HC Deb 18 May 1965 vol 712 cc1196-7
24. Mr. Peyton

asked the Minister of Power why, when the estimated repayment by the National Coal Board in 1964–65 was £13 million, a net borrowing of £29 million for that year took place; and when he expects the borrowing powers of the Board to be exhausted.

Mr. Frederick Lee

As I informed the House on 12th April, 1965, the Board was relieved of its obligation to make a contribution of £10 million towards fixed assets replacement in 1964–65. This sum was not, therefore, available to finance investment and additional working capital was also required for other purposes including the financing of stocks. There is no reason to expect that the Board's borrowing requirements will exceed the existing statutory limits which expire at the end of this year. Parliament will be asked to fix fresh limits in the legislation which the Government will introduce before then.

Mr. Peyton

Does not the Minister realise that his answer has not even begun to explain the obvious discrepancy of figures which appears in the financial statement showing that, whereas the Board was intending to repay £13 million, it in fact borrowed £29 million? Nothing that the right hon. Gentleman said explained this fact. Will he now do so?

Mr. Lee

The White Paper published by the previous Government in April, 1964 estimated that there would be a further repayment of £13 million in 1964–65. This was converted to an estimated net borrowing of £29 million in the subsequent White Paper of March, 1965. The actual net borrowing in 1964–65 was £33 million.

Mr. Wainwright

Will my right hon. Friend look at the whole finances of the National Coal Board, taking into consideration its liability because of the price of imported coal being above the inland price and many other accounts for which the Board has been responsible? Will he also bear in mind that the Board is entitled to greater benefits from this Government than ever the previous Government intended to give?

Mr. Lee

Yes, but let us keep in mind that the actual net borrowing from the Exchequer in 1964–65, as I said, was £33 million, but the Board's accounts are expected to show a small surplus on revenue account. We should keep that in mind when discussing its borrowing powers.