§ Mr. Dubsasked the Secretary of State for Industry what percentage of capital investment in Post Office posts and telecommunications businesses has been financed out of revenue in each of the last four years; and what is the estimated figure for 1981.
§ Mr. Kenneth BakerThe postal business financed all its capital requirements from internally generated funds in 1977–78, 1978–79 and 1979–80, and is estimated to have done so again in 1980–81.
The telecommunications business financed all its capital requirements from internally generated funds in 1977–78 and 1978–79, 79 per cent. in 1979–80 and is estimated to have financed 100 per cent. in 1980–81. The outcome for 1979–80 and 1980–81 is, however, distorted by industrial action in 1979 which delayed the issue of bills. But for this distorted factor, the telecommunications business would have financed all its capital requirements from internally generated funds in 1979–80 and about 85 per cent. in 1980–81.
The financing plans for 1981–82 contained in the 1981–82 Financial Statement and Budget Report imply a self-financing ratio of 92 per cent. for the postal business. The financing of the telecommunications business in 1981–82 is subject to review.