DID THE COAL BOARD FIDDLE THE BOOKS? by a special correspondent
The National Coal Board's annual report was issued on August 27th, and Lord ii(miners' best friend) Robens commented upon it in a special statement. The annual report states that, after absorbing heavy extra costs and paying’ interest charges, the industry made a profit of £100,000. The report covers a fifteen month period because it was obliged to rearrange its financial year under the Coal Industry Act, 1962, Because of this it is difficult to make comparisons with last year's figures. Operating profit amounted to £72.5me, of which collieries made an operating profit of £66.7m. or 5s 7d per tone : Where did the difference between the operating profit and the declared surplus go? one might ask. The report shows that £52.9m. was paid to the Government to meet interest charges, another £7m. went to the central obsolescence fund, and (a strange fish this!) £12.5m. was set aside to meet the likely difference hetween the historic and likely replacement cost of fixed assetse
Lest anyone think that I am being a bit short-sighted on this question, I would point out that £93,200,000 had already been allowed for depreciation: before the operating profit was calculated. Yet now we find that a further £12.5m. is lopped off the recorded surplus after calculating the operating profit. The Derbyshire Miners' pamphlet, "A Plan for Miners", has already gone into this method of 'book-keeping'; but surely no one need be surprised if it is concluded that thee figures were arrived at to 'prove' two thi 8 (1) that under the wise management of Robens the industry could break fig oS about) ; and (2) that there was no money in the kitty for wage increases. How else do we explain a surplus of a mere £100,000 on business operations by one of the biggest businesses in the world?
Having commented upon what I believe to be some sharp practice, I would be remiss if I didn't have a go at the other aspects revealed. During the year the number of miners declined by 31,000 to a total of 505,000; output per manshift went up by no less than 8.6% to easly A little calculation will show that each miner earned over £100 (o# Ser week) to pay interest and compensation charges. At the same time the price of coal for industry, ise@y, big business has not gone up. As the report says: "The big rise in productivity, following one of 8% in 1962, enabled the Board to absorb sharp increases in costs without raising prices..There has now been no change in the general level of the Board's prices for industrial coal, except for Scottish and Lancashire coal, for over 3$ years. In the same period the index of retail prices has risen by 12%,"