§ Mr. Grocottasked the Secretary of State for Industry which aspect of those 371W nationalised industries for which he is the sponsoring Minister is constrained by cash limits; what is the amount of cash limit imposed in each case; what is the performance of the industries against these limits; what proportion was used to cover up operating losses; and what proportion was used to finance investment.
§ Mr. KaufmanCash limits have been set on the total external funding requirements of British Aerospace, British Shipbuilders, the British Steel Corporation and the Post Office. No provision has been included for British Aerospace and British Shipbuilders in the cash limits published in the Financial Statement and Budget Report (FSBR) for 1977–78.
The cash limit for BSC in both 1976–77 and 1977–78 was set at £950 million. The Corporation's outturn against the limit in 1976–77 was £947 million. Expenditure of £596 million on fixed assets and £419 million on other capital requirements was financed by £947 million counting against the cash limit and £68 million from inter-
BRITISH STEEL CORPORATION £ million Borrowing from the Government Public Dividend Capital Borrowing from Overseas Subsidies and Compensation Internal Financing* 1972–73 … … 143 — — Not applicable 124 1973–74 … … —3 — 45 Not applicable 159 1974–75 … … —78 45 215 Not applicable 204 1975–76 … … 131 345 184 Not applicable —68 1976–77 … … 161 490 214 Not applicable 85 * Includes Regional Development Grant.
POST OFFICE £ million Borrowing from the Government Public Dividend Capital Borrowing from Overseas Compensation for Price Restraint Internal Financing* 1972–73 … … 423 — — — 203 1973–74 … … 113 — 213 133 180 1974–75 … … 363 — 216 307 80 1975–76 … … 217 13 37 — 661 1976–77 … … —39 — 245 9 897 Short-term borrowing is not shown in the tables.
Information on the capital requirements and financing of all the nationalised industries for 1977–78—including allowances for borrowing by British Aerospace and British Shipbuilders—is given in Part 3 of the White Paper on the Government's expenditure plans, volume II, Cmnd 7049–II.
Accounts for British Aerospace British Aerospace and British Shipbuilders have not yet been published.
372Wnally generated funds net of operating loss.
The cash limit for the Post Office was set at £335 million for 1976–77 and minus £30 million for 1977–78. The Corporation's outturn against the limit in 1976–77 was £218 million. The Post Office did not make an operating loss in 1976–77. Expenditure on fixed assets was £867.5 million.
§ Mr. Grocottasked the Secretary of State for Industry if he will list for each of the national industries for which he is responsible for each year since 1972 the source of funds distinguishing between (a) borrowing from the Government, (b) borrowing from overseas, (c) subsidies from Government grants and compensation and (d) internal financing.
§ Mr. KaufmanThe following figures showing the sources of funds for the British Steel Corporation and the Post Office are taken from published reports and accounts for the years 1972–73 to 1976–77: