HC Deb 21 April 1969 vol 782 cc17-8
16. Mr. Michael Heseltine

asked the Minister of Transport what additional lending there has been by the joint stock banks to the National Freight Corporation and the National Bus Company since 1st January, 1969.

Mr. Carmichael

On 10th April, the latest date for which we have information, neither undertaking had an overdraft.

Mr. Heseltine

Would the hon. Gentleman be prepared to say that, for any future requirements, the various organisations listed—the National Freight Corporation and the National Bus Company—will be compelled to go to the Minister for their money and not have recourse to the joint stock banks, as they were doing late in 1968?

Mr. Carmichael

They do have borrowing rights under the Transport Act, 1968—the National Bus Company of £3 million and the Transport Holding Company of £15 million. As for their day-to-day work, the National Freight Corporation has loss-making activities like its sundries activities and it must have working capital for these because it is paid a grant by the Minister only every four months. So for their working overdraft they go to the joint stock banks. Otherwise, they have special drawing powers.

Forward to