Coal Industry Act 1977
1977 c.39
An Act to increase the limit on the borrowing powers of the National Coal Board, to provide for grants by the Secretary of State to the Board and other persons, to extend the Board’s powers and the power to provide pensions and other benefits under the Coal Industry Nationalisation Act 1946.
Finance
1 Borrowing powers of National Coal Board.
C11
For section 1(3) and (4) of the Act of 1965 (subsection (3) of which limits the sums borrowed by the Board and their wholly owned subsidiaries to £1,100 million or such greater sum not exceeding £1,400 million as the Secretary of State may by order specify) substitute the following subsections—
3
Without prejudice to subsection (4) of this section, the aggregate amount outstanding in respect of the principal of —
a
sums borrowed by the Board otherwise than from any of their wholly owned subsidiaries (including any sum which under section 1(4) of the Coal Indusrtry Act 1973 is deemed to have been so borrowed), and
b
sums borrowed by any wholly owned subsidiary of the Board otherwise than from the Board or from another such subsidiary,
shall not exceed the limit of £1,800 million, but the Secretary of State may with the approval of the Treasury, on not more than two occasions, by order made by statutory instrument increase or further increase that limit by £400 million (so that the limit becomes £2,200 million or on the second occasion £2,600 million).
4
The aggregate of the amounts outstanding in respect of sums borrowed temporarily by the Board under subsection (1) and subsection (2A) of this section—
a
shall not at any time exceed such limit as the Secretary of State may from time to time direct, and
b
at the end of any financial year of the Board shall not be such as to permit any accumulated deficit on the Board’s revenue account to exceed £50 million or such lesser or greater sum, but not exceeding £100 million, as the Secretary of State with the approval of the Treasury may specify by order made by statutory instrument.
C12
In Part I of Schedule 1 to this Act the provisions of the said section 1 of the Act of 1965, and of section 2 of the Act of 1973 (which also relates to the borrowing powers of the Board and its subsidiaries), are set out as amended by the enactments specified in Part II of that Schedule.
2. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F1
4. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F2
5. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F3
6. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F4
7 Payments to redundant workers. C2
1
For the purpose of providing assistance to persons made redundant by the closure of coal mines F5or coking plants, the reduction in the number of persons employed thereat or the consequent reduction in ancillary services and facilities the Secretary of State may make a scheme providing for the making of payments to or in respect of persons of any prescribed class who at any time between 17th July 1967 and F629th March 1987—
a
are employed at a coal mine or at any place of a prescribed class used for providing services or facilities ancillary to the working of one or more coal mines, F7or
b
are employed by any person carrying on in Great Britain a business which consists wholly or mainly of the production of coke and are so employed either at a coking plant or at any place of a prescribed class used for providing services or facilities ancillary to the operation of one or more coking plants;
and who in either case become redundant within the meaning of the scheme in such circumstances as may be prescribed.
2
The payments to be made under a scheme under this section shall be either—
a
payments by the Secretary of State to persons to whom the scheme applies in accordance with subsection (1) above, or
3
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F9
4
The aggregate amount of the payments made by the Secretary of State under this section and section 3 of the Act of 1967 during the financial years of the F8Corporation ending in March 1974, 1975, 1976, 1977 and 1978 shall not exceed £100 million.
F10C3C45
7
The power to make a scheme under this section shall be exercisable by order contained in a statutory instrument, and an order made under this subsection may be varied or revoked by a subsequent order so made.
An order shall not be made under this subsection unless a draft thereof has been laid before and approved by the Commons House of Parliament.
8
In this section—
“concessionary coal” means coal or other solid fuel supplied free of charge or at reduced prices,
“prescribed” means prescribed by a scheme under this section.
9
Any sums required by the Secretary of State for making payments under a scheme under this section shall be defrayed out of money provided by Parliament.
10
Section 3 of the Act of 1967, section 2 of the Act of 1971, and section 4 of the Act of 1973, which are superseded by this section, shall cease to have effect, but nothing in this Act is to be taken to prejudice the validity of any scheme made before the commencement of this Act under section 3 of the Act of 1967, and any such scheme may be varied or revoked as if made under this section.
8. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F14
Other provisions
9 Activities relating to petroleum,
1
The F22Corporation shall have power to carry on any activities consisting of—
a
the acquisition and treatment of petroleum.
b
the manufacture and sale of products of petroleum, or
c
the treatment of products of petroleum for the purpose of rendering them saleable,
if it appears to the F22Corporation that those activities will or may ultimately provide an outlet for coal or products of coal, or may lead to the development of chemical processes or methods, or acquisition of commercial, industrial or technological experience or knowledge which may lead to new or improved uses of coal or products of coal.
2
3
The F22Corporation shall have power to do anything and to enter into any transaction (whether or not involving expenditure, borrowing or lending, or the acquisition of any property or rights) which in the opinion of the F22Corporation is calculated to facilitate the proper exercise of their powers under this section, or is incidental or conducive to the exercise of those powers.
4
The provisions of this section are without prejudice to the duties and powers conferred on the F22Corporation by section 1 of the Act of 1946.
5
In this section and section 10 below “petroleum” means any of the following (other than coal) namely—
a
mineral oil, natural gas and bituminous shales;
b
deposits not mentioned in the preceding paragraph from which oil can be extracted by destructive distillation; and
c
hydrocarbons which are related to mineral oil and are not mentioned in the preceding paragraphs.
10 Activities relating to minerals other than coal or petroleum.
1
The F15Corporation shall have power—
a
to work and get any minerals, other than coal or petroleum, which are discovered in the course of searching or boring for, or working and getting, coal, and
b
to carry on such activities as may appear to the F15Corporation to be requisite, advantageous or convenient for them to carry on for or in connection with the working and getting by the F15Corporation of minerals (other than coal or petroleum) which have been discovered in the course of searching or boring for, or working and getting, coal.
2
The F15Corporation shall have power to do anything and to enter into any transaction (whether or not involving expenditure, borrowing or lending, or the acquisition of any property or rights) which in the opinion of the F15Corporation is calculated to facilitate the proper exercise of their powers under this section, or is incidental or conducive to the exercise of those powers.
3
The provisions of this section are without prejudice to the duties and powers conferred on the F15Corporation by Section 1 of the Act of 1946.
11 Overseas activities.
1
Section 1 of the Act of 1946 (which states the F23Corporation’s duties and powers) shall not be limited by section 63(3) of that Act (references in that Act to activities to be limited to activities in Great Britain).
2
Without prejudice to the effect of subsection (1) above, the F23Corporation shall have power to do anything outside Great Britain—
a
which appears to the F23Corporation requisite, advantageous or convenient, and
b
which the F23Corporation are required or authorised to do in Great Britain,
whether or not what is done under this subsection is related to the working and getting of coal in Great Britain.
3
For the avoidance of doubt it is hereby declared that subsection (2) above authorises the F23Corporation to work and get coal outside Great Britain.
4
The F23Corporation shall not do anything outside Great Britain except—
a
with the consent in writing of the Secretary of State, and
5
Subsection (4) above shall not apply to—
a
selling or supplying for export,
b
supplying imported goods in Great Britain.
F246
Subsection (4) above shall not apply to anything done with consent given under section 2(2) of the Overseas Development and Co-operation Act 1980 (powers of statutory bodies in relation to furnishing of assistance to, or for the benefit of, overseas countries).
7
This section shall not affect the M9National Coal Board (Additional Powers) Act 1966 (petroleum and natural gas) and no account shall be taken of that Act for the purposes of subsection (2) above.
C138
Section 2 of the M10Coal Industry Act 1949, which is superseded by this section, shall cease to have effect.
12 Pensions.
C51
In section 37 of the Act of 1946 (regulations about pension schemes) after subsection (1) insert the following subsection—
1A
Regulations may be made for providing pensions, gratuities and other like benefits in favour of persons specified in the Table in Schedule 2A to this Act, and references in subsection (1)(c) above to the purposes of paragraphs (a) and (b) of that subsection shall include references to the purposes of this subsection.
C52
After Schedule 2 to the Act of 1946 insert, as Schedule 2A, the provisions set out in Schedule 3 to this Act.
13 Administrative expenses.
Any administrative expenses incurred by the Secretary of State for the purposes of this Act shall be paid out of money provided by Parliament.
