CELEX: 31974D0612
Language: en
Date: 1974-10-16 00:00:00
Title: 74/612/ECSC: Commission Decision of 16 October 1974 approving aids from the United Kingdom for the financial year 1973/74 for the benefit of undertakings in the coal industry

No L 335 /26                               Official Journal of the European Communities                              14. 12 . 74
                                                      COMMISSION
                                                     COMMISSION DECISION
                                                         of 16 October 1974
              approving aids from the United Kingdom for the financial year 1973/74 for the benefit
                                                of undertakings in the coal industry
                                                  (Only the English text is authentic)
                                                            (74/612/ECSC)
THE COMMISSION OF THE EUROPEAN                                                                                  in £ 1 000 000
COMMUNITIES ,                                                          To cover expenditure on pensions                  19-8
Having regard to the Treaty establishing the                           For    severance   payments    to   redundant
European Coal and Steel Community, and in                              miners and/or for the vocational retraining
particular Articles 2, 3 , 4 and 5 thereof;                            of staff                                          10-0
                                                                       To cover the NCB 's expenditure resulting
Having regard to Commission Decision No 3 /71 /                        from the early retirement of staff                 4-5
ECSC (*) of 22 December 1970 on Community rules
for interventions by Member States for the benefit of
the coal industry ;                                                    To cover expenditure on the supply of
                                                                       concessionary coal to redundant miners
                                                                       aged from 55 to 65 years                           0-4
Having regard to Decision No 73 /287/ECSC (2) of
25 July 1973 on coking coal and coke, and in                           For the retraining and retention of staff          3-7
particular Article 9 ( 1 ) thereof;
                                                                       Aid in respect of pithead stocks                   3-7
Having consulted the Council ;
                                                                       To cover the NCB's estimated operating
Whereas the British Government has informed the                        losses during the 1973 /74 coal marketing
Commission, pursuant to Article 2 of Decision No                       year                                              75-0
3/71 /ECSC, of the financial measures which it
proposed to implement directly or indirectly for the                   Aid in respect of coal for power stations     ± 15-4
benefit of the coal industry during the 1973/74 coal
marketing year (3); whereas of these measures the
following aids require approval pursuant to the
aforementioned Decision ;                                              Whereas the aforementioned aids are in accordance
                                                                       with the criteria laid down in Articles 6 to 9 of
                                                                       Decision No 3 /71 /ECSC for the admissibility of
Whereas the British Government proposes to grant                       such State assistance ;
to the British coal industry the following aids for
the 1973 /74 coal marketing year :
                                                                       Whereas aid towards the covering of expenditure on
                                                                       pensions was introduced by the 1973 Coal Industry
(*) OJ No L 3 , 5 . 1 . 1971 , pp . 7 et seq .                         Act, which makes provision for a maximum payment
(2) OJ No L 259 , 15 . 9 . 1973 , p. 41 .                              of £ 60 million for the financial years 1973 /74 to
(3) The 1973 /74 coal marketing years runs from the                     1975/76 ; for 1973/74 provision has been made for
    beginning of April 1973 to the end of March 1974.                  a first instalment of £ 19-8 million ;
 ---pagebreak---   14. 12 . 74                           Official Journal of the European Communities                              No L 335 /27
 Whereas such aid is granted to retired miners ;                   of concessionary coal ; whereas the amount of aid
 Whereas the pensions granted by the NCB are not                   provided for 1973 /74 is £ 400 000 ;
 related to the production of coal and are covered in
 part by the aid ;
                                                                   Whereas the purpose and form of the aid show that
                                                                   the measure is in accordance with the criteria set out
 Whereas the purpose and form of the aid show that                 in Article 6 ( 1 ) ( 1 ) of Decision No 3 /71/ECSC ;
 the measure is in accordance with the criteria set out
 in Article 6 ( 1 ) ( 1 );
                                                                   Whereas the aid towards the retraining and retention
Whereas aid towards severance payments for miners                  of staff is a supplement to be paid 'by the British
 about     to  be      made  redundant    and/ or   for  the       Government to help to cover the estimated sum of
 vocational retraining of staff was introduced by the              £ 7-5 million which the NCB will have to spend on
 1965 Coal Industry Act; whereas the Coal Industry                 the regrouping of staff which will be required as part
 Act of 1973 continues the aid and makes provision                 of the rationalization programme ; Whereas, in order
 for payment of a maximum of £ 60 million for the                  to ensure that qualified workers are retained, the
 financial years 1973 /74 to 1975/76 ; whereas for                 costs falling on the miners affected by the
 1973 /74 provision has been made for a first                      regroupment schemes must be reimbursed to them
 instalment of £ 10 million ;                                      by the NCB ; whereas such costs include removal
