§ 42. Mr. Grimondasked 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. ThorneycroftThe 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. GrimondWhilst 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. ThorneycroftRather 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.