HC Deb 18 March 1969 vol 780 c188
27. Mr. Kenneth Baker

asked the Minister of Power whether, in view of Her Majesty's Government's new policy on financing of nationalised industries, he plans to raise a loan in an overseas market for the nationalised industries for which he is responsible.

Mr. Mason

Under the statutes it is the nationalised industries concerned which raise loans of this kind. The hon. Member will be aware that the Gas Council is exercising its powers under Section 4 of the Gas and Electricity Act, 1968, by borrowing 300 million deutsche-marks, which is about £30 million, on the German market.

Mr. Baker

Is the Minister aware that many people in this country will be resentful that the German investing public now have a chance to invest in North Sea gas? If he devised a form of equity participation, sufficient money would be forthcoming in this country for all his capital requirements. Before he embarks on the rôle of international financier, may I ask him to appreciate that if the Deutschemark is revalued the guarantee that the Treasury has given today could be the most expensive the British taxpayer has ever had to bear.

Mr. Mason

It is through the co-operation of the Treasury that this has been made possible. I am sorry that the hon. Gentleman takes such a narrow-minded attitude about it. The balance of payments will benefit by it, and the Gas Council is pleased to adopt this method.

Mr. Emrys Hughes

Is not it an extraordinary development that we are borrowing such a large sum of money for a nationalised industry? How soon will it be before we go to Germany and ask for money to finance the Army and Navy?

Mr. Mason

I am not interested in the latter part of my hon. Friend's question. The Gas Council thinks that this is a good thing. I applaud it, and there is no reason why we should not take advantage of it.