In order to discuss coal industry restructuring issue one has to understand current economy and European integration, being a crucial factor shaping contemporary economic landscape. The concept of the economy includes the purpose and content of economic activity, institutions and management mechanisms, resources and effects and how they deploy it. Processes of governing the economic activities of people are engaged in economic science. Initially, this science dealt with the knowledge of the laws governing the household - Greek "oikos" means house and "nomos" stands for law. Contemporary understanding of economics emerged around seventeenth century (Milewski, 1999). Natural economy, small-scale, retail - capitalist and temporarily - socialist, are the historical periods and changing management models. All mentioned systems include production, distribution, exchange and consumption of measures that meet the human needs. An important determinant is the scarcity of economic resources, which include human resources, natural resources and assets being a result of previous human activities. Scarcity of resources forces the need for rational management, that is to make the best choices when deciding on socio-economic goals and the means and ways to achieve these goals. In respect with the above energy economy, restructuring and revitalization theory is presented.
1.1.1. Restructuring
For many years production was being the greatest economic driving force and carbon economy was being a particularly important part of the process. Of course, the degree of development and the importance of the coal industry is different depending on the country concerned, but still it is an important point in energy policy of European Union. It is worth writing that the coal industry had been one of the fields that served to European integration. The European Coal and Steel Community (ECSC) was brought to live in the early fifties of the twentieth century by six countries: Belgium, France, Italy, Luxembourg, the Netherlands and West Germany, and it became the first organisation based on the principles of supranational cooperation. The impact of European integration and EU policy to a greater extent will be described later in this chapter. Nevertheless, how Jasiński pointed out in one of his books (1999), observation of highly developed countries suggests decreasing role of traditional energy sources. New economy is innovation driven, and based on constant adjustment to demand, new technologies, and even natural environment (Rybarkiewicz, 2006). To exist in the market, companies must change constantly.
The basic space in which companies and economy work is market, which is composed of interrelated entrepreneurs manufacturing products or services, that are provided to the buyers. One may say that entrepreneurs and their businesses are the lifeblood of economic development. It can also be stated that market participants and relationships that occur between them form a system. Briefly, the main mechanism of the this system, assuming it is a free market one, can be reduced to a disclosure of needs, by the operators making the demand, which (demand) can be cover by financial resources. Important here is the transition from market of producer and supplier into the market of consumer, as well as creation of the demand barriers, "which defines the relation between the size and structure of products and services offered in the market, and the demands of all types and groups of buyers, as defined by the structure of needs and the amount of buying funds" (Sztucki, 2001). A barrier subsequent from supply expanding demand is a permanent feature of the consumer market. As coal is being systematically substitute with cheaper and more environment friendly sources supply may in many cases overwhelm the demand. That is way countries recognize need to restructure coal industry.
To restructure something means to build new structure or introduce changes to structure. First the term appeared in sixties but for good, in literature, it went in to common use after a book by Roch and Roch Corporate Restructuring. A Guide to Creating the Premium Valued Company was published in 1990.
In literature (Pełka, 1990; Jakubik, 1993) two general types for changing a structure can be recognized, those are micro- and macro-restructuring. As usual the process in micro scale is devoted to all sorts of changes in company structure, such as management, employment, production, capital etc. While macro-restructuring deals with industrial policy and is shown by shift in national income production, within economy sectors (Gościński, 1993). This is followed by changes in material and quantitative production structure, as it is being adjusted to the demand. Qualitative transformations can be observed as well, because of technologically advanced products can be introduced to the system.
Every economic phenomenon is a subject to a certain factors and both, micro- and macro-restructuring is no exception. To meet the needs of the environment, in which business operates, is considered as the most important factor leading to economic development. Without the adjustment processes, business loose customers or markets, and thus its importance decrease. Malewicz (1992) observed that the restructuring process consist of the following inducing factors:
organizational and technical progress,
foreign trade and international cooperation, and
changes in domestic demand.
However, one need to remember that in many cases in dealing with restructuring at the macro level also the state policy and national low is of crucial importance.
