HC Deb 07 May 1957 vol 569 cc797-8
42. Mr. Grimond

asked the Chancellor of the Exchequer what is his intention as to reducing the overdraft of the nationalised industries and as to their capital financing.

Mr. P. Thorneycroft

The total of the overdrafts of the nationalised industries has been reduced from £123 million on 15th August, 1956, just prior to the first Exchequer advances, down to a figure of £55 million on 17th April last, representing their current short-term need. I cannot yet make a statement about the Government's intention as to the financing of the industries after the expiry of the Exchequer's lending power in March. 1958.

Mr. Grimond

Whilst thanking the right hon. Gentleman for that answer, may I ask whether it is the case that their financing, whether long-term or short-term, will be done by overdraft until a decision is taken?

Mr. Thorneycroft

Rather the contrary. It was being done long-term largely by overdraft and, under the new method of financing, the overdraft is limited to short-term needs as in the case of ordinary industry.