinthecostofcoveringinheritedliabilities withinthemeaningof.
Article 5(+:0.6$)is:theresultpartlyoffurtherpitclosures andrationali­
zationmeasures andpartlyofincreased pricesandcostsinsomecategories
ofinheritedliability (costsforclosures,drainage,pensions,concessionary
coal,etc).

8.
j-iirtocurrentproduction arethosedirectandindirect measures whichare
defined ,inArticles 7to12ofDecisonNo528/76andwhichprovidethecriteria
forjudgingtheproperfunctioning ofthecommonmarket.Detailsofthesemeasures
andwhattheycostareavailableintheAnnex(pageA7andse.andTable2).
TableC"belowprovides anoverallviewofthetrendsinailsenvisaged in1982
vis-a-vis1981.
Table G
Breakdown ofaids
Totalsum Amountspertonne
million ECU "£;cu
1981 1982 1981 1982
federalRepublic of
Germany
Belgium
Firance
UnitedKingdom1162.3
281.6
404.2
845.7754.8
199.4
553.8
718.412.42
46016
23,10
<7η-*β/17.97
31.68
30.77
5.76
Community 2693.8 2226.4 11.12 9.15
Ofthetotalstunsthe
following wereallocated to:
directmeasures
aidstocokingcoal
indirect measures 14O.O
844.2
809.648.2
432.2
1746.00.17
3.49
7.470.20
1.78
7.17
breakdown
Art.7(investment )
Art.8(Personnel )
Art.9(Stocks)
Art.10(Strategic re-
serves)
Art.11(PowerNStationvcoal)
Art.12(Losscoverage )1309.2
98.7
25.O
50.6
25.O
301.1236.3
111.2
23.0
59.1
6.8
1309.61.28
0.41
0.10
0.21
0.10
5.370.97
0.46
0.09
Ο.24
O.03
5.38
WhilethesumspertonnefortheFederalRepublicofGermanyininternational
comparison followingtheprovisions ofDecision528/76arecorrectstatistically ,
theyareonlypartlyvalidforsubstantial comparison withtheotherCommunity
countries.Thisisduetothethirdelectricity-from-coallaw,whichlaysdown
thatpowerstationsmustbuysteamcoalfromthecoalindustryatbreak-even
prices.Theadditional costincurredbyusingCommunitycoalisoffsetbyin­
creasingelectricity prices.In1981,thisoffsetlevyamountedtosomeDM1800m
(7.54ECUpertonne).AfigureofW1700m(7.40ECUpertonne)isestimatedfor
1982.Thissumisnot,however,includedinthelistofaids,sinceitisnota
stateaid.

Thetableshows,fortheCommunity asawhole,thataidplannedfor1982willbe
lessthanthatfor1981.Thedecreaseisappreciable ,withtotalaidfor1982
(almost2200mECU)amounting to17*4$lessthaninthepreviousyear;the
decreasepertonneisofthesameorderofmagnitude (-17.7%)»
Thecountry-by-countrycomparison showsthataids,inparticular forcoking
coalandinvestment ,willbereducedinalltheMemberStatesinquestion except
France.
United Kingdom
Thereduction ofaidstotheUKcoal-miningindustry from845.7mECUinthe
198l/82coalmarketing yearto713.4mECUfor1982/83-adropof15.1/&-
hasresultedchieflyfromlessaidbeinggrantedtocoverlosses.TheUKGovern­
menthasinformed theCommission thatthedevelopment oftheKCB'sbusiness in
the1982/83coalmarketing yearcannotbeforeseenentirelyandthatitmightbe
necessary toadjusttheplannedaids.
Belgium
Theaidsplannedfor1982willbeconsiderably lowerthaninthepreviousyear
(199.4masagainst281raECU,i.e.adropof29.2%).Themainareaswherethe
reductions willbemadeareaidstocoverlossesandaidsforcokingcoal.
EtyuppingtheBelgiancoalpricestoworldmarketlevels,itwaspossible
toraiserevenuebyconsiderably morethantheincrease inproduction costs,
withtheresultthattheearningssituation hasimproved.Ithasnotyetbeen
possible,however,tohaltproduction completely intheSoutherncoalfield-
wheretherevenuesituation isparticularly unfavourable -forreasonsof
socialandregionalpolicy;closurewasplannedfor31October1981.Thefunding
oftheaidisguaranteed bycreditsfromafinancecompany(SocieteNationale
pourleFinancement desCharbonnages )toreducethedrainonpublicfunds.

-10-
France
Byincreasing aids from 404.2 mECUin1981 to553.8 raECUfor1982
(arise of31%)Plrance hastaken theopposite approach totheother
three Member States .Thejump isalmost entirely duetoanecessary increase
inaidforcovering losses :itmust beborne inmind that alarge proportion
ofcoking coal aidunder Decision 73/287isincluded inaidtocover losses
under Article 12ofDecision No528/76.
Aspointed outonpage 5ftheexpected cost increases forFrench coal-mining
in1982 will considerably exceed possible price rises .Here itshould be
remembered that theestimates /revenue pertonne were made inFebruary /March
1982 ,with theresult that thedevaluation oftheSrench franc on14June 1982
could notbetaken into account .Earnings maytherefore increase considerably
during theyear ,with consequent improvements intheforecast revenue situation .
Ffederal Republic ofGermany
Aids in1982 totheGerman coal-mining industry will beabout 35?»less than in
1981 (754*8 mECUagainst 1162.3 mECU).Aids toinvestment andforcoking coal
arethemain categories concerned .Inthelatter case ,they areprovisional
estimates subject torevision during the'year .
Reductions inaidhave been made possible firstly ,bysome improvement in
therevenue position ofcoking coal .Secondly ,theneed tocome into line
with public spending cuts hasmeant acut4ntheamount ofaidgranted .In
order atleast partially tooffset theloss ofpublic aid ,thecoal-mining
industry will therefore have toseek itsownremedies .