From a theoretical point of view the restructuring may take place automatically, as the result of the actions of companies, or be the result of a deliberate shaping of market forces by the government. However according to Jakubik (1993) "market with the foundation is unable to cope with all the difficulties that arise in connection with a substantive restructuring of the micro and macro". This takes account of the complexity of the socio-economic reality. Numerous interactions within social and economic environment goes beyond individual preferences and goals, creating a market incapable to complete self regulation. Finance are an additional factor in the case of traditional industries, which are generally not able to undergo the process on their own, taking under consideration the large costs involved, as well as possible resistance to the redundancies.
Structural changes are generally complex processes and require careful planning (Jakubik, 1993; Jasiński, 1999). Regardless of the extent of process, main goal while restructure company, whole economy or industry, is to achieve stronger position, improved efficiency, to increase innovation, or competitiveness.
Restructuring in Polish and many post communism countries conditions, however, differs from that carried out in the western countries, because of the historical burden of economy (Jakubik, 1993; Jasiński, 1999; Walewski, 1999). For the sake of the political system the process of restructuring practically did not exist in Poland till nineties of twentieth century. While in Western Europe it was the natural consequence of technological progress and social development. Perhaps this is why restructuring in Poland is mainly associated with changes in the whole economy, and is also often equated, by citizens, with privatization. As polish economy transit from centrally planned to market systems, the main objective was to
Figure 1. The breakdown of the restructuring because of the range of changes
Source: own design based on Jasiński, 1999. Restrukturyzacja przemysłu białostockiego w okresie transformacji.
improve management effectiveness, and it is not possible without changing the physical composition of the backbone industry of national economy, such as coal mining.
Basic division of restructuring a company is pointed out in subject literature and shown below in Figure 1. While subjective restructuring is concentrating around manufacturing process, and competitiveness is achieved by improvements in technology or marketing, the objective restructuring is more related to company structure alone. That is transition within legal, organizational or economic structure and management.
Nevertheless, there can be different ways or dimensions of restructuring process. In literature a few divisions can be found (Sapiszajka, 1996; Teresiński, 1997; Jasiński, 1999). The most important, for purpose of this paper, is a financial or proprietary, which in some cases are included as a part of financial or organizational restructuring.
1.1.2. Energy Policy
The counter point for coal mining restructuring, involving the reduction of output, may be specific factors affecting the energy security of the country, after all, each country has got different natural environment. The natural environment is always a cornerstone of the energy security policy settings, because primary energy sources, such as coal, affects on the security of energy supply for the country.
The aim of energy policy in each country is to identify actions to protect the current and projected future energy needs, in such way as to become independent from external factors, in example the economic situation in neighbouring countries. The state of energy security can be provided by the diversification of suppliers of imported fuels and optimum extraction of domestic resources - oil, natural gas and coal. Furthermore, spreading of energy
springs can contribute to enhance energy policy. The "green" energy is renewable but very
costly, not only in material terms but in social aspect. the research shows that one "green" working place takes average four conventional working positions (XY, 200X). The numbers can vary in different countries. What is more Coal as a source of heath and electric energy is influencing the basic needs of a society. The physiological needs and safety need are at the very bottom of Maslow's Hierarchy of Needs as can be seen in Figure 2. Those two groups of needs are aggregated as basic needs, so those most important to every people. Safety stands, in the Pyramid, not only for security of body, but also security of employment, of resources, of morality, et cetera. In other words they stand for the basic need for social security not only in closest environment, like family, but also in a society (Hudson, 2009). Those group of needs is a guaranty against hunger and violence.
Government stands in an uncomfortable and difficult position, between securing the energy demand with respect to tight budget and to not break the social contract with citizens. Remarkable industry reforms are often the bargaining point during elections and are connected with very tense atmosphere. This is because the extent of state intervention in key areas of economic life is one of the persistent dilemmas of economic policy. Depending on the part of economic processes are proposed certain directions, forms and instruments of state intervention if necessary. There is a heated dispute, among scientists and policymakers, against this background.
