Topical question asked in the House of Commons, by Tom Greatrex (Labour). It was answered on Thursday, 10 April 2014 on behalf of the Department for Business, Innovation and Skills.

Topical Questions

Question: Last week, the Prime Minister said on the BBC that he would do everything he could to keep the pits at Kellingley and Thoresby open. This morning, the Minister of State issued a written statement confirming that the Government were facilitating a “managed closure”. Given that people will begin to lose their jobs on 23 May, there is now a very short period in which it is realistically possible to secure alternative investment to keep the pits open. Towards the end of last week, a private operator suggested that it might be interested. Has the Minister of State, or his officials, had any discussions with it about whether it is possible to find a way of securing a commercial future for those pits and those communities?

Answer: In my ministerial statement, copies of which are available in the Vote Office and the Library, I confirmed that we were prepared in principle to contribute a £10 million loan—alongside contributions from other private sector investors—to support a managed closure of the two collieries, which would avoid the significant losses and liabilities that would have materialised in the event of the immediate and uncontrolled insolvency of UK Coal. That does not exclude any further private sector interest, and I have been meeting others who have expressed an interest, as has UK Coal.

Secondary information