11
Thereasonsforand.circumstances surrounding theaidmeasuresineachcountry
OfiOil
in1982have/explainedabove.Themeasuresarediscussed fromtheviewpoint
\
oftheircompatibility withthevariouscriterialaiddowninDecision No528/76
intheAnnex(seeChapterII,pageA7).Atthispoint,however,theymustalso
beexaminedforcompatibility withtheproperfunctioning ofthecommonmarket,
inaccordance withArticle3(l)ofthesameDecision.
Compatibility ofthefinancial aidsplannedfor1982withtheproperfunctioning 1
ofthecommonmarket
(a)Generalaspects
(i)Theamountsofaidpertonnefor1982citedinTable0onpage8show
thattheUnitedKingdomamountisfairlysmall,andthatthereisa
largegapparticularly betweenitandthosegranted byBelgiumand
France;theGermanamountliesroughlyinthemiddle.Thisdifference
inamountisnottoberegarded asindicating adistortion ofcompetition
betweencoalproducers .Essentially ,thecommonmarketincoalconsists
ofnational marketswhichrarelygiverisetocompetition fromseveral
Community producers .Thereareonlyafew"contested "areasinwhich
severalproducers offertheirproducts atthesametime,butthe
quantities ofcoalsoldintheseareasarerelatively small.Alignment
byCommunity producers onlyappliedto0.3milliontonnesin1981.In
viewofthis,itmaygenerally beassumedthatcompetition willnotbe
disrupted in1982becauseofthedifferences intheamountofaid
granted.
(ii)SuppliesofcoalandcoketotheCommunity in1982canbeassured
atalltimes.Pitclosuresin1982aspartofrationalization measures
willhavenoeffectonsupplies.Pitheadstocks,currentproduction

12.
andimportsenabledthedemandtobemet.Itistherefore clearthataids
willnotjeopardize suppliesin1982.
(iii)Accordingtoestimatesavailable ,therewillbeaslightdropinintra-
Community coaltradingin1982.Thetotalfor1982willbesome18million
tonnes.
TableD
Goaldeliveries tootherCommunity countries
1.000t
,FederalRepublic
ofGermanyBelgium France United
Kin/^domTotal
1981 10710 820 400 7725 19655
1982 9660 735 360 7290 18O45
TheTableshowsthatBelgian andFrenchdeliveries tootherCommunity countries are
extremely lowandconsequently havelittleimpactoncompetition between Community
producers .
Deliveries ofGermancoal,whichaccountfor50$oftotaldeliveries inintra-Community
trade,mainlyconcerncokingcoalforcoke-ovens inotherCommunity countries ..Inthe
pastfewyearsthesedeliveries havesteadilydeclined,havingbeenaffected bythe
crisisinthesteelindustry )therealcompetitive problems arehencenotbetween
Community producers butinrelationtocokingcoalimported fromnon–membercountries .
UnitedKingdomdeliveries inintra-Community trade,whichincreased sharplyin1981
becuasetheNCBhadtocontaintheriseinpitheadstocksandimproveitscashposition ,
competealmostexclusively withimported steamcoalfromnon-Community countries .Ttie
NCBismakingparticular effortsthisyeartomaintain andexpsjaditssales.

13.
Itcanbeconcluded fromtheforegoing thataidmeasures willhavelittle ,
influence onintra-Community tradeandcompetition betweenproducers . ,
(iv)Outputwillbefurtherrationalized in1982.Fburoperational installations in
theFrenchcoalfields oftheNord/Pas-de–CalaisandCentrs-Midi ,arebeing
closed,theclosures beingphasedsothatreginalandsocialproblems will
beavoided ;forrsasonsofrationalization ,pitsarealsobeingclosedinthe
UnitedKingdom,butatthetimeofwritingitisnotpossibletosayhowmany.
Theaimofinvestment aidandsubsidies grantedunderArticle 5ofBecison
No528/76istorationalize Community coalproduction ,removetheburden
resulting frompitclosures andmaintain thecompetitiveness ofthosepits
selected toensurefuturesupplies .
(b)Particular aspectsaffecting :thetrendsincoalprices
Changesinpricesofsomeooalsortsinanumberofselected Community coal­
fieldscanbeseeninthefollowing Table.
TableE
Trendincoallistprices
(innationalcurrencypertonne)
Steamcoal Cokingcoal
Date1.10.81 1.5.52 1.7.82 1.10.81 1.5.<Q?1.7.82
rederal Republic of
Germany
RAG DM2:?.-Hl)257,-(l)257.-(1)244.5O 244.50 244,50
Saar DM271,-(2)278.-(2)278.-(2)267.-27/1.- 274.-
iiacuen
BelgiumJ.'W
bfrs.3600(l)3775(1)4025(1)3280 3455 3655
'Fi·anco
Lorraine EF486.-(1)542.-(l)542.-(1)436.-502.- 565.-
United Kin,^dom
Scotland £
SouthYorkshire Ζ50.10(1)48.40(1)54.40(1)54.40(1)-52.50(1)52.50(1)-–-
1Hign-volatile ,nuts5
Highvolatile,nuts2

