TWO hundred thousand ex-miners or their families will lose out on potential six figure compensation pay-outs if the Government goes ahead with controversial new proposals, The Northern Echo can reveal.

Currently more than half a million claims for compensation for lung disease have been made by retired miners or their families.

With only 152,000 pay-outs so far, Government officials fear that the lengthy medical assessment process could drag on until 2010.

But the Department of Trade and Industry (DTI) now wants to bring in draconian proposals to speed up claim processing.

A highly placed source has told The Northern Echo that the DTI is taking a tough new line on compensation claims for respiratory disease.

The Government wants to speed up the assessment system by eliminating all remaining claims by the families of deceased miners where medical records are not available.

DTI officials also want to prevent miners who pass a basic lung-function measurement test from progressing to a full medical examination by a chest specialist.

It is understood that under the proposals, rejected claimants who can prove they or their relative have worked underground would be offered a token sum of about £500.

This is in stark contrast to the average sum of £10,000 paid to successful respiratory disease claimants so far.

It is also understood that solicitors representing unsuccessful claimants would still have most of their fees paid.

Details of the proposals were leaked by an unidentified insider who commented: "I think it is fundamentally unjust and that is why I am calling you."

While experts say the basic lung-function test is pretty accurate, there is evidence that a significant minority - as many as 20 per cent of those tested - may pass the test but still have serious underlying lung damage.

The proposals are due to be aired in the High Court early next week before Mr Justice Turner, the judge who ruled in 1997 that all miners who worked underground between 1954 and 1984 were eligible for compensation for coal dust-related lung disease because their employer did not provide them with face masks.

A separate claim is being pursued by 170,000 ex-miners for damage caused by operating heavy equipment, a condition known as vibration white finger. A total of 93,000 of these claims have now been settled.

The leaked plans were immediately attacked by the National Union of Mineworkers.

David Guy, president of the NUM's North-East area and the official responsible for overseeing claims relating to the Durham coalfield, said: "If it is the case that 200,000 cases are going to be taken out of the process without being given access to a medical examination they will have to prepare themselves for 200,000 cases in the courts."

Mr Guy added: "These people have the right to have a full examination. We will resist anyone being forced out of the system."

With a General Election expected next year, Mr Guy warned that the political fall-out from such proposals would cause "a great deal of flak".

Roger Maddocks, a solicitor with Irwin Mitchell and a member of the national steering group of lawyers handling miners' claims, expressed concern at the proposals.

"If the DTI have changed their position and we have not been told it would cause considerable concern in the coalfields," said Mr Maddocks, who represents many North-East claimants.

"As far as we are concerned we have been having a discussion with a view to seeing what radical alternatives can be developed, but always retaining the option of seeking a full medical examination."

A DTI spokesman said: "We met with the claimants group last week and with the judge.

"He said that following that meeting he has asked us to put proposals to him which will radically simplify the process.

"At the current rate it could take up to seven years to clear all the claims. We want to be able to reduce that and increase the number of offers being made."

The spokesman added: "I would stress that we are committed to paying as many people as we can.

"We have set aside £7bn to meet these claims and have already paid out £2.2bn. The money is not an issue."