Figure 2. Maslow's Hierarchy of Needs
Source: Wordpress found at: http://docsiva.wordpress.com/2009/01/03/web20-and-the-nature-of-man/
1.1.3. Revitalization and Rehabilitation
In an era of transformation taking place there is not new, but occurring in much more sharp, the problem of transition in use and spatial management of the industrial area, the industrial restructuring and preservation sites and buildings that are eligible to treat them in term of cultural heritage. New technologies and new awareness of threats, based on sustainable practices, enforce the elimination of harmful environmental impacts and thus reduce the role of the mining industry in the economy, leaving behind developed, and potentially affected by contamination, sites. In order for these areas to be reused, and brought back to socioeconomic function, they must first be classified, however, difficulties arise, when such attempt is made.
Brownfield is probably most common name/term used do describe post-industrial sites, nevertheless there seem to lack one common definition. Lee et al. (2006) recognized the problem of inconsistent interpretation of the term while writing the report for the CABERNET (Concerted Action on Brownfields and Economic Regeneration) Network. The survey shows even lack of any definition for brownfields in Scandinavia. This can be explained with specific conditions, such as high competitiveness, which reassures quick reuse of previously developed sites in major Scandinavian cities. A list of definitions for brownfields, retrieved by Lee et al. (2006), among European countries is contained in Appendix 1.
When analysing the appendix one can observe that brownfields can be understand very specifically or more broadly, as any previously developed and abandoned urban sites. As it happens in real life, between black and white can be found a number of shades of gray. In this case, different interpretation of the concept of brownfields, which may reflect different views of practitioners and theoreticians representing specific scientific fields.
For the purposes of this paper a definition by CABERNET seems most appropriate. In detail the Network has defined brownfields as "sites which:
have been affected by former uses of the site or surrounding land,
are derelict or underused,
are mainly in fully or partly developed urban areas,
require intervention to bring them back to beneficial use, and
may have real or perceived contamination problems" (see CABERNET, 2010).
In this work the author focuses her attention on areas developed by former coal mining past in context of wise stewardship of resources. What is more, author will concentrate mostly on hard coal industry than any other type of this mineral. The rehabilitation of manufactured sites is particularly important in times of crisis and increased global competitiveness. That is because of two reasons: one is the decreasing Greenfield areas, that can be put under investment, especially while taking under consideration constantly growing environmental awareness and the sustainable development policy, the other thing is that most of previously developed land lays in very favourable areas, with already compounded infrastructure. Still the scale of revitalization and rehabilitation of post-industrial landscape is difficult to estimate, as there are is no consensus what brownfields are, there is no statistical category for areas needing treatment. Because revitalization is a treatment. The word comes from Latin "re" and "vita", that is "bring back to life" and so it aims at reviving devastated urban areas. That is a comprehensive program based on complex and collaborative interdisciplinary interactions that unites technical activities with both actions designed to solve social problems of a particular area and the economic revival programs., and that is why brownfields mean not only something ugly or broken or abandoned but can be perceived as an economic resource, business activity, and opportunity that should be exploited, in parallel they can become
a historical landmarks and part of the country's national, cultural and architectural heritage, which must be conserved and maintained.
Reclamation and management of post-industrial, mainly post-mining areas are not
a new issue in Silesia region, such practices are carried out over a hundred years. However, the dynamic changes in the last decade of the twentieth century led to the emergence of brownfield sites on a scale far greater than the previous one. A new element of current restructuring process is the industry's exodus of old, worn out and unneeded land and facilities, including the areas of closed mines.
Subsequently to fully enhance and understand modern revitalization a comprehensive view on different fields of activity is needed. This means that core aspects, as economics, social life o ecology have to be backed up with law, finances and planning as assisting tools. Nevertheless one cannot underestimate the economic significance of revitalization programs, which not only improves the urban living conditions together with the quality of public space, but are influential to the competitiveness of towns (Wawrzyniak and Sobczyk, 2008). What is more the competitiveness is improved on much larger scale than the local one.