AscanbeseenfromtheTableflistpricesforCommunity coalhaverisen;
theywereraisedonlyslightlyintheFederalRepublicofGermany,butby
8to15$intheotherMemberStates,betweenOctober19Slandthesumaerof
1982.
Thisappliesonlytoacomparison oflistpricesandworldmarketprices.In
practicetheactua]pricescalculated byCommunity producers arelowerthanthe
listprices.Itisonlyonthisrealistic basisthattheproperfunctioning of
thecommoncoalmarketcanbeassessed .
TheCommission iskeepingawatchonthecurrenttrendsinpricesofsteam
coalandcokingcoalbothontheworldmarketandonthecommonmarketfor
coal.Asstatedabove(page4)»pricesintheworldmarketdidgoupin19'3l»
buthavefallenagainsincethefirstquarterof1982.TheCommission assumes
thattheproducers havedonealltheycantoalign.-,theiractualearning onthis •
trendandthatindustrial usersofcoalhavenotreceived anyindirectaidswhich
wouldnotbepermitted undertheprovisions ofArticle3(l)ofDecision
No528/76.
Conclusions abouttheproperfunctioning ofthecommonmarket
Onthebasisoftheaboveconsiderations ,'theCommission concludes thatthere
isunlikely tobeanydisturbance oftheproperfunctioning ofthecommon
marketin1982asaresultoftheaidsgrantedbytheMemberStates.
Concerning theproduction oftheCommunity theComnission.reminds '
theGovernments oftheMemberStatesthattheaspectof"maintenance ofthe
levelofCommunity 'stotalcoalproduction undersatisfactory economic con­
ditions"shouldnotbeneglected fortheaidmeasures .Theprefaceofthe
decision No,528/76aswellasthedocument COM(82)31final(TheRolefor
CoalinCommunity EnergyStrategy )refer ■tothisaspect.

15.
CHAPTERIII
Conclusions i
1.TheCommission hasexamined whetherthemeasures proposed "byeachMember
Statefor1982complywiththeprovision ofDecision No528/76andconcludes
thattheaidsproposed bytheMemberStatesrelating tocurrentproduction in
1982dosocomply.
2.Initsanalysis ofcoalmarkettrends,theCommission hasestablished thatthere
willbelittlechangeinthequantity ofcoalconsumed intheCommunity in
1982.Thecompetitive position ofCommunity coalhasimprovedslightly as
aresultofthesteepriseincoalpricesin1981ontheworldmarket.Aidshave
therefore diminished inalltheMemberStatesexceptFrance.
FortheCommunity asawhole,aidhasfallenbysome11*4%from2693.8mECU
(l98l)to2226.4mECU(1982);theaverageamountofaidpertonneinthe
Community hasfallenfrom11.12ECUto9-15ECU.Thedifferences betweenthe
amountsofaidpertonneineachcoal-producing MemberStatehavelessened.

SurveyoffinancialaidsplannedbytheKemberStatustothe
coalincluatry in19"-
Examination ofthecompatibility sfthemeasuresenvisaged wi
Decision No52S/7S/EC3C
Tables

A/1
Aidsnotrelatedtocurrent production
Theseaidsarerelatedtosocialmeasures andthecovering ofinherited
liabilities deriving fromearlierpitclosures, '
A.Description andassessment offinancial measures inthesocialsecurity
field
Artiole4ofDecision No528/76/EC3Cstatesthatcontributions byMember
Statestothefinancing ofsooialseouritybenefitsshallbeconsidered
compatible withtheCommonMarket,providedthat,forundertakings inthe
ooalminingindustry,theybringtheratiobetweentheburdenperminerin
employment andthebenefits perpersoninreceiptofbenefitintoline
withthecorresponding ratioinothersectors.
Thefollowing seotionisconcernedsolelywiththeamountoffinancial
aidgiveninthesooialsectorand,whereappropriate ,withcaseswhere
thelimitsset ,inArticle4ofDeoision No528/76/ECSChavebeen
exceeded .
A.l)GERMANY.FRANCE.BELGIUM
InGermany EM8570millionareen/isagedin1982.toooverthedeficitin
thesurviving dependents pension sohemeoftheminingindustry asawhole,
some80$-IM6.856million-ofwhichgoestotheooalindustry. 1
Information provided bytheFrenohGovernment showsthatstateaidtothe
Frenohooalindustryinthesooialseotorin1981willamounttoFFf9337«2
Thefollowing tablegivesdetailst

