HC Deb 08 July 1957 vol 573 c19
26. Mr. Ridsdale

asked the Paymaster-General what proportion of the capital investment for the coal industry since 1947 has been financed out of the floating debt; and what proportion out of the funded debt.

Mr. Maudling

Advances by the Minister of Power to the National Coal Board during the years 1947 to 1956 represented about half of the capital investment in the industry during the period, but it is not possible to relate these advances to any particular source of borrowing by the Exchequer.

Mr. Ridsdale

Is the Paymaster-General satisfied with the present structure of raising capital and that the public are getting value for money in the very large sums now being invested in the nationalised industry?

Mr. Maudling

The National Coal Board aims at and obtains a good return on the investments which it makes. I do not think one could ever be satisfied that everything possible is being done. Clearly, a great deal more is capable of being done.

Mr. Nicholson

Is my right hon. Friend aware that this Question is a crucial one, because in so far as capital investment is financed out of the floating debt to that extent inflation goes roaring ahead, but that it does not go roaring ahead if it is financed out of the funded debt?

Mr. Maudling

It is quite impossible to draw a distinction. If my hon. Friend borrowed £5 from each of four people and put it all into a bank and then lent £10 out of that £20, it would be quite impossible to say from which source the money was coming, after it had been pooled.

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