1.2. Coal Industry in Europe - short history
Coal is a sedimentary rock or in some cases, when considering harder forms can be classified as a metamorphic rock. It is composed mostly from carbon and some additional variable elements, mainly sulphur, hydrogen, oxygen and nitrogen. As a source of energy it is regarded as a fossil fuel. The energy properties of coal are closely related to its origins, since it developed from altered remains of ancient plants, which absorbed the energy from sun during the photosynthesis million years ago.
According to geology since coal formation began during the Carboniferous Period about 300 million years ago, when through some tectonic movements swamps together with its flora were buried, often to great depths. Normally plants lose their solar energy during the process of rotting, however in this specific case plant matter was accumulated at the bottom of mud or water, preventing it from external factors. In this specific conditions the plant's matter were exposed to high temperatures and pressures, which caused physical and chemical changes in vegetation. It took a thousands of years of such favourable conditions to form coal. Therefore, occurrence of mineral resources is closely linked to the geological past of the area, this is way these materials are classified as non-renewable, and hence their number is limited and they may be depleted. Especially that there are a different types of coal, depending on a level of coalification, so the degree of change undergone during the maturing process. Different uses of different types of coal are shown in the diagram below.
When comes to the history of coal extraction on continent, it can be sometimes longer then the history of many European countries. Over the years the mines were a source of wealth, they fulfilled the functions of city creation, and the industry concentrated around them. Tadeusz MikoÅ› suggests even in one of his books (2005) that mining and exchange of connected with it know-how, was one of initiators to European integration. Already in middle ages miners were travelling throughout Europe, so now many examples of similar exploiting systems, used in old times, can by observed in the inactive mines. Not only the workers were not stationary, but the owners as well. Mines were owned by different nations kings, merchants, or industrialists. This is why the changing fate of the mining industry in one country has always been associated with the operations in neighbour countries or regions. But let us start from the beginning.
Mining origins, not only for coal, date back in prehistoric times. Archaeologists argue that the fossil ore deposits have been exploited intensively since Neolithic times. Originally
it took form of drift mining and bell pits, but over the time also small shafts were created.
Figure 3. Characteristic of different types of coal according to energy content, use and world reserves
Source: World Coal Institute at http://www.worldcoal.org/
Additionally processes related to the use of mined ore resulted in the emergence of new technologies making the mining centres place to develop European technical thought.
The ones, who contributed most to the development of mining and metallurgy, was Celts, however the oldest traces of their activities are associated with the surface mining of gold and copper. In general development of mining was connected with extraction and use of precious metals - always highly wanted thanks to its look and physical properties.
After Romans overtook Europe and displaced Celts, the exploitation grow even bigger, but after the empire fall, in the Migration Period, many mining centres were abandoned and the industry has crashed. The situation changed only in the eighth century, thanks to both Franks' miners and western Slavs. And so, in the middle ages, coal was exploited mainly in Germany, Netherlands and England.
The real turning point in coal history, however, was the industrial revolution, when it started to transit into the energy-intensive industries, such as glassworks or firing bricks, due to its availability to power steam engines, the greatest invention of the era. Application of the steam engine in various industrial fields and in communications made possible to increase industrial production, as well as facilitated the economic and political penetration of other, even distant parts of the world. And so around seventeenth century coal from an occasional or specialized source of heat, became a fuel of much of the British nation and afterwards to Europe. In the mid-sixteenth century about two hundred thousand tons of coal was mined in England, and in the late seventeenth century, it was around three million tonnes per year (Cameron, 2004). International trade was busted especially by coal-generated steam engines adapted for the railways and ships during early eighteenth century. The growth of consumption in comparison to the pre-industrialized times was huge, and its rate went far beyond that of some major commodities.
Steam era brought also new inventions to mining itself, for example coal-cutting machines and steam shovels. Of course the extraction methods are dependant on geological conditions and costs of extraction. Major influence on mining can have so-called economic calculation, which is derived from a comparison of income incurred to the effort connected to that activity. Using the economic calculation, or with other words cost-effectiveness, is possible because both the inputs and outcomes are measurable and can be expressed in the same units of measurement. However, not all socio-economic decisions can be based on precise economic calculations, and the mining industry, as will come clear later on, become highly involved in socio-political decisions.