A/2
SourceExpenditure
(inmillion PP) Purpose
State
General
System
General
System
General
System
State
General
System4609.4
452.4
1457.5
1110.8
855.8
851.3Disability and old-age pensions insurance
Regular contribution amounting to22%of
wages subject tocontribution ,andadditional
State adjustment
Disability andold-age pensions insurance
Regular contribution tocover part of
"exceptional expenditure "(amount fixed bylaw)
Insurance against industrial accidents and
occupational diseases
Regular repayment ofinherited liabilities
Sickness msuranoe ■
Treatment benefits
Disability and old-age pensions insurance
"Exceptional expenditure "incoal mining industry
within themeaning ofArticle 4ofDecision No.
528/76
Supplementary scheme :worker *sretirement pen-
8ions
TOTAL 9337.2
State contribution tothefinancing ofsocial seourity benefits
fortheBelgian mining industry maybeestimated atBfrs .32120.7
Mio . -for1982 .Thefollowing table gives details
Source Amount of
State subsidies .
f.BFRmillion )Purpose
State
State
State
TOTAL18909.0 (1)
5211.7
8000.0
32120.7
(l)Commission estimateOld-age pension and insurance ofsurviving
dependants
Disability pensions insurance -
Disability pensions
Occupational diseases
50^oftheexpenditure arising from miners '
pneumoconios is

a/3
Calculations bytheCommission reveal that Germany ,Prance andBelgium .
have notexoeeded thelimits setinArticle 4ofDecision No.528/761
-InGermany theundertakings *aotual welfare expenditure isDM194 rr.
(3.1$ )higher than thenormal expenditure defined inArticle 4«
-InPranoe theState subsidy toCharbonnages deFrance (FF855.8m)
causes actual social expenditure andnormal expenditure tocoincide .
-InBelgium theundertakings 'actual sooial expenditure isBTR281.7 >m
higher than thenormal expenditure defined inArtiole 4®
(il)United Kinf^dora
Apart from thegeneral i.Sooial security system -into whioh thecoal industry -
isintegrated -almost allbranches ofindustry inBritain have insurance
systems oftheir ownfror which pensions arepaid toretired workers .The
British coal industry also hassuch asupplementary syBtem inthef»rm ofa
pension fund ,into which theBritish Government will pay £59.7 m inthe
1982/83ooal marketing year .However ,this auinisonly tobalanoe outtheratio
between working andretired miners ,sothat thelimits set inArtiole 4
ofDecision No528/76arenotexoeeded .
(iii)Summary offinancial measures inthesooial security sector
AsTable 1intheAnnex reveals ,State intervention inthesooial eeourity
seotor ofthecoal industry in1982 will be5«7$ higher than in1981 andwill
total 5177mECU .
••/9•
I

A/4
B.Description andassessment ofthe financial measures tocover inherited
liabilities
Pursuant toArtiole 5ofDecision .No528/76measures taken "byMember States
toassist theundertakings tocover theoosts arising from pitclosures
which axenotrelated toourrent production andthesale ofooal shall
becompatible with theCommon Market provided that theamountB involved
insuch measures donotexceed theamount ofsuch oosts ,i.e. theinherited
liabilities .Sums inexcess thereof represent direot aidtoourrent production
andaretoberegarded asaids under Articles 7to12 ofDeoision
No528/76.
(i).Germany
For1982 theFederal Government hasplanned thefollowing measures to
cover inherited liabilities t
DMpi?.lion
–closure premiums 24.3
–dispensation from obligations eu^ising under -
the Equalization ofBurdens Law '
Sub-total 24.3
~aidforwater-oontrol costs 141.0
-aidtocover expenditure resulting from 61.0
oontraotion
-aidtocover inherited liabilities 49.2
-aidtocover Ruhrkohle AG'sclosure 48*0
write-offs -
•TOTAL 323.5
(I33.1m SGU )
Alltheabove items represent liabilities inherited bytheunder­
takings ,i.e. those resulting from theclosure ofpits inprevious years ,
andtherefore donotrelate tocurrent production .
These measures areaids already granted inprevious years *
Through the .German Coal Tftning Association (Aktionsgeaeinschaf ^Deutscher Stein-
kdhlenbeisgbau theFederal Government rays the'undertakings concerned ai.rerr.ium
of20DK/tofannual capacity forthe'closures carrried out.These aremad3to
rationalize production .Theaidcovers only asitia.ll fraction oftheundGrta.-cin^o '
actual closure corrfcs .
•••/••

Λ/5
The suinofDK141.0m forwater control cost swill bepaid totheRuhr '
mining industry specifically tocover thefinancial burden rising from
closures since 31December 1966.Asaresult ofpitclosures ,theRuhr
coal-mining industry bore aheavy burden intheform ofconstantly rising -
contributions towater control associations andtheRuhr Pumping Asscocic-tion
(Pumpgemeinschaft Ruhr ).Theaiddoes notexceed theactual additional costs to
borne bytheundertakings .
ThesumofDM6l,0ra tocover expenditure resulting from contraction is
additional totheclosure premiums which (asmentioned above )donotcover
actual costs ofclosures .This measure concerns liabilities arising outof
pit closures since 31December 1972 .The aid isspread over aperiod offive
years intheform ofaflat-rate payment ofDM30forevery tonne bywhich
annual capacity isreduced ,butnotexceeding actual costs borne bythe 1under­
takings asaresult ofth3 closures .
The suraofDM49«2m isaidforcovering inherited liabilities arising from pit
closures before 1January 1973 .The relevant German laws ensure that the aid
does not exceed actual liabilities borne byundertakings .
I
ThesumofDM4°,0m asaidtowards closure writer-offs only concerns Ruhrkohle
AG.Inprevious years theRuhrkohle AGhashadtoinclude write-offs ofassets
resulting from pit closures which could notbebrought into theprofit andloss
account because this would have bankrupted theundertaking .Aspecial item
was therefore introduced onthe assets side ofthe balance .

