CELEX: 31975D0544
Language: en
Date: 1975-07-10 00:00:00
Title: 75/544/ECSC: Commission Decision of 10 July 1975 authorizing the United Kingdom to grant additional aids to coal mining undertakings in respect of the 1973/74 coal year and authorizing the United Kingdom to grant aids to coal mining undertakings in respect of the 1974/75 coal year

10 . 9 . 75                               Official Journal of the European Communities                             No L 238 /21
                                                    COMMISSION DECISION
                                                          of 10 July 1975
                authorizing the United Kingdom to grant additional aids to coal mining under­
                takings in respect of the 1973/74 coal year and authorizing the United Kingdom
                 to grant aids to coal mining undertakings in respect of the 1974/75 coal year
                                                 (Only the English text is authentic)
                                                           (75/ 544/ ECSC)
THE COMMISSION OF THE EUROPEAN                                         maintenance work on machinery and the general clear­
COMMUNITIES,                                                           ance work which were usually carried out in overtime
                                                                      were not being done ;
Having regard to the Treaty establishing the European
Coal and Steel Community, and in particular Articles
2, 3, 4 and 5 thereof ;                                               Whereas following the end of the overtime ban there
                                                                      was a total strike lasting until 11 March 1974 which
Having regard to Commission Decision No 3/71 /                         caused a further loss in output of 10 million metric
ECSC (') of 22 December 1970 on Community rules                        tons ; whereas after the strike the NCB installations
for interventions by Member States for the benefit of                  had to be brought into working order again at consid­
the coal industry ;                                                    erable expense ;
 Having regard to Decision No 73/287/ ECSC (2 ) of 25
July 1973 concerning coking coal and coke for the                      Whereas the figure of £ 150 million by which the
iron and steel industry in the Community, and in                       United Kingdom Government requested permission
particular Article 9(1 ) thereof ;                                     to increase the aid was only a provisional estimate ;
                                                                       whereas the actual additional losses which the aid is
 Having consulted the Council ;                                        designed to cover amount to only £ 130-7 million
                                                                       according to the annual report of the NCB which has
Whereas on 16 October 1974 the Commission of the
                                                                       now been published ; whereas the Commission can
 European Communities issued Decision No 74/ 612/                      therefore authorize aid of only £ 1 30-7 million to
 ECSC (3) ; whereas that Decision authorized the aids                  cover the operating losses ; whereas, subject to the
which the United Kingdom Government proposed, to                       above, the measure is compatible with the provisions
grant to the coal industry for the 1973/ 74 coal year in               of Article 9 of Decision No 3 / 71 / ECSC ;
so far as they had been dealt with and examined in
the 'Memorandum on additional financial aid awarded
by Member States in 1973'(4);                                          Whereas an increase in the aid for the 1973 / 74 coal
                                                                       year, as requested by the United Kingdom Govern­
Whereas, as was stated in the Memorandum (""), the
                                                                       ment, is not likely to hinder the proper functioning of
 United Kingdom Government proposed to grant aids                      the common market ;
of £ 130-2 million to the coal industry under Decision
 No 3 / 71 / ECSC ;
Whereas in a written application dated 20 March 1974                   Whereas this view is supported by the following find­
the United Kingdom Government requested permis­                        ings :
sion to increase the aids by £ 150 million in order to
 make up the operating losses caused by strikes in the                 — the granting of aid did not impede trade in coal
 1973/74 coal year ;                                                       between the United Kingdom and the other
                                                                           Community countries in 1973 . Because of the coal
Whereas from 12 November 1973 to 11 February                               miners' strike British industry itself risked running
 1974 the British miners refused to do overtime , which                    short of fuel . The uncertainties in the general
 led to a fall in output of approximately 10 million                       energy supply situation caused by the oil crisis and
 metric tons ; whereas at the same time this consider­                     the miners ' strike meant that the British market
ably impeded general operations in the pits, since the                     was supplied mainly with domestic fuels and that
                                                                           the NCB 's pithead stocks could be reduced ,
(')  OJ No L 3 , 5 . 1 . 1971 , p. 7 .
(2)  OJ No L 259, 15 . 9 . 1973 , p. 41 .
