HC Deb 26 February 1959 vol 600 cc1293-4
59. Mr. Grimond

asked the Chancellor of the Exchequer to what extent he now intends to alter the methods of providing capital for the nationalised industries.

The Economic Secretary to the Treasury (Mr. F. J. Erroll)

Under existing legislation, the Government are empowered to lend to the industries for capital purposes up to the end of August, 1959. I cannot at present say anything about the arrangements beyond that date.

Mr. Grimond

While accepting that situation, may I ask whether the Government have had any consultations over what has been done about the very large outstanding deficits of some of these industries?

Mr. Erroll

This matter is under consideration by my right hon. Friend.

Sir G. Nicholson

Will my hon. Friend at any rate undertake that nationalised industries will not be financed out of the floating debt?

Mr. Erroll

My right hon. Friend will look at that as well.