The coal industry was still growing in the early nineteenth century, because of the previous discoveries of how to use coal for a numerous purposes from making iron to using coal-fed steam to power machinery. The circle propel itself, while improvements in the transport, made coal fright and shipment cheaper, and thus encouraged its further use. Greater availability was also stimulating growing demand for this mineral for heating and cooking. One can say that the level of coal consumption became a new rate of life, showing the wealth of citizens. It is enough to brought some statistics from 1937 (Malara, 2010) according to which rate of coal consumption in some major countries was: 4106kg in Belgium, 3982kg in Great Britain, 2650kg in Germany, 1781kg in France, and only 736kg in Poland.
One have to mention, that growing consumption and thus production of coal led not only to technological changes, but made it political and social issue. Starting from late eighteenth century organized labour force and trade unions start to gain on their power.
Miners fought for higher wages and social privileges.
After the Second World War, coal become a dominant component in politics in most European countries. It was regarded as a strategic raw material, meeting the energy needs and having significant impact on economic development of producing it countries. That may be why the European Coal and Steel Community come into existence. The notion was firstly introduced by, then, French foreign minister Robert Schuman on 9 May 1950 and was based on Franco-German conflict over the Ruhr. The ECSC was finally established by the Treaty of Paris in 1951 signed not only by France and West Germany but four more countries. Of course there were some obvious divergences in state practices, but such divergences exist in most branches of international law and were natural. Possibly two most important objectives were the promotion of world peace and creating a single market across the Community.
Soon enough, that is in 1957, the ECSC was joined by European Atomic Energy Community (EURATOM) and European Economic Community (EEC). Only ten years after all institutions were merged with that of the EEC, but they preserved their own independent identity. However in 2002 when the Treaty of Paris expired, and there were no desire from the participating members to renew the treaty, all activities and resources of the European Coal and Steel Community were absorbed by the European Community, established by Maastricht Treaty in 1992. The ECS Community managed to create a common market but was unable to prevent coal and steel industries from declining.
The current shape of hard coal industry and its role in economy has been largely influenced by those and other political changes in the international arena in the second half of the twentieth century. Profound economic transformations, rooted in the economic system conversion, brought significant changes in the competition field. There has been the internationalization of markets worldwide. Technological advances in transport and communications allowing to reduce costs, moved competitiveness at the global level. At the same time, turn in economic systems and changes in competition echoed by changes in socio-economic, cultural and social fields.
Changes in such a wide range have led to two social movements of Europe of the seventies, namely consumerism and ecologism (Lambin, 2001). While consumerism is all about improving standards and higher expectations, the movement of environmental awareness stems from the limitations of natural resources, and as coal definitely is an natural and limited resource ecologism has had very important and long-term influence on coal industry, particularly that coal mining raises also a number of environmental challenges, including soil erosion, dust, noise and water pollution, and impacts on local biodiversity. The nature of the impact is dependent on the specific generation technology. Nowadays, in modern coal mining operations, steps are taken to minimise these negative impacts. The sustainable development policy agenda forced new ways of thinking. A sustainable energy future should be one where society's energy needs are met by wise use of all resources available, both over the short and long term, but yet, it should provide such production and use of these energy sources to minimize impact on environment and enhance economic and social benefits at the same time.
Although the sustainable development notion was born in seventies of past century, when in 1972 in Stockholm, at the United Nations Conference on the Human Environment, it
Figure 4. Coal reserves showing regional shares (at the end of 2003)
Source: World Coal Institute at http://www.worldcoal.org
received first truly international recognition, the real progress was started twenty years after. Nowadays, the International Summit in Rio de Janeiro held in 1992, is perceived as the beginning of sustainable development era.
