
1 
This Order may be cited as the Coal Industry (Restructuring Grants) Order 1989 and shall come into force on the third day after the day on which it is made.
2 
In this Order, unless the context otherwise requires–
 “the 1989/90 financial year” means the financial year of the British Coal Corporation ending in March 1990;
 “the Act” means the Coal Industry Act 1987;
 “the Corporation” means the British Coal Corporation or any wholly-owned subsidiary of theirs;
 “employees” means employees of the Corporation;
 “payments” means periodical or lump sum payments;
 “the relevant consolidated profit and loss account” means any consolidated profit and loss account of the British Coal Corporation and their subsidiaries prepared in accordance with a direction given under section 8(1) of the Coal Industry Act 1971 for the 1989/90 financial year;and references to payments, contributions or expenditure are references to payments, contributions or expenditure by the Corporation.
3 
The 1989/90 financial year shall be a specified financial year for the purposes of section 3(4)(a) of the Act.
4 
The kinds of expenditure specified in the Schedule to this Order shall be specified kinds of expenditure for the purposes of section 3(2)(a) of the Act in relation to the 1989/90 financial year.
5 
The maximum amount which may be paid under section 3 of the Act by way of grant in respect of the 1989/90 financial year in relation to the kinds of expenditure specified under a Head in the Schedule is that sum which represents 77 per cent. of–
(a) the total amount of the costs of the Corporation which are related to the kinds of expenditure specified under the Head and which fall to be charged to the relevant consolidated profit and loss account; or
(b) if a larger amount has been agreed in respect of those costs for the purposes of section 3(2)(b) of the Act, that larger amount.
6 
The limit specified in section 3(6) of the Act on the aggregate of grants under section 3(1) thereof is increased from £500 million to £750 million.
Michael Spicer
Parliamentary Under Secretary of State,
Department of Energy
23rd March 1989We approve,
David Maclean
Kenneth Carlisle
Two of the Lords Commissioners of Her Majesty’s Treasury
23rd March 1989
SCHEDULE
Articles 4 and 5


(i) Payments in respect of redundant employees made under section 81 of the Employment Protection (Consolidation) Act 1978.
(ii) Payments made for the purpose of assisting persons who leave the employment of the Corporation by virtue of redundancy or early retirement, being payments made under arrangements established by the Corporation.
(iii) Payments in respect of the loss of superannuation prospects by persons leaving the employment of the Corporation by virtue of redundancy or early retirement.
(iv) Contributions to superannuation funds maintained by virtue of section 37 of the Coal Industry Nationalisation Act 1946 in respect of any increase in the cost of retirement benefits paid before normal retirement age to persons who leave the employment of the Corporation by virtue of redundancy or early retirement.Head 2: Changes of work and place of employment
(v) Payments to or for the benefit of employees in connection with their removal or resettlement (with or without their dependants) by virtue of their place of employment being changed.
(vi) Payments to local authorities and housing associations for the provision of housing for employees on account of their place of employment being changed.
(vii) Expenditure on providing travel allowances or transport for employees on account of their place of employment being changed.
(viii) Payments made to supplement temporarily the earnings of employees on account of their place of employment being changed.
(ix) Payments made to compensate employees temporarily for any reduction in their earnings resulting from the nature of their work being changed.Head 5: Retraining
(x) Expenditure on the provision of retraining for persons who are to leave or have left the employment of the Corporation by virtue of redundancy or incapacity, being retraining provided under arrangements established by the Corporation.Head 6: New employment
(xi) Payments made under arrangements for the British Coal Corporation to reimburse their wholly-owned subsidiary British Coal Enterprise Limited for losses incurred by it in promoting new employment in coal mining areas or new employment for such persons as are mentioned in paragraph (x) above (whether in such areas or elsewhere).
