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Thursday, 20 June, 2002, 14:53 GMT 15:53 UK

Coalfield closure 'will cost £420m'

Early closure of the UK's largest coalfield area in North Yorkshire will cost the region more than £400m, a study has revealed.

Up to 5,000 jobs would also be under threat in the Selby Coalfield if its owners UK Coal shut the pits down.

Selby MP John Grogan was publishing "The Selby Coalfield Impact Study" in the House of Commons on Thursday.

The report states the closure - which could take place in autumn 2003 - would have a "significant psychological and economic impact on the Yorkshire and Humber region."


" We are hoping the Government will...discuss with UK Coal a phased closure programme "

John Grogan MP

The pits at Selby opened less than 20 years ago as a "high technology, modern mining complex" but UK Coal states they will not be economically viable beyond 2005.

The report states: "As many as 5,000 jobs in total could be at risk in the region in the longer term to 2011."

'Redevelopment package'

UK Coal has not formally announced a closure date but the report's authors suggest the coalfield could close as early as autumn 2003.

It states: "[This] leaves too short a time-scale to formulate any meaningful economic redevelopment package, and to implement the necessary re-training programme."

Mr Grogan was due to tell the House of Commons on Thursday that the region requires time for workers to re-train and regeneration packages to be developed.

"If that requires additional Coal Aid I think that would be a price worth paying," he said.

"In Selby we are prepared to work hard to secure a new future beyond coal but...we are hoping the Government will discuss with UK Coal a phased closure programme."

A UK Coal spokesman said the company has lost £90m over the last three years and the closure could not be avoided.

"This is the reason why we have also been lobbying the government for some form of closure aid...to minimise the losses and the impact on the region," he said.

A spokesman for the Department of Trade and Industry said an aid package for the area was being considered.


Related to this story:
Debate into troubled mine's future (23 Jan 02 | England) Inquiry into troubled mine's future (18 Dec 01 | England) Uncertain future for oldest working mine (06 Dec 01 | England) UK coal sector poised for further cuts (26 Nov 01 | Business)


Internet links: John Grogan MP | UK Coal | Department of Trade and Industry | Yorkshire Forward |
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