§ 1. Mr. Arnoldasked the Secretary or State for Industry what progress has been made towards establishing a formula which requires public corporations to finance a specific percentage of capital expenditure out of revenue.
§ The Minister of State, Department of Industry (Mr. Gregor Mackenzie)The Government fully intend that overall the nationalised industries should finance a higher proportion of their capital requirements from their own resources. Because of the varying circumstances of individual nationalised industries, it would not be appropriate to establish a set formula for self-financing.
§ Mr. ArnoldIs it not the case that publication of and, even more important, compliance with such a formula would be in the public interest? Does the Minister not accept that it would serve as a further indication of the Government's resolve to discipline the expenditure activities of public corporations, as part of their contribution towards the battle against inflation?
§ Mr. MackenzieThe hon. Gentleman will be aware that in the discussions on the Statutory Corporations (Financial Provisions) Bill last summer my right hon. Friend the Chief Secretary indicated that the Government would be having discussions with the nationalised industries. It would not be appropriate at this stage, particularly in the Department for which I am responsible, to fix these targets. 1228 Discussions will be taking place in due course.