|
|
|
|
|
 |
 |
|||
The Miners' Federation of Great Britain
Terms of Settlement in the Districts
Northumberland
Schedule
Principles To Be Followed For The Purpose Or Periodical Ascertainments.
1. The industry (of which the proceeds and cost of production other than wages, determine the wages payable) is the coal mining industry of the County of Northumberland; it does not include other activities such as :—
| Coke ovens and by-product plant. |
| Brickworks. |
| Smokeless fuel plant. |
| Manufacture of patent fuel. |
| Selling agencies, merchanting depots. |
| Wagons, ships, barges. |
| Private railways (as distinct from colliery sidings). |
| Farms and cottages. |
| Washeries and electric power plant, except those situated at and used principally by the colliery. |
It does comprise all the operations of coal mines, including the incidental raising of other products.
When, however. coal itself is raised incidentally to other minerals, e.g., fireclay, ironstone, for the purpose of working the mine or treating the minerals raised therefrom, the whole of the figures relating to the mine are to be excluded from the ascertainment, notwithstanding that it may govern the wages of the workers employed there.
2. All expenses and receipts of any excluded activity are to be eliminated from the ascertainments with the exception of transfers which are to be brought into account at values fixed by methods determined according to Clause 7 of the Agreement. For the purpose of verifying values attached to transfers and all other figures affecting both the collieries and excluded activities, the books and accounts of excluded activities shall be produced for the inspection of the independent accountants.
3. The returns from collieries temporarily closed are to be included in the periodical ascertainments, whatever be the cause of the temporary closing, whether accident (such as fire, explosion, or flooding), industrial dispute or question of policy; provided that a colliery temporarily closed shall cease to be included in the ascertainment as respects any time during which it remains closed after the expiry of three months from the date of closing, except insofar as the returns relate to the provision of services such as pumping, etc., for other collieries.
4. Stocks of coal and ancillary minerals: The difference between the value of the stock at the beginning of the period and that at the end is to be taken into account in computing the proceeds of the industry, the basis of valuation being cost or market value, if lower than cost.
5. The values placed upon house coal allowances referred to in Clause 6 (d) of the Agreement are to be added to the proceeds, which are to include all sales and transfers not only of coal but of other products of the mine, e.g., any sales of water, and also any sum received as compensation for leaving minerals unworked, except such proportion, applicable to the ownership of freehold minerals, as would, in the case of leasehold minerals, have been paid to the proprietor.
Selling and delivery expenses payable by the collieries are to be deducted from the proceeds, such expenses to include :—
| (a) |
Railway charges.
| |
| (b) |
Private railway rates.
| |
| (c) |
Freight and shipping charges.
| |
| (d) |
Cartage.
| |
| (e) |
Sales agency commission.
| |
| (f) |
Wagon hire (colliery wagons only) actually charged to customers.
|
6. Costs of production other than wages shall include the following items calculated in accordance with income tax practice.
| (a) |
Timber and stores: Cost of what is consumed, stocks being adjusted on the basis of cost or market value if lower than cost.
| |
| (b) |
Depreciation, together with obsolescence or, alternatively, renewals.
| |
| (c) |
Freehold Coal Royalties: A charge equivalent to royalty calculated upon the Mineral Rights Duty basis.
| |
| (d) |
Surface Damage and Restoration of Surface at end of Lease: Where the colliery does not own the surface, only actual payments for surface damage to be charged. Damages to surface belonging to the owners of the colliery to be included to the extent to which the damage is made good by actual expenditure, or, where it is not made good, then to the extent of the loss suffered by the owners.
| |
| (e) |
Workmens Compensation Payments and Insurance: Actual expenditure as admissible for income tax subject to adjustment for deficit or surplus of Mutual Insurance Association as ascertained for income tax purposes : the adjustment, expressed as percentage of premiums, to be certified by the Association's auditors; the independent accountants for the district to have discretionary right of access to books of companies owned or controlled by a colliery or collieries. If not so owned or controlled, but colliery interests preponderate, colliery owners to take any steps in their power to enable facilities for such access to be granted, if requested.
