Tom Greatrex MP, Labour’s Shadow Energy Minister, has pressed the Secretary of State for Energy on the future of UK Coal and the pits at Thoresby and Kellingley, raising a number of urgent concerns about the Government’s handling of this issue.

Tom Greatrex MP said:

“There are real concerns that the Government is adopting an inflexible attitude to the rules regarding potential support for UK Coal. With 1,300 jobs at stake, we need to have confidence that the Government is doing it all can to prevent immediate job losses and the impact on those communities affected.

“David Cameron has been using the EU as an excuse to claim that his hands are tied. But yesterday, the European Commission indicated that the rules regarding state aid for coal closures may be far more flexible than the Prime Minister has suggested. The Government must urgently clarify their position and ensure that they are taking all possible steps to deliver the best deal for our industry and the local communities.

“Just last month, the Miner’s Pension Fund transferred £700m to the Government. The collieries at Thoresby and Kellingley need just a fraction of that in support.”

The full letter from Tom Greatrex to Ed Davey is below:

Ed Davey
Secretary of State for Energy and Climate Change
3 Whitehall Place
SW1A 2AW

3 April 2014
Dear Ed,

During our exchange at Energy Questions in Parliament this morning, I raised the issue of UK Coal and the continued operation of Thoresby and Kellingley collieries.

As I expressed this morning, there are real concerns that the Government’s attitude and approach in relation to the consideration of financial support for UK Coal under State Aid and the EU Coal Closure scheme is much more rigid than the approach that the Commission has indicated they are prepared to consider.

Specifically, my understanding is that yesterday the Commission indicated that, contrary to the judgement of your officials, the fact that no application had been made by the UK before 2010 under this scheme would not prohibit an application now. Indeed, the Commission has confirmed they are currently considering a bid from the Czech Republic for a mine that has not been in receipt of State Aid from 2010.

Your officials have suggested that there would be a 6 month process for consideration of an application under the coal closure scheme. However, the Commission have confirmed that there is a fast track process in which the application can be considered in 2 months. It is the responsibility of the Member State to indicate whether they want the application to be considered on this accelerated timetable.

Given these discrepancies, I would request that you urgently clarify the position and take forward consideration of an application for State Aid as a matter of urgent priority. There are 1,300 jobs directly at stake here which necessitate full and urgent consideration of these issues.

Furthermore, as I also raised this morning, it is now clear that a little over a month ago the trustees of the Miners Pension Fund paid £700m from their fund to the Government. The collieries at Thoresby and Kellingley need just a fraction of that in support. Given this factor, I would urge you to ensure that you are taking all possible steps to deliver the best deal for our industry and the local communities.

Given the level of concern and public comment in the last 24 hours, including from the Prime Minister this morning, I am copying this correspondence to both a number of MPs who raised the issue this morning and also the media.

Yours,
Tom

Tom Greatrex
Shadow Energy Minister
MP for Rutherglen and Hamilton West