14 Interpretation.
1
In this Act—
“the Act of 1946” means the M1Coal Industry Nationalisation Act 1946;
“the Act of 1965” means the M2Coal Industry Act 1965;
“the Act of 1971” means the M3Coal Industry Act 1971;
“the Act of 1973” means the M4Coal Industry Act 1973;
“the Act of 1976” means the M5National Coal Board (Finance) Act 1976;
“the Board” means the National Coal Board;
F16“the Corporation” means the British Coal Corporation;
“wholly owned subsidiary” shall be construed in accordance with F17F18section 736 of the Companies Act 1985.
2
Except so far as the context otherwise requires, any reference in this Act to an enactment shall be construed as a reference to that enactment as amended or extended by or under any other enactment.
15 Amendments and repeals.
C61
The minor and consequential amendments in Schedule 4 to this Act shall have effect.
C62
The enactments specified in Schedule 5 to this Act shall be repealed to the extent specified in the third column of that Schedule.
16 Citation, commencement and extent.
1
This Act may be cited as the Coal Industry Act 1977, and the Coal Industry Acts 1946 to 1976 and this Act may be cited together as the Coal Industry Acts 1946 to 1977.
2
Th is Act shall come into force at the expiration of a period of one month beginning with the date on which this Act is passed.
3
This Act does not extend to Northern Ireland, but without prejudice to the provisions of this Act relating to activities of the Board outside Great Britain.
SCHEDULES
C7SCHEDULE 1 Borrowing by Board
The text of ss. 1(1)(2), 11(8), 12(1)(2), 15(1)(2), Schs. 1, 3, 4 paras. 1(1)—(7), 2, 3, Sch. 5 Pts. I, II is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.
Part I
Section 1 of the Act of 1965 as amended
1 Borrowing by, and loans by Minister to, National Coal Board.
1
Subject to subsections (3) and (4) of this section, the National Coal Board (hereafter in this Act referred to as “the Board”) may borrow temporarily, by way of overdraft or otherwise, either from the Secretary of State or, with the consent of the Secretary of State, from any other person, such sums in sterling as the Board may require for meeting their obligations and discharging their functions.
2
Subject to subsection (3) of this section, the Board may borrow (otherwise than by way of temporary loan) from the Secretary of State such sums in sterling as the Board may require in connection with their functions for all or any of the following purposes, that is to say—
a
for meeting any expenses properly chargeable to capital, being expenses incurred in connection with the provision or improvement of assets ;
b
for the provision of working capital ;
c
for acquiring an undertaking or part of an undertaking ;
d
for lending money to, or meeting a guarantee given for the benefit of, any person for the purpose of an undertaking carried on by him or, where that person is a body corporate, an undertaking carried on by a subsidiary of that body corporate within the meaning of section 154 of the M6Companies Act 1948 ;
e
for subscribing for or acquiring shares, stock, debentures, debenture stock, or other securities of a like nature, of a body corporate, otherwise than by way of investment ; (f)to pay off any money borrowed by the Board ;
g
for any purpose for which capital moneys are properly applicable (whether or not specified in the foregoing paragraphs of this subsection).
2A
The Board with the consent of the Secretary of State (which shall require the approval of the Treasury) may borrow in a currency other than sterling any sum which they have power to borrow in sterling from the Secretary of State.
3
Without prejudice to subsection (4) of this section, the aggregate amount outstanding in respect of the principal of—
a
sums borrowed by the Board otherwise than from any of their wholly owned subsidiaries (including any sum which under section 1(4) of the Coal Industry Act 1973 is deemed to have been so borrowed), and
b
sums borrowed by any wholly owned subsidiary of the Board otherwise than from the Board or from another such subsidiary,
shall not exceed the limit of £1,800 million, but the Secretary of State with the approval of the Treasury may, on not more than two occasions, by order made by statutory instrument increase or further increase that limit by £400 million (so that the limit becomes £2,200 million or on the second occasion £2,600 million).
4
The aggregate of the amounts outstanding in respect of sums borrowed temporarily by the Board under subsection (1) and subsection (2A) of this section—
a
shall not at any time exceed such limit as the Secretary of State may from time to time direct, and
b
at the end of any financial year of the Board shall not be such as to permit any accumulated deficit on the Board’s revenue account to exceed £50 million or such lesser or greater sum, but not exceeding £100 million, as the Secretary of State with the approval of the Treasury may specify by order made by statutory instrument.
5
The Board shall not have power to borrow money except in accordance with this section or with section 2(3) of the M7Coal Industry Act 1973.
