UK Coal cash aid inquiry urged by MP

Jan 28 2005 By Dave Black, The Journal

A North MP yesterday called for an investigation into the amount of taxpayers' money paid to the coal mining giant which is closing Ellington Colliery.

Since 2000, UK Coal has received £91m in state aid to keep pits open and support jobs and is in line to get a further £29m in the next three years.

The subsidy scheme was launched by the Government to support the coal industry and protect jobs but since it started UK Coal has closed seven pits, despite being the major beneficiary of the handouts.

Yesterday Wansbeck MP Denis Murphy said questions had to be asked, following the decision to close Ellington, over the company's use of the £120m.

He said: "The Department of Trade and Industry should take a step back and launch an inquiry into how all this public money is being used.

"It was made available to avoid pit closures, but UK Coal has been taking the money yet not protecting the industry. Ellington is an example of where they could have invested more money to tackle the current problems.

"There is further investment aid of almost £2m for Ellington on the table but the company has not approached the Government for help. It appears hell-bent on going ahead with the closure."

Since the state aid scheme was launched in 2000, UK Coal has closed Prince of Wales Colliery in Yorkshire, Clipstone in Notts, the four-pit Selby complex in Yorkshire and now Ellington, with the loss of more than 2,000 jobs.

Yesterday UK Coal spokesman Stuart Oliver said: "We have received operational aid to support pits at a time of record low world coal prices and investment aid where we have to find 70p in every £1 worth of investment at particular pits ourselves.

"Ellington and other pits would have closed before now if it had not been for this support and the aid we are currently receiving is also keeping open pits which would otherwise have closed.

"This is taxpayers' money and the DTI manages and monitors the scheme with intense scrutiny."

National Union of Mineworkers chairman Ian Lavery said: "I have said on numerous occasions there should be a governmental inquiry to ensure that the huge sums of taxpayers' money paid to UK Coal have not been frittered away by the company."

A DTI spokeswoman said: "There are no concerns about the way UK Coal has used the money. They have tried to keep pits open but sometimes they are no longer viable because of problems like geology and, sadly, Ellington Colliery is a case in point."

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