THE NATIONAL Union of Mineworkers hired top Oxford University economics don Andrew Glyn to analyse official British Coal statistics and work out exactly what the closure of 31 pits will mean for Britain. The resulting report underines just how short-sighted Tory chancellor Norman Lamont really is. scrapheap - a figure which excludes 7,600 more working for British Coal in capacibes. 31,500 jobs will go from BC suppliers, and the resultant loss of spending power would put at least 15,700 more ut of work. All told, the move will mean Money to bum - Heseltine In 1982-83, Glyn argues, each miner produced an average 2.4 tonnes per shift. in 1991-92 this was 5.31 donnes, a productivity increase of 121 per cent. By comparison, productivity in the manufacturing sector has grown by 50 per cent over this period and in the banking, finance and business ser. vices sector by just 14 per cent.
Wage costs per unit of output have actually fallen in money r terms over the same period, from £19 ust £16.06 per sonne. Yet demand has allen from 95.1 million tonnes to 65.1 milion, mosty because of increased imports of foreign coal, which rose from 3.4 milion sonnes to 20 milion sonnes.
Imports of oil and gas to replace UK coal output will worsen the UK balance of payments deficit by between E500 £1000 milion a year, adding to inflation and cutting pay packets. They may ere no a impact on exchan ra puttic sector berowing will rocket by at least £1300 million in the first year British Coal workers, unemployment benefit payments and lost tax income. Even then, Lamont will have to find 2600 milion every your attor that. He'l he public sector to rake some of the cash back, meaning more lost jobs.
Not even the dosures will save much money. Half of the pits affected are actualy profitable. Taken together, the 31 mines make a collective loss of just E8.5 milion, a figure dwarled by the cost of closure.
Glyn devastatingly concludes: This latest assault on the coal industry may well be unique in the history of economic policy in that the economy's performance will be worsened simul taneously in every relevant respect.'