Subsequent to the pressure connected to natural environment, some European countries, like United Kingdom, Germany and France start to revise a long-term objectives of its policy on fuel and energy. Worsening geologic conditions of mining and the periodic decline in world prices for oil and natural gas constituted additional stimulus. As a result, in most EU countries producing coal become necessary to take restructuring measures. It should be stressed, however, that the process was closely linked with the strategic, long-term energy policy, and took under account not only economic but also social consequences.
Social zone from the very beginning has focused attention of single governments and the European Union Community. Subsidies for coal mining were widespread in Europe until the mid-1990s when the coal industry faced increasing competitiveness from imports. It was then agreed that maintenance of artificially higher than the required level of output and employment by direct financing is not effective in a long term. What is more it could harness the pace of economic development. This is because declining industries by consuming a large portion of the budget inhibit the growth of "future" industries. Furthermore, a direct subsidies give a positive effect only for a short period of time, which in the case of a further decline in demand for coal led to the need for much more radical, and thus more painful adjustments.
Summarizing, in Western Europe, developed a rather consistent policy towards coal, assuming a progressive reduction of the extraction, where ineffective. The situation formed slightly different in the so called Eastern Bloc.
After communism system fall in Central and East Europe, whole region stand in
front of very difficult transformation period. Free market management leads to a significant changes in fuel and energy policy, but for most they are associated with changes of law and
Figure 5. The role of coal for power generation in Europe (in 2007)
Source: European Association for Coal and Lignite at http://www.euracoal.org
manifest themselves in the new statutory regulations governing also the restructuring process,
but yet, hard coal for many years served as the basis of energy security for many countries, not only in Europe and can or for some still is a safe base for energy policy, particularly because the world's resources are located almost entirely in the northern hemisphere and may even be enough for many years. The distribution of coal reserves and the still big role of coal in European energy production are shown in Figures 4 and 5.
The sharp increase in oil and gas prices in 2005-2006 and the temporary cutback in natural gas supplies from Russia at the end of 2005 have boosted concerns about the security, diversity, reliability and affordability of energy supplies in the EU. In the Community began a difficult period of detention of integration processes. Member States saw the need for some common findings in this field of energy trying to create a common policy. After many years in the shadows, coal has recently come back into consideration. The advance in more environmentally friendly technologies for coal utilisation - Clean Coal Technologies - have further increased the interest in coal.
1.3. Legal Aspects
To discuss the legal aspects of revitalization or industry restructuring in Poland one has to know a political background. How have already been mentioned in this chapter, structural transformation in Poland and other post-communist countries, differs from that in West European countries. It is natural that investors can influence only at a small scale on legal conditioning related to management of companies with state ownership. Relevant regulations are formed by government actions. Very important factor, in case of Poland, is that after the Second World War the government was the sole owner and not only the shareholder. That is why Polish legislation refers to restructuring in ownership transformation terms, which is reflected in the subsection below. Also the influence of European Union and its regional policy is investigated, proceeded by research on the status of revitalization in polish legislation.
1.3.1. Industry Conversion Programs in Poland
The most important legal acts in respect to economic restructuring are: Act on State Enterprises (Ustawa z dnia 25 września 1981 r. o przedsiębiorstwach państwowych), Act on Commercialization and Privatization (Ustawa z dnia 30 sierpnia 1996 r. o komercjalizacji
i prywatyzacji przedsiębiorstw państwowych) and Act on Privatization of State Enterprises (Ustawa z dnia 13 lipca 1990 r. o prywatyzacji przedsiębiorstw państwowych). Coal mining industry, as one of the key national industries, has constitute an important and neuralgic element of economic transition starting from the second half of eighties of the twentieth century.
The first systematic attempt to adapt to the requirements of the free market was made in the beginning of nineties of twentieth century (SzlÄ…zak, 2004, Fornalczyk et al., 2008). Actions between 1989 and 1993 was concentrated on organizational changes within industry structure. The major project carried out back then was the liquidation of supramine management structures. Since December 1989 to February 1990, five state-owned Coal Exploiting Communities were transformed into State Enterprises.