A/6
Taking into consideration thefinancial position oftheundertakings ,the
public authority hastherefore agreed totake over DM48Chi.ofthe
total sum-payable in10equal annual instalments -DM48m.
Alltheabove measures olearly meet therequirements ofArtiole 5(l)
Deoision No528fj6.Thetotal suminvolved inthemeasures is133.lirECU
in198.2 and isincluded inTable 1ofthe Annex .
(ii)Prance ,United Kingdom '
I
)For1982,theFrench Government hasallocated asumofFF665.0a(107.1m .^-CU)
asaidtowards oovering inherited liabilities borne byCharboimages deFrance .
This sum inaidisintended tocover thefollowing inherited liabilities t
FFm
-contribution toearly retirement pensions 29.5
–premiums ,lump sums forretrained personnel ,
cost ofhousing forthose retiring early 50.3
-financial liabilities inrespect ofthose
retiring early
-concessionary allowances forthose retiring
early552.7
32.5
TOTAL 665.O
(=107.lmECU)
Broken down between coalfields asfollows t
Nord/Pas -de-Calais ' 452.2
Lorraine 56*7
Centre-Midi 156.1
τ
TheCommission estimates that theaotual liabilities borne bytheCharbonnages
4
deFranoe arethesame asthesumgranted inaid*
••/••

A/7
In1982 "theBritish Government planstointroduce thefollowing measures
underArticle5ofDeoision No528/761
f£million
-redundancy payments tominersaffeoted "bypit 18.0
olosures
-earlyretirement payments 17.4
-aidinrespeotofoonoessionary coalfor
pensioners J-4»4
(88.9mECU)
TheUnitedKingdommeasures coverinherited liabilities arisingoutofpit
olosures jtheseliabilities arethesameasthesumgrantedinaid«
the
Tosummarize ,itoarbesaidthat/FrenohandUnitedKingdommeasures
listedabovemeetthecriteriaofArticle5(l)ofDecision No528/76.
ill)Summaryofthemeasurestoooverinheritedliabilities
AsoanbeseenfromTable1oftheAnnex,theplannedstateaidstooover
inheritedliabilities in1982willtotal for'Com,>tu>iity
asawhole1aninoreaseof0.6%over198l».
!
Financial aidrelating tocurrentproduction
Allaidsthataxenotsocialmeasures withinthemeaningofArticle 4of
Deoision No,528/76,oraidstoooverinheritedliabilities withinthemeaning
ofArticle 5areaidstoourrentproduction *
Aidtoourrentproduction maybegranteddireotlyorindireotly toundertakings .£million
18.0
17.4
14.4
TOTAL 49.8

y
A/8 I
i
ι
A.Indirect finanoial aid tocurrent production inthe ooal mining industry
Indirect finanoial aid covers all measures whioh Member Governments announce
inaccordance with thefirst paragraph ofArticle 2(l)ofDecision No.528/76
butwhioh donotcome into thecategory ofthedireot measures defined in
Articles 7"to12oftheDeoision .Indirect measures arereported totheCommission J
under Deoision No528/76andassessed aooording totheprovisions oftheECSC j
Treaty , !
1
Only Germany ,Franoe andBelgium have announoed indirect measures toaidcurrent
production intheooal industry for1982 .Thefollowing measures were taken in
I
previous years .aswell .
(i)•Description oftheGerman ,Belgian andFrench measures
For1982 theFederal Government hasprovided forspecial depreciation
faoilities inrespect ofexpansion and rationalization measures inthe
underground sector oftheooal industi-y .Tha suraofthese special depreci­
ations amounts toDM70.0million (28.8ai ECU).Themeasure isbased
onparagraph 51oftheIncome TaxLawandonparagraph 8loftheIncome Tax '
Regulation andwill give theGerman ooal Industry nocompetitive advantages
vis-a-visother Community ooal producers ,sinoe thebalance sheets ofGerisan
1
coal mining undertakings inanyoase show losses which arepartially reduced ;
bydireot aids .
. I
Theindireot financial measures planned bytieBelgian Government involve
thefollowing sectors t
BFR million
-expenditure onseason tiokets oroheap •>
holiday tickets forminers ,pneumoconiosis sufferers 13.7
–subsidies totheWiners 'National Pensions Fund to
compensate fornewexpenditure onwelfare arising from
theincrease intheminers 'annual holiday allowance ,the
.introduction ofnewsiokness benefits andlonger annual
holiday (Artioles 32.12 and32.14 in "t*1®budget ofthe
Eoonomio Affairs Ministry ) 461.9
TOTAL 475.6
£*n.cm rcu )
I
|
i

A/9
TheFrenchGovernment plansastatesubsidyofFF52.Or.(8.4^ECU)
fortheresearch programme oftheCentred'Etudeset.'.echerches des ■•
Charbonnages deFrance(CERCHAR)in1932. ,
(ii)Assessment ofindirectfinancial aidtothecoalindustry
TheCommission hasexamined theabove-mentioned measures ,whichhavebeen
inforceforseveralyears,anddoesnotconsider thattheyviolatetheban
onsubsidies setoutinArticle 4oftheEC3CTreaty.
(iii)Summaryofindirectmeasures
Table2attheendofthisannexgivestherelevantfiguresfor(ii).
In1932directaidtothecoalindustryroseto48.2mECUf!rom40.0:A^CU
in1981.
B.Directfinancial aidtocurrent production inthecoal-miningindustry
(i)FederalRepublicofGermany
(a)Theextenttowhichdirectfiancialaidtocurrentproduction inthe
Germancoalminingindustry iscompatible withtheprovisions of
Articles 7to12ofDecision No528/76
TheFederalGovernment proposestocontinuein1982thedirectaids
alreadygrantedin1981. '
Legalbasis Measures aid
underDecision
No528/76Total Pertproduction
D-'millionmillion"CtT'JtW ECU
Art.7(1)
and(2) Investment aid 478.41)196.9 5.06 2.08
Art.7(3)(3)Promotion ofinno­
vation 67.0 27.6 0.71 ,0.29
Art.8 Mireworkers *
baauses 2?0.0 90.5 2.33 0.96
Art.10 Aidtosecurity
stocks 143.5 59.1 I.520.62
TOTAL 908.9 374.1 9-62 3.95
Including thesubsidygrantedtotheKschweiler Bergwerksvercin amounting to
DM168.Omtofinancerestructuring investments .

