§ Mr. John Moore
asked the Secretary of State for Industry what was the total capital employed for private industry at the end of the last financial year; what dividends were paid by private industry for the same period; and what capital has been invested in private industry from both the capital markets and from internal financing in each year since 1945.
§ Mr. Denzil Davies
I have been asked to reply.
The available estimates of capital employed for all industrial and commercial companies relate to the written-down value of total fixed assets in the United Kingdom at current replacement cost, as defined in the national income and expenditure accounts, together with the book value of stocks and work in progress. They therefore exclude land, overseas investments and net current assets for which estimates are not available. For large listed companies engaged in manufacturing there are estimates, on various definitions, based on their published accounts; they are, however, less up to date than those on a national accounts basis. These estimates, together with estimates of dividends paid for the same group of companies, are shown in the table below: the definitions 345W are given in more detail in "Estimating companies' rate of return on capital
National Accounts Basis All industrial and commercial companies Published Accounts Large listed companies in manufacturing 1973 1975 1973 £m. £m. £m. Capital employed (at end year) 1. Net fixed assets in the United Kingdom at current replacement costs plus book value of stocks and work in progress (at end calendar year) 80,711 127,606 — 2. Net trading assets* (a) fixed assets adjusted to replacement costs — — 26,411 (b) fixed assets at historic costs — — 22,335 3. Shareholders' interest † (book value) — — 15,982 Dividends paid (ordinary and preference dividends net of associated advance corporation tax) 1,698 1,652 597 * Tangible net fixed assets plus net current assets—current assets other than investments, current liabilities other than bank overdrafts and loans, dividend provisions and corporation tax payable in next financial year. † Ordinary and preference shares plus capital and revenue reserves.
Estimates of funds generated by all industrial and commercial companies from internal sources are on the national accounts basis but are not available before 1955. Internal funds and identified net capital issues by all industrial and commercial companies from 1955 are shown below.
ALL INDUSTRIAL AND COMMERCIAL COMPANIES £ million Internal Funds* Net Capital Issues† 1955 1,813 236 1956 1,980 189 1957 2,008 281 1958 1,904 191 1959 2,111 251 1960 2,565 323 1961 2,234 436 1962 2,026 332 1963 2,559 341 1964 2,995 417 1965 3,046 426 1966 2,818 588 1967 2,849 447 1968 3,639 534 1969 3,649 529 1970 3,697 243 1971 4,215 450 1972 5,125 734 1973 7,145 271 1974 8,024 2 1975 8,450 1,065 * Gross trading and non-trading income before providing for stock appreciation and capital consumption, including dividends from overseas investments, investment grants and other capital transfers received less interest, dividends and taxes paid, and transfers to charities and public corporations. † Net capital issues in the United Kingdom by listed companies—and identified issues by unlisted companies—plus capital issues overseas.
employed"—Economic Trends No. 253, November 1974.