§ Mr. Grylls
asked the Secretary of State for Industry if he will make a statement on the capital structure of British Shipbuilders.
§ Mr. Adam Butler
The Government have decided, subject to the approval of a Supplementary Estimate, that British Shipbuilders will be financed by public dividend capital, and that advances will be made to allow the Corporation to repay loans drawn from the national loans fund on a temporary basis, presently standing at £135 million. The Corporation will not pay dividends on public dividend capital until they are profitable.
As I announced in my statement of 23 July, the Corporation has been given a nil commencing capital debt.