                                                                   costs, resettlement costs, travel expenses and
                                                                   compensation for a temporary loss of income;
Whereas such aid is granted in respect of miners
 leaving mining as a result of the closure of pits,
 and also of those being retrained and/or re-employed              Whereas the British Government is to contribute
 in coal mining ;                                                  £ 3-7 million towards such costs to be borne by
                                                                   the NCB in respect of 1973 /74 ;
 Whereas the purpose and form of the aid show that
 the measure is in accordance with the criteria set out
 in Article 6 ( 1 ) ( 1 ) and 7 (3 ) of Decision No 3/71 /         Whereas the purpose and form of the aid show that
                                                                   the measure is in accordance with the criteria set out
 ECSC ;
                                                                   in Article 7 (3 ) of Decision No 3 /71 /ECSC ;
Whereas aid towards the covering of the NCB's
expenditure resulting from the early retirement of                 Whereas provision is made for aid in respect of
 staff was introduced by the 1967 Coal Industry Act ;              pithead stocks in die 1973 coal industry Act; whereas
whereas for 1973 /74 provision has been made for                   the British Government therefore proposes to grant
 a first instalment of £ 4-5 million ;                             the NCB a supplement for the years 1973 /74 and
                                                                   1975/76 to cover the cost of maintaining pithead
Whereas such aid is granted to miners retired                      stocks, up to a maximum of £ 40 million ; whereas
prematurely; whereas such retirement was necessary                 provision has been made for an initial sum of
on account of the drop in production ( as a result                 £ 3-9 million to be granted for 1973 /74 ;
of marketing difficulties ) in 1967/70 ; whereas the
expenditure on pensions incurred by the NCB is                    Whereas the purpose and form of the aid show that
not related to the production of coal and is covered              the measure is in accordance with the criteria set out
in full by the aid ;                                               in Article 8 of Decision No 3/71 /ECSC ;
Whereas the purpose and form of the aid show that                 Whereas the aid, amounting to £ 90-4 million,
the measure is in accordance with the criteria set out            proposed by the British Government in respect of the
in Article 6 ( 1 ) of Decision No 3 /71 /EEC ;                    period 31 March 1973 to the end of March 1974
                                                                  to cover losses (including £ 75 million to cover
                                                                  operating losses in the 1973/74 coal marketing year
Whereas the aid towards the covering of the NCB's                  and £ 15-4 million as aid in respect of coal for
expenditure on the supply of concessionary coal to                power stations) can be regarded as compatible with
redundant miners is granted in respect of expenditure             the provisions of Article 9 of Decision No 3/71 /
which is not related to the production of coal ;                  ECSC ;
whereas the NCB's expenditure on the supply of
concessionary coal to miners between the ages of
55 and 60 made redundant during 1973 is fully                     Whereas the covering of operating losses for the
reimbursed by the British Government, up to the                   1973 /74 coal marketing year relates to losses
age of 60, while thereafter, and for miners made                  sustained in current production ; whereas the Coal
redundant between the ages of 60 and 65, the aid                   Industry Act provides for a maximum of £ 210
is to cover 50 % of the expenditure on the supply                 million for the coal marketing years 1973 /74 and
 ---pagebreak--- No L 335/28                           Official Journal of the European Communities                               14. 12. 74
1 975/76 -,  whereas      the initial payment already            Whereas calculations reveal that the total British
authorized amounts to £ 75 million;                              aids, including those outside the framework of
                                                                 Article 4 of Decision No 3 /71/ECSC, will amount
                                                                 to £ 151-8 million (= 303-6 u.a. = 2-33 u.a./metric
Whereas aid in respect of coal for power stations is             ton); whereas compared to all other Community
granted to the NCB by the 1973 Coal Industry Act                 countries the proposed aid for the British coal
and relates to supplementary quantities of coal                  industry is the lowest per metric ton produced;
purchased by British power stations; whereas the
 1973 Coal Industry Act provides provisionally for
a maximum of £ 50 million of aid to be granted                   Whereas the following remarks must 'be made in
for the period 1973 /74 to 1975/76-, whereas the initial         respect of the compatibility of the total amount of
sum for 1973 /74 is £ 15-4 million ;                             British aids with the proper functioning of the
                                                                 common market :
Whereas the increased production in 1973 compared
to 1972 ( approximately + 20 million metric tons)                — the compatibility of the tonnage forecasts drawn
can be attributed not to the grant of aids to cover                  up for the British coal industry for 1973 with
losses but to 'catching , up', as a sharp decline in                 the Community's overall supply position in
 production occurred in 1972 as a result of strikes ;                respect of coal and coke is in accordance with
                                                                     the provisions of Article 3 ( 1 ) ( 1 ) of Decision
                                                                     No 3 /71/ECSC ;
Whereas in 1973 , 17 small pits with an annual
production capacity of approximately 1-3 million
metric tons were closed; whereas such closures                   — the grant of aid does not mean that any
