Kellingley Colliery

Dennis Skinner Excerpts

Wednesday 9th December 2015 Commons Chamber

[Yvette Cooper]

My hon. Friend is exactly right. I have also been contacted by constituents. One man who has worked in the coal industry at Kellingley for 29 years told me that his dad, who left in 1988, got three times as much as he will get in redundancy pay. These miners will get only statutory redundancy pay, rather than the enhanced redundancy deal that even Margaret Thatcher and Michael Heseltine made sure that miners got when they left the coal industry. Such a deal is recognition not only of the difficult job they do, but of how skilled it is and how hard it is for them to find similar skilled work in our communities.

[Mr Dennis Skinner (Bolsover) (Lab)]

It is even worse than that, because less than two years ago the coalition Government took £700 million out of the miners’ pension scheme. All they wanted was about £30 million or £40 million. They could have kept the pit going until all the reserves had been worked out.

[Yvette Cooper]

My hon. Friend is right. There is long-standing and deep concern about the miners’ pension scheme. The guarantee may have looked sensible many decades ago, but if we consider how it has played out, we will see that it is deeply unfair to so many miners across our communities. Pensions and redundancy and severance pay are all issues, as is concessionary coal. Miners who are just short of their 50th birthday will lose out, and if others get a job that involves working more than 25 hours a week—even if it is temporary work—they will end up losing their concessionary coal for good. That is no use, because it is a disincentive for them to get another job. The concessionary coal deal, as well as redundancy and severance pay, should be revisited. The Government should work with UK Coal on getting a fairer deal for miners who have worked for Kellingley and the coal industry for so long.

Kellingley has not been given the same sorts of training opportunities that Selby got when it closed. Miners need more skills training, retraining courses and support to be able to get new jobs in an area where skilled work is still too scarce. Support also has to be made available for our communities, because the pit has been at the heart of the community for so long. Kellingley club is now at risk, and the communities that depend on the coal industry are also being undermined by the last pit closure. I ask the Minister to look seriously at what more support can be given to the Kellingley miners. They have worked so hard to save the Government money, to support UK Coal and Kellingley, and to keep the pit open, but they feel that all they are getting in return is a kick in the teeth.

When Margaret Thatcher closed the pits in the 1980s on a massive scale, even she made sure that the miners got full redundancy pay and pensions. When Michael Heseltine closed pits in the 1990s, he made sure that miners got full redundancy pay and pensions. When the Prince of Wales and Selby pits closed under the Labour Government, we made sure that the miners got not just redundancy pay and pension support, but retraining, the coalfield regeneration taskforce and support for communities as well.

What miners are getting now under this Tory Government is the worse deal of all, so I urge the Minister to look at it again—not to blame this on the market or on UK Coal, but for the Government and UK Coal together to provide the miners, who have worked so hard and helped both UK Coal and the Government, with the support and the recognition that they deserve. Another of my constituents contacted me to say that the miners give so much and take so many risks, as do their families, who would watch them go to work each day. Let us make sure that, as the miners walk out of their last shift, as they leave Kellingley for the last time, we show them the respect that they need.

I and many of my colleagues still feel that this is deeply sad. We deeply regret that we are watching the last pit close long before we need to, even though we could have clean coal technology and support both the coal industry and security of supply. We could cut our carbon emissions too. But if that pit is to close before Christmas, in the next few days, let us at least do everything we can to get those miners some justice and the respect that they deserve.

--- Later in debate ---

[Andrea Leadsom]

The view was that it was a matter of only a few short weeks, and at that time it was considered that a state aid route would take too long and not work within the timeframe needed.

In April 2014, the Government agreed in principle to provide the company with financial support. In delivering on that commitment there were many twists along the way, including a failed sales process by the company and the withdrawal of an offer of support from a mining competitor. That process concluded with the Government providing a total of £6.5 million of loan funding in September 2014.

By supporting the company’s managed closure plan, we aimed to mitigate the worst impacts of closure on the workers, local communities and the supply chain. Without that support, UK Coal would have failed earlier in 2014 with the immediate loss of more than 1,900 jobs. UK Coal did subsequently present a state aid proposal in January 2015 to the Government. That sought state aid support of £338 million to prolong the working life of the mines by three years through to 2018. It is worth reminding the House that state aid approval represents the European Commission’s permission for the Government to spend UK taxpayers’ money, and consequently it has to be affordable and represent value for money. The state aid request did not pass the value-for-money hurdle, but we have continued to support the company.

[Mr Skinner]

There is another figure that the Minister is failing to mention. She is trying to argue that this Conservative Government have tried to save the pit. In truth, since 1984, 170 pits have closed, including Kellingley, and fewer than 10 of them were closed during the 13 years of the Labour Government. I think that tells a story: the Tories like closing pits.

[Andrea Leadsom]

As I said, the Government sought to support the managed closure of the pit. Following weak coal sales last winter and a deterioration in world coal prices, UK Coal approached the Government again in February 2015 requesting additional funding to keep its closure plan on track. As a result, the Government committed in March 2015 to providing up to a further £10 million of financial support and the provision of concessionary coal entitlements for eligible miners, estimated at £18 million, subject to state aid approval.

The Government, as a further commitment to the miners, also agreed to the deferral of all repayments on the previous loans until after the miners had received their redundancy and other contractual entitlements at both Thoresby and Kellingley.