(3)  OJ No L 335, 14. 12 . 1974, p. 26 .                               — in 1973 the prices of coking coal and steam coal
(■») Doc . SEC (74) 1377 fin , p. 11 / 85 .                                in the United Kingdom did not lead to indirect
;5 ) Doc . SEC (74) 1377 fin ., p. 11/ 95.                                 aids for industrial users of coal ;
 ---pagebreak--- No L 238 /22                        Official Journal of the European Communities                            10 . 9 . 75
Whereas the Commission therefore considers that the           incurred by the NCB is no longer related to coal
proposed raising of the aid to the British coal mining        production and is covered partly by the aid ;
industry for the 1973/74 coal year to cover operating
losses may be regarded as compatible with the proper
functioning of the common market ;                            Whereas aid towards severance payments for miners
                                                              about to be made redundant or for the vocational
                                                              retraining of staff was introduced by the Coal Industry
Whereas, in addition, the United Kingdom Govern­              Act 1965 ; whereas the Coal Industry Act 1973 conti­
ment has informed the Commission under Article 2              nues the aid and makes provision for payment of a
of Decision No 3/71 /ECSC of financial measures,              maximum of £ 60 million for the years 1973/74 to
both direct and indirect, which it intends to take             1975/76 ; whereas for 1974/75 provision has been
during the 1974/75 coal year (') for the benefit of the       made for a sum of £ 5-8 million ;
coal industry ; whereas of those measures the aids
listed below require authorization under the above­
mentioned Decision ;                                          Whereas such aid is granted in respect of miners
                                                              leaving mining as a result of pit closures and of those
                                                              being retrained and/or re-employed in coal mining ;
Whereas the United Kingdom Government proposes
to grant the following aids to the British coal industry
in the course of the 1974/75 coal year :                      Whereas the purpose and form of the aid show that
                                                              the measure meets the criteria laid down in Articles
                                            in £ million
                                                              6 (1 ) ( 1 ) and 7(3) of Decision No 3/71 /ECSC ;
to    cover   expenditure    resulting
from the retirement of staff                   13-8
for     severance    payments       to                        Whereas aid towards covering the NCBs expenditure
redundant miners and/or for the                               resulting from the early retirement of staff was intro­
vocational retraining of staff                  5-8           duced by the Coal Industry Act 1967 ; whereas for
to cover the NCB's expenditure                                 1974/75 provision has been made for an amount of £
resulting from the early retirement                            3-7 million ;
of staff                                        3-7
to cover expenditure on the supply
of concessionary coal to redundant                            Whereas such aid is granted in respect of miners
miners aged from 55 to 65                       0-65          retired prematurely ; whereas such retirement was
                                                              necessary on account of the fall in production (as a
for the adaptation and retention of                           result of marketing difficulties) during the years 1967
staff                                           2-7
                                                              to 1970 ; whereas the expenditure on pensions
aid in respect of pithead stocks                2-0
                                                               incurred by the NCB is no longer related to coal
to    cover  the  NCB's     estimated                          production and is covered in full by the aid ;
operating losses during the coal
year 1 973/74                                  45-0
                                                              Whereas fhe purpose and form of the aid show that
                                                              the measure meets the criteria laid down in Article
                                                              6(1 ) of Decision No 3/71 / ECSC ;
Whereas the abovementioned aids meet the criteria
laid down in Articles 6 to 9 of Decision No 3 / 71 /
ECSC in respect of the admissibility of such State            Whereas the aid towards covering the NCB s expendi­
assistance ;                                                  ture on the supply of concessionary coal is in respect
                                                              of expenditure which is no longer related to coal
                                                              production ; whereas the NCB's expenditure on the
Whereas aid towards covering the expenditure                  supply of concessionary coal to miners between the
resulting from the retirement of staff was introduced         ages of 55 and 60 made redundant during 1974. is
by the Coal Industry Act 1973 and makes provision             reimbursed in full by the United Kingdom Govern­
for payment of a maximum of £ 60 million for the              ment, while for miners made redundant between the
years 1973 /74 to 1975/76 ; whereas for 1974/75 provi­        ages of 60 and 65 the aid will cover 50 % of the
sion has been made for a sum of £ 13-8 million ;              expenditure on the supply of concessionary coal ;
                                                              whereas for 1974/75 the amount of aid provided for is
                                                              £ 650 000 ;
Whereas such aid is granted in respect of miners who
have retired ; whereas the expenditure on pensions
                                                              Whereas the purpose and form of the aid show that
(') The 1974/75 coal year runs from the beginning of April    the measure meets the criteria laid down in Article
    1974 to the end of March 1975 .                           6 ( 1 ) ( 1 ) of Decision No 3/71 / ECSC ;
 ---pagebreak--- 10 . 9 . 75                         Official Journal of the European Communities                            No L 238/23
Whereas the aid towards the adaptation and retention          Whereas in 1974 several small unprofitable pits were
of staff is a subsidy to be paid by the United Kingdom        closed down ; whereas not only large parts of the coal
Government towards the estimated sum of £ 7-5                 mining regions but also other parts of the country
million which the NCB will have to spend in 1974/75           have a weak economic structure ; whereas the overall
on the regrouping of staff under the rationalization          unemployment figure is relatively high (about 4 %) ;
programme ; whereas, in order to ensure that qualified        whereas for these reasons account must be taken of
personnel are retained, the costs incurred by the             regional and social difficulties when pits are closed
miners affected by the regroupment schemes must be            down ;
reimbursed by the NCB ; whereas such costs include