In February 1993 the Economic Committee of the Council of Ministers considered and approved "The Coal Mining Industry Conversion" Program, presented by the Minister of Industry and Trade. However, there were no real money and determination to realize all the objectives. Nevertheless, the changes introduced, allowed the establishment and strengthening
of a new organizational structure as well as stabilizing market price for coal.
Since the state of the coal industry constantly deteriorated, the work has been began on a new plan for reorganization. And so, three years later the Council approved new
program - " Mining of coal - and the policy of the state sector for the years 1996-2000. Adjustment program for the coal-mining conditions of market economy and international competitiveness". Also in this case the expected result was not achieved, as in previous scenario mainly due to lack of funding sources and inefficient management of change.
The correct recognition seems Kosiedowski's, who argue that many local and regional development programs are being only a strategic assumptions without basis in a realistic action plan. Centrally planed economy in Poland, even if less strict than in countries which were under the direct influence of the Soviet Union, left its mark not only in the material sphere, but had also affected the perception of the role of government in the economy. Kosiedowski (see Bagdziński, 1998) notes that many communities, declaring full support for idea of free competition, are still expecting, or even are demanding, many governmental benefits gained during the so called socialist realism period.
The new governing coalition recognized the problem and started to work on developing a new program for further reforms of the mining industry. Ministry of Economic Affairs has presented at the beginning of 1998 "Reform of Coal Mining in Poland for the years 1998-2002". The program correlated with "Solidarity" concept of "Reform of Coal Mining". The government plan assumed, inter alia, a redundancy of about one hundred thousand people connected with social protection for laid-off workers, debt reduction and liquidation of unprofitable mines. This time, however, government took more consideration about financial aspect of industry conversion. An Act on Adjustment to Market Economy and Special Powers and Responsibilities of Municipalities (Ustawa z dnia 26 listopada 1998r.
o dostosowaniu górnictwa wÄ™gla kamiennego do funkcjonowania w warunkach gospodarki rynkowej oraz szczególnych uprawnieniach i zadaniach gmin) was created and adopted.
Year 2003 equals new program and new Legal Act on Coal Industry Conversion for period 2003-2006. The Act sets out rules for financial restructuring of mining companies, principles of the employment creation, rules for the liquidation or organizational changes for coal mines, special rights of mining communities and source of funding all mentioned.
Despite execution of existing projects, only a few mining companies could boast of stable positive financial performance and relatively good financial liquidity. Furthermore some new external factors had occurred, such as changes in energy fuel prises around the world, and the most important - polish preparations for accessing the European Union Community. Therefore, a new restructuring program had to be created.
The legal basis for actions in recent years was a document entitled "Restructuring the Coal Mining inn 2004-2006" and "A Strategy for years 2007-2010". Both programs had to be supported with the characteristic of aids granted by government to the industry, send obligatory to the European Commission. The documents are necessary to give any public support for the mining industry, consistent with the Council Regulation EC 1407-1402 and the EU Council Regulation No 1407/2002 of 23 July 2002 and Commission Decision of 17 October 2002, relating to state aid.
The Restructuring Program assumed that in years 2004-2006 reduction of exploitation capacity together with improving the efficiency and financial liquidity of the sector (Chroszcz, 2005). Furthermore, based on the business plans of mining companies, plans have been developed for access to coal reserves and the closure of production units. The strategy for last three years concentrate around the state aid for restructuring. Lately the conversion plans ware supported with the Law on Coal Mining Operation in the Years 2008-2015. The Act lays down rules for the operation of coal mining industry including the structural changes, measures to promote clean coal technology and monitoring. The Act deals also with the source of funding for the tasks defined.
1.3.3. Polish Legislation on Revitalization
Both legal and institutional spheres of revitalization in Poland are today one of the most neglected areas of knowledge about the revitalization processes. Subsequently "revitalization" is not a term defined by national law and is also not a statistical category. Land and the buildings carried under the Law on Geodesy and Cartography, does not distinguish land usable for regeneration. Therefore, it was difficult to synthesize revitalization policy in the country.