6
The Secretary of State may lend to the Board any sums which the Board have power to borrow under subsection (1) or (2) of this section.
7
[Paragraph (a) makes textual amendments in the Act of 1946, and defines the M8Coal Industry Nationalisation Act 1946 as “the Act of 1946”. The remaining provisions are repealed by this Act.]
8
Any power conferred by a provision of this section to make an order shall include power to vary or revoke the order by a subsequent order made under that provision ; but no such power shall be exercisable unless a draft of the order has been laid before the Commons House of Parliament and approved by a resolution of that House.
Section 2 of the Act of 1973 as amended
2 Borrowing powers of the Board and its subsidiaries and powers to guarantee loans.
1
[Repealed].
2
In accordance with any general authority given by the Secretary of State with the approval of the Treasury, the Board may under subsection (1) or subsection (2A) of section 1 of the Act of 1965 borrow temporarily from any person other than the Secretary of State any sum which they have power to borrow under either of those subsections with the consent of the Secretary of State.
3
With the consent of the Secretary of State and the approval of the Treasury the Board may borrow (otherwise than by way of temporary loan) from the Commission of the European Communities or from the European Investment Bank (established by Article 129 of the EEC Treaty) any sum in sterling which the Board have power to borrow from the Secretary of State under section 1(2) of the Act of 1965.
4
It is hereby declared for the avoidance of doubt that references in section 1 of the Act of 1965 to borrowing by the Board do not include borrowing by subsidiaries of the Board.
5
The Board shall not make any loan to any of their subsidiaries except with the consent of the Secretary of State and the approval of the Treasury or in accordance with any general authority given by the Secretary of State with the approval of the Treasury.
6
The Board shall not exercise their power to guarantee the repayment by any person of money lent to him, or the payment of interest on money lent to any person, unless the Secretary of State gives his consent or it is exercised in accordance with a general authority given by the Secretary of State.
7
It shall be the duty of the Board to exercise their control over their wholly owned subsidiaries so as to secure that no such subsidiary guarantees the repayment by any person of money lent to him, or the payment of interest on money lent to any person, except with the consent of the Secretary of State or in accordance with a general authority given by him.
8
[Repealed].
Part II
Section 2 of the Act of 1973 is set out as amended by this Act.
section 4(1) of the Act of 1971,
section 2 of, and paragraph 3 of Schedule 1 to, the Act of 1973,
paragraph 2 of Schedule 4 to the Statutory Corporations (Financial Provisions) Act 1975,
orders under the Ministers of the Crown (Transfer of Functions) Act 1946, and
this Act.
Section 2 of the Act of 1973 is set out as amended by this Act.
SCHEDULE 2 . . . F19
Sch. 2 repealed (with saving) by Coal Industry Act 1987 (c. 3, SIF 86), s. 10(3), Sch. 3 Pt. I note
C8SCHEDULE 3
The text of ss. 1(1)(2), 11(8), 12(1)(2), 15(1)(2), Schs. 1, 3, 4 paras. 1(1)—(7), 2, 3, Sch. 5 Pts. I, II is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.
To be inserted in the Act of 1946 as Schedule 2A
Eligibility for Superannuation Rights
The table below sets out classes of persons for whom rights may be provided under section 37(1A) of this Act.
Table
1
Any person who has been in the employment of a subsidiary of the Board.
2
Any person who has been in the employment of a body corporate in which the Board then had an interest of a kind defined by regulations under section 37 of this Act and which was then, or at any earlier time, a subsidiary of the Board.
3
1
Any person who has been in the employment of a body corporate to which this head then applied.
2
This head applies to a body corporate in which the Board, or a subsidiary of the Board, has an interest of a prescribed kind where—
a
more than one-half in nominal value of the equity share capital of the body corporate is held by nationalised bodies, or
b
its members consist of or include nationalised bodies, and those nationalised bodies can together control the composition of the board of directors of the body corporate, or
c
the body corporate is a subsidiary of another body corporate to which this head applies.
3
In this head “prescribed” means prescribed by regulations under section 37 of this Act, and those regulations may prescribe different kinds of interests for cases within paragraphs (a), (b) and (c) above respectively.
4
Any person who has been in the employment of a partnership where—
a
the Board or a subsidiary of the Board was one of the partners, and
b
that partner, together with any other partners who were nationalised bodies, had an interest, or interests, in the partnership satisfying conditions prescribed by regulations under section 37 of this Act.