A/10
Inaddition totheaids'mentioned above ,theFederal Lander Governments
aretogrant coking coal aidtothevalue ofEM855m (351.9m in1982 ,
anaidtoproduction pursuant toDecision No73/28?.
Theinvestment aidof196.9m ECU isintended forinvestment projects
inpits ,coking plants ,briquetting plants andpithead power stations .In
1982 ,total investment intheGerman coal industry will come tosome 410® ECU .
Investment aidwill represent just under ^Ofooftotal investments .
The investment aid istoberegarded asbeneficial since itwill promote
thelong-term stabilization ofproduction intheGerman coalfields .Theaid
complies with theprovisions ofArticle 7(l)ofDecision No528/76.
Thesumof27.6m ECUtopromote innovation isintended toensure that re­
search results areapplied toproduction asquickly aspossible .Theaid is
lower than the costs borne bytheundertakings and isgranted inrespect of
individual projects which ,when completed ,arelikely toprove their economic
worth tocoal-mining inthemedium term .Thepurpose andamount ofthis aid
show that itiscompatible with Article 7(3)(3)ofDecision No528/76.
Sineworkers •bonuses ,amounting to90,5m ECUhave applied since 1956 .Abonus
ofEM10ispaid forevery shift worked underground .This bonus ensures
that qualified mineworkers required fortheGerman coal industry toincrease
itsoutput stay incoal-mining .Themeasure therefore satisfies Article 8of
"Decision No528/76.

A/11
The suraof59.1m ECUasaidtowards maintaining long-term security
stocks isameasure introduced bytheFederal Government inorder toin­
crease thelong-term security ofenergy supplies .Forthis purpose ,the '
German Coal Mining Emergency Association (Notgemeinschaft Deutsc.her Stein -
kohlenbau bought up10million tonnes ofcoal andcoke .TheFederal Govern­
ment covers only part oftheactual current cost ofmaintaining these stocks
in1982 ,bygranting anaidofEM143 .5mECU .Thepurpose andamount ofthe
aidshowthat itsatisfies Article 10ofDecision No528/76.
Theforegoing remarks show that thefinancial measures planned bythe
Federal Government for1982 infavour oftheGerman coal-mining industry
satisfy Articles ft8and10ofDecision No528/76.
The extent towhich direct financial aids tocurrent production inthe
German coal -mining industry are compatible with the proper functioning
ofthe common market
Anassessment ofthe extent towhich German aids arecompatible with the
proper functioning ofthecommon market requires consideration ofalldirect
andindirect aids forcurrent production in1982 (Article 3(2)ofDecision
No528/76).
Therelevant figures aregiven inasummary table (seeTable 2attheend .of
this annex ).
Bythis method ofcalculation ,thetotal proposed aidunder theGerman
measures amounts to754.8m ECU,or7«97 ECU/t.Incomparison with 1981 ,aids
pertonne have fallen by35«8$.
Asregards thecompatibility ofGerman aids with theproper functioning of
thecommon market ,reference ismade tothecomments inthemain body ofthis
document (seepage 11etseq.).

A/12
(ii)FRANCS
(a)Theextent towhich direct financial aids tocurrent product ion
inthe French c.oal-minin, -?industry arecompatible with the
provisions ofArticles 7to12ofDecision No528/76
TheFrench Government didnotprovide foranynewaids in1932 ,but
continued with aids instituted inprevious years ;this involves
only loss–covering aid :
Legal basis Measures Amount of Aid
under Decision ■
No528/76 Total Pertproduction
fFmillion million ECU FF 3CU
Article 12 (a)Cover forthe
losses bythecen­
tral administra - 441*0 71*0 24.50 3.94
tion ofCharbon -
nages deFrance
(b)Cover forthecoal- 1\fields' operating 2936.2 ;472.8 163.12 26,27
losses
TOTAL 3377.2 543.8 187.62 30.21
Including aportion ofthecoking coal aid .
Inaddition totheabove-mentioned aids ,anaidforcoking coal ofFFlO.Qni (l.6m ECU)
istobegranted in1982 .This figure islow ,since part ofthecoking coal aid is
covered byArticle 12.
Asregards theassessment oftheaidgranted in1982 inaccordance with Decision
No528/76,theaidsumof*F3377.2 million isexpected tobeless than thetotal
losses oftheCharbonnages deFrance .Theamount oftheaidtherefore complies with
theprovisions ofArticle 12oftheDecision .