removal and resettlement costs, travel expenses and
temporary loss of income ;                                    Whereas it follows from the foregoing that the aid
                                                              proposed for covering the NCB's operating losses in
                                                              the 1974/75 financial year is in accordance with the
Whereas in 1974/75 the United Kingdom is to contri­           provisions of Article 9 (1 ) (1 ) and (2) of Decision No
bute £ 2-7 million towards such expenditure incurred          3/71 / ECSC ;
by the NCB ;
                                                              Whereas it must be pointed out, in addition, that the
                                                              £ 45-0 million aid applied for is to be paid out only to
Whereas the purpose and form of the aid show that
the measure meets the criteria laid down in Article           the extent of the actual operating losses of the NCB ;
                                                              whereas the aid is therefore in accordance with the
7(3) of Decision No 3/71 / ECSC ;
                                                               provisions of Article 9 (2) of Decision No 3/71 /ECSC ;
Whereas provision is made in the Coal Industry Act            Whereas the following remarks must be made in
for aid in respect of pithead stocks ; whereas pursuant       respect of the compatibility of the total amount of
to that Act the United Kingdom Government                      United Kingdom aids with the proper functioning of
proposes to grant the NCB over the years 1973/74 to            the common market :
1975/76 a subsidy of up to a maximum of £ 40
million towards the cost of maintaining pithead               — in 1974 there was no restriction of trade in coal
stocks ; whereas provision has been made for £ 2-0
million to be granted in 1974/75 ; whereas according                between the United Kingdom and the other
to UK Government estimates the NCB's pithead                        Community countries (Article 3 ( 1 ) ( 1 ) of Decision
stocks of coal and coke will by the end of March 1975               No 3/71 / ECSC),
exceed the limit laid down in Article 8 of Decision
                                                              — no alignments on the prices of other Community
No 3/71 / ECSC ; whereas the aid would thus meet the
                                                                    producers were notified in respect of British coal
criteria laid down in that Article ;                                in 1974,
                                                              — the prices of coking coal and steam coal in the
Whereas the aid, amounting to £ 450 million ,                       United Kingdom did not lead to indirect aids for
proposed by the UK Government in respect of the                     industrial users of coal in 1974,
period from 1 January 1974 to the end of March 1975
to cover losses may be regarded as fulfilling the condi­      — the closure of unprofitable pits leads to rationaliza­
tions laid down in Article 9 of Decision No 3 / 71 /                tion and the concentration of production in pits
ECSC ;                                                              where productivity is highest ;
                                                              Whereas       it can   therefore   be  said     that United
Whereas the covering of operating losses for the               Kingdom aids to the coal industry are compatible
1974/75 coal year relates to losses sustained in current
                                                              with the proper functioning of the common market ;
production ; whereas the Coal Industry Act provides
for a maximum of £ 210 million for this purpose for
the coal years 1973/74 to 1975/76 ; whereas the sum           Whereas this also applies if account is taken of aids
of £ 45-0 million has been made available for the
                                                              granted to the coal industry under Decision No
1 974/75 coal year ;                                           73 / 287/ ECSC ;
Whereas in view of oil supply difficulties the United         Whereas, under Article 11 ( 1 ) of Decision No 3/71 /
Kingdom 's overall energy supply situation is far from         ECSC the Commission must ensure that the aids auth­
clear ; whereas a sharp increase in coal imports is not       orized are used for the purposes set out in Articles 6
possible ; whereas the NCB is therefore concerned to           to 9 of that Decision ; whereas to this end it must be
maintain production and thus avoid the risk of an              informed in particular of the amount and apportion­
energy shortage ;                                              ment of such aids ,
 ---pagebreak--- No L 238 /24                        Official Journal of the European Communities                           10 . 9 . 75
HAS ADOPTED THIS DECISION :                                   5. Subsidy towards the NCBs expenditure on the
                                                                  regrouping of staff under the rationalization
                         Article 1                                programme, up to a maximum of £ 2 700 000 ;
                                                              6. Aids in respect of pithead stocks (£ 2 000 000) ;
The Government of the United Kingdom is hereby
authorized to grant to the British coal industry addi­        7. Subsidy towards the NCB's estimated operating
tional aid totalling £ 130 700 000 for the 1973/74 coal           losses in the 1974/75 coal year, up to a maximum
                                                                  of £ 45 000 000 .
year and aids totalling £ 73 650 000 for the 1974/75
coal year.
                                                                                     Article 2
The amount of £ 130 700 000 for the 1973/74 coal
year is intended to cover operating losses.                   The United Kingdom Government shall supply the
                                                               Commission by 15 November 1975 with particulars
The amount of £ 73 650 000 for the 1974/75 coal year           regarding the aids granted pursuant to this Decision,
is made up as follows :                                        in particular the amounts paid and the manner in
1 . To cover expenditure resulting from the retirement        which they were apportioned.
    of staff (£ 13 800 000);
2. Severance payments to miners made redundant as a                                  Article 3
    result of pit closures or to miners who are retrained
    and/or re-employed in the coal industry, up to a           This Decision is addressed to the United Kingdom .
    maximum of £ 5 800 000 ;
3. Reimbursement in full of the NCB's expenditure
                                                               Done at Brussels, 10 July 1975 .
    resulting from the premature retirement of miners
    (£ 3 700 000) ;
                                                                                        For the Commission
4. Assumption of responsibility for the costs of
    supplying concessionary coal to redundant miners                                        The President
    aged between 55 and 65, up to a maximum of £
    650 000 ;                                                                          François-Xavier ORTOLI