PRESIDENT of the Board of Trade Michael Heseltine last night warned

MPs that present levels of Government subsidy to the coal industry are

likely to fall.

He was answering questions from the Environment Select Committee after

last month's demands by another Commons body for cash help to prevent

pit closures.

Mr Heseltine insisted: ''The subsidy for coal is, in my view,

extremely unlikely to be as large as the existing subsidy.''

A Trade and Industry Department spokeswoman said British Coal had

received a total subsidy of #17 billion since 1980.

Last month, the Trade and Industry Select Committee called for a #500m

rescue package to save some of the pits threatened with closure.

Mr Heseltine last night stonewalled most of the Environment Select

Committee's questions over the environmental effects of energy policy.

He repeatedly referred MPs to his White Paper on the industry's future

to be published later this month.

Chairman Robert Jones (Hertfordshire West -- Con.) said he might have

to ask him to come back after publication.

Mr Heseltine, pressed about the effect on industry of environmental

measures, warned: ''The moment you move from the October decisions there

will be a cost.''

He also spoke of the ''silence'' of the green lobby on his original

plans to close 31 pits, even though this would have been ''a significant

step forward'' for the environment.

A RIVER from which drinking water is drawn could be polluted if

threatened colliery closures are carried out and underground pumping

operations are halted, a report claimed last night. The National Rivers

Authority called in consultants to work out the possible outcome if

Durham's coastal pits at Seaham and Easington were closed and their

workings became flooded due to pumping being stopped.