A/13
Thefollowing points arerelevant inconnection with aid totheindividual ,
coalfields :
»
-in1982 ,aidtotheNord/Pas-de-Calais andCentre-Midi coalfields will be
calculated insuch awaythat ,a.saresult oftheclosure offurther pits ,
there will heareduction inproduction ,which will mean tha.t some 120fewer
persons will beemployed inthecoal industry .Th«aids will prevent severe
economic andsocial disruption inareas where there arenotyetadequate
opportunities forre-employment .The aids tothese coal-fields therefore
satisfy Article 12(l)(l)andArticle 12(2 )oftheDecision .
-Theoutput planning oftheCharbonnages deFrance intheLorraine coal­
field aims atlong-term stabilization ,since thecoking coal produced
inthis coalfield isimportant forsupplying thesteel industry .Theaid
granted forthis purpose complies with Article 12(l )(2)andArticle 12(3 )
ofthe Decision .
(b)Theextent towhich direct aids tocurrent production inthe ^Vench coal
rr'inin /cindustry are compatible with the proper functioning ofthe common
market
Total direct andindirect aidtocurrent production amounts to3?2.3m 3CU
.(30.77 .ECU/t;seeAnnex ,Table 2),anincrease of33.2^in19R?(23.10 'ECU/t).
Asregards thecompatibility ofFrench aids with theproper functioning
ofthecommon market (Article 3(l )ofDecision No522/76,reference is
made tothecomments inthemain body ofthis document (seep.11etseq.).

A/14
(iii)Belgium
(a)theextenttowhichdirectfinancial aidstocurrentproduction inthe
Belgiancoalminin,-:industry arecompatible withtheprovisions of
Articles 7to1?ofDecision No528/76
In1982,theBelgianGovernment intendstoprovideaidforinvestment ,
recruiting skilledworkersandcovering operative losses.
Legalbasis
underDecision
Ho528/76Measures Amountofaid
Total Pertproduction
BFRmillion JÜCUmillion BT?R'éyj
Art.7(2) Investment aid 5IO.O 11.8 81 1.87
Art.8 Recruitment ofskilled
workers 20.0 0.5-> 0.07
Art.12 Meetingoperational
losses :
Coalfield:Campine
Southern3624.1
575.234.1
13.3604
201814.02
46.67
Sub-total 4199.3 97.4 66.815.50
TOTAL 4.729.3 109.7 752 17.44
Inaddition totheaboveaids,theBelgianGovernment intendstograntacoi-'.ing
coalaid(Decision MO73/287)ofBFR3390.0m(78.7mKCU)forthecurrentproduction
oftheCampinecoalfield .TotaldirectBelgianaidamountstoBFR8119.3®;itis
divided between thetwocoalfields asfollows :
Campine :BFR7544»lm =1257BPR/t
Southern :BPR575.2m =2018BFR/t
TOTAL :3FR8119.3m =1292BPR/t
Oftheinvestment aid,asumofBFR510.OrnwillgototheCanipinecoal-field .
Investment isparticularly important forthelatter,sinceith;istomaintain '..ie
•supplyofcokingcoalfortheBelgiansteelindustry.Belgianinvestment aid*itthere­
forecompatible withArticle7(2)ofDecision Wo528/76.

A/15
Aidforrecruiting andtrainingskilledworkers (3FR20.0rn)hasproved
necessary inordertoattractintoBelgiancoal-mining suitablyqualified
labourwhichcanoperatemodernplantandmachinery properly.Theaid
therefore complies withArticle 8oftheDecision,
Aidtotalling BFR4199»3mtocoveroperating lossesispaidtothe
twoBelgiancoalfields fordifferent reasons.TheaidpaidtotheCampine
coalfield willalmostmakeupthedifference betweencostsandreturns.This
almostcomplete covering ofthedifference betweencostsandrevenueisnecessary ,
becausethecoalfield ismeantto"supplytheBelgiansteelindustry with"coking
coalandmusttherefore maintainitsoutput.Thepurpose andamountofaid.
grantedtocoverlossesinrespectoftheCampinecoalfield therefore satisfy
thetestsofArticle12(l)(2)andArticle12(3).
TheSoutherncoalfield ,however,receivesaidcovering *bnlypartofthe
difference betweencostsandrevenue.Heretheintention istoensurethat
onlyessentials afemaintained andthepitsremainviableuntilthecoalfield .
canbecloseddownwithoutfriction ,sothatseriouseconomic andsocialup­
heavalisavoided.Forthesereasons,theclosureofthelastpit,whichwas
scheduled for31October1981*hasbeenpostponed .Thefinalclosuredatehas
notyetbeenfixed.i>lromallthisitcanbeseenthattheaidtocoverlosses
intheSoutherncoalfieldiscompatible withArticle12(l)(l)andArticle12(2).
(b)Theextenttowhichdirectaidstocurrentproduction intheBelgiancoal
miningindustry afrecompatible withtheproperfunctioning :oftheccnrr.cn
market
IntheBelgiancoalminingindustry,aidstocurrentprodcution total
199.4mECU(31.68ECU/t)for1932(seeAnnex,Table2).Comparison withthe
1981figure(28l.6mECU)showsthattherehasbeenareduction ofalmost2,0%,