5
Other persons, so far as benefits in their favour are by reference to the employment of persons within heads 1, 2, 3 or 4 above.
In this Table—
“nationalised body”means—
a
a body corporate established by or under any enactment for the carrying on of any industry or part of an industry, or of any undertaking, under national ownership or control, or
b
a subsidiary of such a body corporate,
“subsidiary” has the meaning given by section 154 of the Companies Act 1948.
Schedule 4 Minor Amendments
Coal Industry Nationalisation Act 1946 (c.59)
1
C141
The Act of 1946 shall be amended as follows.
C142
For section 1(2)(e) substitute the following paragraph—
e
any activities which can advantageously be carried on by the Board with a view to making the best use of their assets
C143
In section 3(4) after the words “activities of the Board” insert the words “in Great Britain or elsewhere”.
C144
At the end of section 31(1) add the words “in Great Britain or elsewhere”.
C145
In section 36(2)(c) (inserted by section 46(1) of the Opencast Coal Act 1958) for the word “tons” substitute “tonnes”.
C146
In section 54(1) after the word “functions” insert the words “in Great Britain or elsewhere”.
C147
At the beginning of section 63(3) (references to activities not to include overseas activities) insert the words “Except as otherwise expressly provided”.
Coal Industry Act 1967 (c. 91)
C92
In section 4(1) of the Act of 1967 (payments by Secretary of State to Board in respect of early retirement benefits for those eligible under schemes under section 3 of that Act) after the words “section 3 above” insert the words “or section 7 of the Coal Industry Act 1977”.
C103
Sections 5 and 6 of the Act of 1967 (reimbursement of losses in postponing pit closures, and an additional loss of using coal in generating electricity or producing gas), which are spent enactments, shall cease to have effect.
4
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F20
5
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . F21
Schedule 5 Repeals
C11Part I Grants for Pit Closures
The text of ss. 1(1)(2), 11(8), 12(1)(2), 15(1)(2), Schs. 1, 3, 4 paras. 1(1)—(7), 2, 3, Sch. 5 Pts. I, II is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.
Chapter | Short title | Extent of repeal |
|---|---|---|
1965 c. 82. | Coal Industry Act 1965. | Section 3. |
1967 c. 91 | Coal Industry Act 1967 | Section 2. |
Section 4(3). | ||
Section 7(3). | ||
In the Schedule, paragraphs 3, 4 and 5. | ||
1971 c. 16. | Coal Industry Act 1971. | Section 1. |
Section 9(1). | ||
1973 c. 8. | Coal Industry Act 1973. | Section 3. |
In Schedule 1, paragraph 4. | ||
The repeals in this Part do not affect grants under section 1 of the Act of 1971 in respect of the Board’s financial year ending in March 1978, or in any earlier year.
C12Part II Other Repeals
The text of ss. 1(1)(2), 11(8), 12(1)(2), 15(1)(2), Schs. 1, 3, 4 paras. 1(1)—(7), 2, 3, Sch. 5 Pts. I, II is in the form in which it was originally enacted: it was not reproduced in Statutes in Force and does not reflect any amendments or repeals which may have been made prior to 1.2.1991.
Chapter | Short title | Extent of repeal |
|---|---|---|
12, 13 & 14 Geo. 6. c. 53. | Coal Industry Act 1949. | Section 2. |
1965 c. 82. | Coal Industry Act 1965. | In section 1(7) the words from the beginning to “March 1965 and”, and paragraphs (b) and (c). |
1966 c. 47. | National Coal Board (Additional Powers) Act 1966. | Section 1(3). |
1967 c. 91. | Coal Industry Act 1967. | Section 3. |
Sections 5 and 6. | ||
In the Schedule paragraphs 1 and 2. | ||
1971 c. 16. | Coal Industry Act 1971. | Section 2. |
1973 c. 8. | Coal Industry Act 1973. | In section 2 subsections (1) and (8). |
Section 4. | ||
Section 6. | ||
Section 7. | ||
Section 9. | ||
In Section 12, in subsection (1) the definition of “the financial years 1974-76”, and subsections (3), (4) and (5). | ||
1976 c.1. | National Coal Board (Finance) Act 1976. | Section 1. |
Section 3. |
For extent of this Act see s. 16