| |
| (f) |
National Health and Unemployment Insurance; Widows', Orphans' and Old Age Contributory Pensions Act, 1925: Owners' proportion of contributions.
| |
| (g) |
Remuneration of Owner Managers: Amount to represent the fair remuneration which would be payable in the district for the work done or services rendered, as measured by the facts and circumstances in comparable cases where officials have no interest in the ownership.
| |
| (h) |
Clerical and Administrative Salaries: Being the emoluments of men ordinarily employed in and in connection with the management of the colliery or in and about its offices, but not including men who are fulfilling manual or mechanical or such other duties as relate to the getting, handling, hauling, and despatching of the coal and the direct oversight needed for the due fulfilment of the duties of such men. The expression includes remuneration of surveyors, under-managers and draughtsmen, also weigh clerks and weighers, despatch clerks, timekeepers and storekeepers if wholly or mainly employed in clerical work.
| |
|
It does not include salaries of overmen, deputies and enginewrights.
| ||
| (i) |
Fire Brigades, Rescue and Aid Services, etc.: District expenditure to be allowed as a deduction from the district aggregation, but no contributions to be allowed as deductions in returns of individual collieries.
| |
| (j) |
Welfare Levy.
| |
| (k) |
All revenue expenses not enumerated above incidental to the working of the collieries with the exception of selling and delivery expenses dealt with in paragraph 5 hereof.
|
7. The following items are inadmissible as working costs :—
| (a) |
Interest on capital and loans (whether debentures, other fixed loans, or bank overdraft).
| |
| (b) |
Capital expenditure and the amortisation thereof (except so far as included in income tax allowances).
| |
| (c) |
Charitable subscriptions and donations.
| |
| (d) |
Contributions to trade associations (except as provided under (6) (i) above).
| |
| (e) |
Pensions.
| |
| (f) |
Contributions to mutual societies for benefit of particular classes of employees.
| |
| (g) |
Income tax.
| |
| (h) |
Consequential loss insurance premiums (recoveries also to be excluded from proceeds).
|
8. Forms of return (T.S. 1 and T.S. 2) as drawn up by the independent accountants to the district are to be issued to the collieries to be completed, in duplicate, one copy of each form being sent to the accountants representing the owners in the district and one copy to the accountants representing the workmen. Tonnage statistics are to be included in the returns. All information regarding individual collieries disclosed to the independent accountants is to be treated as confidential
Whenever the independent accountants are unable to obtain adequate information from the books, accounts, and vouchers for the proper verification of the T.S. Returns, they may call for the production of any documents such as the balance sheet, the auditors' report thereon and income tax computations.
Collieries shall provide within a reasonable time after the end of each financial period a reconciliation statement of the results shown by the audited accounts and the T.S. Returns rendered in respect of such period together with a detailed schedule of capital expenditure incurred during the same period.
9. The independent accountants may include in the district aggregation a provisional sum and bring into a subsequent aggregation the amount, if any, by which the sum ultimately determined differs from that provisionally included. Any adjustment shall be given effect to by addition or deduction in the ascertainment subsequent to the amount of such adjustment being agreed and shall be brought into account to the extent to which the adjustment shall relate to any period of ascertainment after the 1st January, 1927.
10. The independent accountants may obtain the advice of an expert on technical questions arising in the course of a test audit, the expert to be chosen by agreement between them, or, failing such agreement, by the Independent Chairman of the District Board.
11. Small collieries employing ten men or less are to be excluded from the district aggregation and consequently no form of return is required to be completed in such cases, the Independent Chairman to decide in case any question arises as to the inclusion or exclusion of such mines in the district concerned.
On behalf of the Northumberland Coal Owners' Association,
Reginald Guthrie, Secretary.
On behalf of the Northumberland Mine Workers' Association,
W. Straker, Secretary.
Newcastle-on-Tyne.
15th January, 1927.
Contains public sector information licensed under the 
