Mining: `King Coal' attacked in Commons motion

A strong personal attack was made on Richard Budge, chairman of RJB Mining, in two Commons motions last night. Anthony Bevins, Political Editor, reports on a dramatic threat to `King Coal'.

A fully-fledged judicial tribunal of inquiry should be set up to report on the Tory privatisation of the coal industry, and the transfer of pits to RJB Mining at the end of 1994, Labour MPs led by Robert Marshall-Andrews, QC, urged the Government last night.

It was proposed that the tribunal should be asked to investigate the background of RJB directors - "in particular Richard Budge, in the light of the report by Coopers and Lybrand, receivers for AF Budge, to the DTI in 1994, that Richard Budge was unfit to be concerned in the management of a company."

With Tony Blair being pressed by Cabinet colleagues to intervene on behalf of thousands of miners currently facing another Christmas under the threat of redundancy, the backbench attack on Mr Budge is expected to gather support and momentum.

One of two motions tabled last night said RJB Mining and/or Mr Budge had made a profit of pounds 200m out of the mines.

It then repeated a suggestion made in confidential government documents, that RJB Mining had been unable to reach agreement with the electricity generators on five-year supply contracts - unlike other coal producers.

The motion noted that RJB Mining was seeking a government subsidy of pounds 30m while, at the same time, it had found pounds 50m to make a bid for a 24 per cent stake in the Australian coal industry - a bid that had been vetoed by the Australian government.

Ministers were also urged in the motion "to reject further applications from RJB Mining or its associates or agents for licences or permissions for open-cast coal mining, and to take whatever steps may be necessary to safeguard the jobs of 9,000 miners presently working for RJB Mining and/or Richard Budge."

It concluded by condemning the last Tory government for putting those jobs directly at risk.

As for the tribunal of inquiry - a judicial investigation with powers to compel the delivery of evidence, under oath - one Marshall-Andrews motion says its terms of reference should include:

"Whether the sale of undertakings in the industry to Richard Budge and/or RJB Mining was in accordance with good business practice; whether RJB Mining has carried out its business in accordance with good business practice and law; whether proper undertakings were sought from, or given by, RJB Mining, by or to the last administration, in relation to closures and redundancies within the industry."

The terms of the motion are clearly fuelled by an intense Labour anger over RJB's actions over recent months - and the threats it had made that the jobs of at least 5,000 of its 9,000 remaining deep-pit miners are in jeopardy.

Of the country's 25 remaining principal collieries, 18 are currently owned by RJB Mining - and the threat from the company is real.

Another Commons motion, put down on Tuesday, condemns the imminent closure by RJB Mining of Asfordby mine in Leicestershire.