LABOUR MP John Grogan is pressing for another Government subsidy to bale out the loss-making Selby pit complex.

An industry source said fears were growing that unless further state aid was forthcoming, the complex's scheduled closure date could be brought forward by two to three years.

The coalfield has already been given Government pay-outs of £43 million earlier this year but is still haemorrhaging money, with predicted losses this year of more than £20 million.

Mr Grogan jetted to Brussels yesterday to press Selby's case with EC coal division chiefs - who have to approve all subsidies - and plans to raise the issue in the Commons early in the new year.

Selby complex owners UK Coal, believed to be losing £1 million a week, have issued a profits warning and are said to be "reviewing operations."

Mr Grogan said: "It was thought the aid already given to Selby would secure the situation through next year, but the complex now needs another subsidy pretty quickly if its future is to be secure."

The current coal subsidy scheme runs out in June next year and UK Coal has already been given the maximum pay-out of £75 million.

The European parliament is to consider introducing a new subsidy scheme - but it will not come into effect until next December.

Mr Grogan: "I will be joining forces with other mining MPs to persuade Energy Minister Brian Wilson to roll forward the present subsidy scheme which expires in June.

"I'm confident the EC will approve a new scheme at the end of next year, but it's vital that the Selby coalfield is given more state aid in the transitional period between June and December.

"It would give the complex a badly-needed breathing space."

UK Coal chief executive Gordon McPhie has issued a stark warning to the Stock Exchange, stating that the long-term viability of its pits "continues to be examined."

He said: "Our deep mines lost £35 million in the first six months of this year. Losses of this magnitude are unsustainable."

Updated: 14:48 Tuesday, December 18, 2001