Among the regulations in Poland, revitalization is mentioned only once, in the Law on Public-private Partnership (Ustawa z dnia 28 lipca 2005r. o partnerstwie publiczno-prawnym). It is listed as one of the actions that can be realized in the forms constituted by this Law. Apart from that there are some legislation related indirectly to the revitalization issues. They can be very general like in the Law on Spatial Planning and Development or very specific. (szkody górnicze)
The very basic document concerning revitalization around Poland is the Local Development Plan. It is a document of the local government unit in form of a resolution. The document deals in detail with the activities to be undertaken by the local government within the next few years. These activities aim to implement the mission of the municipality, which most usually is about rising the living standards of the citizens through the development of all areas of public life. Establishment of such a plan is not a mandatory task. Only a plan in regard to the spatial issues is mandatory. This results from the Law on Local Government (Ustawa o samorzÄ…dzie gminnym) and the Law on Spatial Planning and Development (Ustawa o planowaniu i zagospodarowaniu przestrzennym). The act on local planning sets out responsibilities of municipalities in regard to establishing Spatial Development Plan together with the previous analysis including occurrence of areas "in need of transformation, rehabilitation or restoration" and areas with "mining sites", "cultural heritage, historical sites and modern culture goods" (Article 10). The inventory of mining areas is additionally mentioned under the provision of the separate acts, such as the Law on Geology and Mining (Prawo geologiczne i górnicze), Law on Environmental Protection (Ustawa o ochronie przyrody) and Law on Infrastructure of Spatial Information (Ustawa o infrastrukturze informacji przestrzennej).
The Local Development Plans are particularly relevant as the basis to rise funds from the EU budget. In the case of municipalities with declining industry or other structural issue, often the supporting document is created called Local Revitalization Program.
Programs are financed from the local budget of the local government and the special subsidies. The legal bases are established in particular by Law on Public Finance (Ustawa o finansach publicznych) and detail laws on financing or supporting specific economic activities, such as coal industry restructuring or housing.
Revitalization is a multi-aspect process. That is why it requires appropriate management of rights and the available resources, in a way that is rational, efficient and effective.
1.3.2. European Regional Policy and its Significance
Since 2004 Poland as a member country of the European Union is influenced by its structural policy. The role of regional policy is increasing. Professor Bagdziński (1998) believes that the restructuring at regional and local levels is a prerequisite in determining the success of restructuring at the country level.
While characterizing the regional policy of the European Union in the nineties of twentieth century, it is clear that its main purpose was to reduce economic and social disparities between the poorest and richest regions of the Union. In the European Union's economic policy, it is stressed that the excessive variations in the economic development of the regions are unfavourable for the integration processes. Confirmation of this can be seen in supplementing the Treaty of Rome on the principles of economic and social cohesion as an essential element of the Single Market.
Furthermore, Maastricht Treaty, ratified in 1993, established the Cohesion Fund for Greece, Ireland, Portugal and Spain. Those four member countries' Gross Domestic Product per capita was less than ninety percent of the average for the whole community back then. To facilitate the integration of these regions, the Community has identified five development goals, where economic and social priorities were included. Objective 2 of structural policy stands for revitalizing areas experiencing structural difficulties, mainly areas suffering from industrial decline and its neighbourhood.
One has to remember that Union seeks a way to balance economic and political integration with preservation of regions individuality and variety. An important thing is the perception of region within European Union. A region is not limited to national boundaries but it is a spatial module that can be crated by supranational common space.
However, it need to be stressed that Poland was a beneficiary to European Union's support also before the Accession. In mid 1989, during the meeting of most industrialized nations agreed to launch a special aid fund managed by the European Commission, which was intended to help Poland and Hungary in the conduct of political and economic change. The program has received a name: "Poland and Hungary: Assistance for Restructuring Their Economies" - Poland and Hungary - Aid for restructuring the economy".
Under the PHARE in 1998 The European Commission granted Poland for 20 million Euros to support the mining sector restructuring process. Administrating of the means was the responsibility of the Polish Agency for Enterprise Development (formerly Polish Foundation for SME) under the supervision of the Ministry of Economy.