                                                                     restriction of the trade in coal between the
affected approximately 8 000 employees ; whereas if
the further 8 000 persons who will probably be                       United Kingdom and the other Community
made redundant as a result of rationalization are                    countries has been made for 1973 (Article 3 ( 1 )
                                                                      ( 1 ) of Decision No 3/71 /ECSC);
added to this figure, the total number of persons
made redundant in 1973 comes to approximately
16 000 ;                                                         — price alignments to meet those of other producers
                                                                     in the Community have not been notified to the
                                                                     Commission for 1973 in respect of British coal;
Whereas not only large parts of the coal-mining
regions but also other parts of the country have                 — the prices of British coking coal and steam coal
a weak economic structure ; whereas a rapid re­                      do not amount to indirect aid to            industrial
 structuring is not possible at present;                             consumers of coal;
Whereas, in view of this situation it is clear that if           — the        closure   of   unprofitable  pits  leads    to
the NCB had to cease its activities and dismiss                      rationalization       and   the    concentration     of
overnight more than 300 000 employees, whose jobs                    production       on    pits  where   productivity     is
it at present provides, insurmountable regional and                  highest;
social difficulties would arise ; whereas in view of
these circumstances . it follows that the covering of
operating losses is in accordance with the provisions            Whereas it can therefore be said that the British
of Article 9 ( 1 ) ( 1 );                                        aids for the benefit of the coal industry are
                                                                 compatible with the proper functioning of the
                                                                 common market;
Whereas it must be pointed out, furthermore, that
the aid to cover losses on the operation of mines
does not exceed the estimated overall operating
losses ; whereas the aid is therefore in accordance              Whereas this also applies if account is taken of aids
with the provisions of Article 9 (2) of Decision                 granted to the coal industry under Decision No
                                                                 73/287/ECSC ;
No 3/71/ECSC;
Whereas an examination of the compatibility of the               Whereas, pursuant to Article 11 ( 1 ) of Decision
British aid with the proper functioning of the                   No 3 /71 /ECSC, the Commission must ensure that
common market (Article 3           (1 ) of Decision No           the aids authorized are used for the purposes set
3 /71/ECSC) must relate not only to the aids provided            out in Articles 6 to 9 of that Decision; whereas the
for in this Decision but also to all other financial             Commission must be informed in particular of the
measures for the benefit of the British coal industry            amount and apportionment of these aids and the
(Article 3 (2) of Decision No 3/71 /ECSC);                       manner in which they are apportioned,
 ---pagebreak--- 14. 12. 74                           Official Journal of the European Communities                         No L 335 /29
HAS ADOPTED THIS DECISION :                                     7. supplement to cover the NCB's estimated losses
                                                                    on mine operations during the 1973 /74 coal
                                                                    marketing year, up to a maximum of
                        Article 1
                                                                    £ 75 million ;
The Government of the United Kingdom is hereby
authorized to grant the following aids for the benefit          8 . payment to the NCB of aid for power station
of the British coal industry for 1973/74:                           coal in respect of supplementary quantities of
                                                                    coal purchased by the British power stations, up
1 . assumption of responsibility for expenditure on                 to but not exceeding a maximum of £ 15-4
    pensions for retired miners (£ 19-8 million);                   million .
2. severance payments to miners made redundant
    as a result of the closure of pits and/or for miners                               Article 2
    to be retrained or re-employed, up to a maximum
    of £ 10 million;
                                                                The British Government shall notify the Commission
                                                                by 30 November 1974 of the details of the aids
3 . reimbursement in full of the NCB's expenditure              granted pursuant to this Decision, and in particular
    resulting from the early retirement of miners               as regards the amounts paid and the manner in
    (£ 4-5 million);                                            which they are apportioned.
4. assumption of responsibility for the costs of
    supplying concessionary coal to redundant miners
                                                                                       Article 3
    aged between 55 and 65 years, up to a maximum
    of £ 400 000 ;
                                                                This Decision is addressed to the United Kingdom.
5 . supplement to cover the NCB's expenditure on
    the regrouping of staff which will be required
    as part of the rationalization programme, up to             Done at Brussels, 16 October 1974.
    a maximum of £ 3-7 million ;
                                                                                                For the Commission
6. supplement to cover the cost of maintaining                                                      The President
    pithead stocks, up to a maximum of
    £ 3-7 million ;                                                                            Francois-Xavier ORTOLI