A/16
Asregards thecompatibility ofBelgian aids tocurrent production
with theproper functioning ofthe domraon market ,reference ismade tothe
comments inthemain body ofthis dooument (seep.11etseq.).
(iv)United Kingdom
(a)Theextent towhich direct financial aidtoourrent production inthe
British coal mining industry iscompatible with the provisions of
Articles 7-t-.pl?ofDeoision No.528/76
Forthe198.2/8,3coal marketing year theBritish Government plans the
following direot aids tocurrent production t
?_ .. Amount ofaidunder Decision Measures
No.528/76 Total Pertproduction
£million million ECU Z
Art.8 Aidtoattraot skilled 11.3 20.2 0.09 0.16
workers ;
Art.9 Aidtoproducers *stocks 12.9 23.0 0.10 0.1°
Art.11 Aidtosteam coal 3<g Q#03^
Art,12 Aidtooover losses 374.3 , 668.4 3.01 5•37
TOTAL 402.3 718.4 3.23 5.76
Theaidforattracting andkeeping skilled workers (£11.3m )isintended
tooffset inpart the NCB'scosts arising from rationalization andthetransfer
ofproduction totheir best pits .This results inoutgoings onremovals ,trans­
port ,eto.Theaidiscompatible with Article 8ofDeoision No.528/76.
*
When assessing theaidtocover oosts forproducers' stocks ofcoal andooke
(.£12.9m) itmust beremembered that total pithead stocks andadditional
distributed stocks directly orindirectly financed bytheproducers will total
more than 30million tonnes bytheendof1982 .Given amonthly ,production of .

A/17
some10.0milliontonnes,thevolumeofpitheadstocksqualifying for;.id
underArticle9ofDecision No528/76wouldbe20milliontonnes.This 1
meansthattheper-tonne grantinaidis£0.6.Theactualcostsofmain­
tainingproducers' stocks(including depreciation andinterest )areconsider­
ablyhigherthanthesumgranted.Theaidtherefore complies withthepro­
visionsofArticle9ofDecision No528/76.
to
Theaidgrantee/power-station coal[Z3.8m)isfordeliveries ofpower
stationcoaltoScotland ,l^romtheinformation provided bytheBritish
Government ,theamountandpurposes oftheaidgrantedcanberegarded as
compatible withArticle11ofDecision No528/76.
Theaidgiventocoverlosses(£374«3ro)willlargelycoverthelossessustained
byNC3pitsin1982/83.Theaidisgiventoavoidseriouseconomicandsocial
disturbances inthosecoalfields where-intheeventofpitclosure-there
arenotyetadequate re-employment opportunities forredundant minersandto'3
maintain existing production capacity soastosafeguard energysupplies.The
aidistherefore compatible withArticle 12oftheDecision .
(b)Tieextenttowhichaidstocurrentproduction intheBritishcoalrninin;:industry
arecompatible withtheoroperfunctioning ofthecommonmarket. >
Inthe1932/83coalmarkctingyearaidstocurrentproduction intheUnited
Kingdomwilltotal718.4mECU(5.76liCU/l)(seeAnnex,Table2).For1982,this
represents adropofabout15$onthe1981plannedfigures (845«7mECU).
Asregardsthecompatibility Britishaidstocurrentproduction withtheproper
functioning ofthecommonmarket,reference ismadetothecomments inthe
mainbodyofthisdocument (seepage11etseq,).

Table 1
Aid .not relating -tocurrent production
(million ECU)
Social security measures pursuant toArticle 4
ofDecision No "528/76Aids tocover
Articleinherited liabilities pursuant to
5ofDecision No 528/76
•- Total Infringements
ofArte 4Total Infringements of
Art .5
1981 1982(1982 )
I98I(1982 )
1982
Federal Republic
ofGermany 2.682,4 2.821,4 188,0 133,1
Belgium 704,3 745,3- - -
France
United Kingdom1.417,8
1)91,3 ''1.503,6
106,6^ -96,1
43,0107,1
88,9
Total for the
Community4.895,8 5.176,9 - 327,1 329,1
(l)TheUnited Kingdom hasanintegrated social security system .Thefigure shown inthis column covers only
thespecial miner 'spension fund ,which exists side-by-side with thegeneral social security system .

Aidforcurrentproduction in19^2Table2
Unit FederalRepub-„ United Belgium CommunitylieofGermany CeKingdom
A.AidsunderDecision No0528/76
1.InfrinternentofArticle4 mECU
ofArticle 5 mEGU
Total
pertonneofproduc­
tionmEGU
ECU- - -:
2«Directmeasures
pertonneofproductionmECU
ECU28,8
0,308,4
0,47- 11,0
1,7548,2
0,20
3·Indirect measures
Article 7
Article 8
Article 9
Article 10
Article 11
Artide 12mECU
mECU
mECU
mECU
mECU
mECU224,5
90,5
59,1
543,820,2
23,0
6,8
668,411,8
o,5
97,4236,3
111,2
23,0
59,1"
6,8
1.309,6
Total
pertonneoroductionm,ECU
ECU374,1
3,95543,8
30,21718,4
5,76109,7
17,441.746,0
7,17
£»Cokingcoalaid(Decision
No,73/287
DertonneproductionmECU
ECU351,9
3,721,6
0,09- 78,7
12,49432,2
1,78
C.TotalfA+3)
Totals
■pertonneoroductionmECU
ECU754,8(2)7,97553,8
30,77718,4
5,76199,4
31,682.226,4
9,15
l)Planr.ûdfigures
2)ExcludingaidgrantedundertheThirdElectricity-from-coalLaw(=DM1700mrespectively 7»40ECUpertonne).