HL Deb 03 June 1981 vol 420 cc1334-40WA
Lord Campbell of Croy

asked Her Majesty's Government:

How much public money has been provided for investment in each of the nationalised industries in the years 1979–80 and 1980–81.

The Minister of State, Treasury (Lord Cockfield)

Nationalised industries finance their capital requirements from internally generated resources as well as by borrowing; and it is only their external finance which counts as public expenditure. The following table shows the external financial requirements, of which grants and net borrowing from the National Loans Fund are charged to Government accounts; the other components are included in the public expenditure planning totals. Corresponding figures for capital requirements and internal resources in the two years in question are set out in Table 3.3 of Cmnd. 8175 and Table 17A of the1981–82 Financial Statement and Budget Report.

FINANCING OF CAPITAL REQUIREMENTS OF THE NATIONALISED INDUSTRIES 1979–80
Table 3.3 £ million at outturn prices
Capital requirements(1) Financed by(1)
Internal resources(12) External finance
Fixed assets in the UK Other Total Current cost operating profit Interest, dividends and tax (2) Depreciation etc (3) Other receipts and payments Total Government grants (4) Issues of PDC (5) Net borrowing from the NLF Net overseas borrowing Net market borrowing Short-term borrowing and leasing Total(6)
National Coal Board … … … 665 -212 453 -327 -179 276 32 -198 244 — 184 128 1 94 651
Electricity (England and Wales) … … … 834 100 934 514 -482 629 84 745 5 — 837 -340 -483 170 189
North of Scotland Hydro-Electric Board … … 46 40 86 13 -51 60 5 27 11 — 13 8 -15 42 59
South of Scotland Electricity Board … … … 65 59 124 -16 -66 144 7 69 — — 67 45 -31 -26 55
British Gas Corporation … … … 402 74 476 466 -40 456 41 923 — — -120 -90 -205 -32 -447
British National Oil Corporation … … … 218 2 220 175 -40 112 — 247(7) — — 84(8) -108 -4 1 -27
British Steel Corporation … … … 289 -275(9) 14 -561 -196 200 -8 -565 — 905 -209 -34 — -83 579(9)
Post Office … … … 1,284 194(10) 1,478 755 -527 906 104 1,238 — — -184 -62 — 486 240(10)
British Airways Board … … … 289 -51 238 -9 -58 133 1 67 — 10 -6 149 -8 26 171
British Airports Authority … … … 54 -6 48 6 -13 51 4 48 1 — -1 — — — —
British Railways Board … … … 381 -196 185 -725 -62 166 92 -529 687 — 26 19 -1 -17 714
British Transport Docks Board … … … 13 2 16 15 -12 17 2 22 — — — — — -7 -7
British Waterways Board … … … 4 — 4 -22 -1 1 — -22 23 — 3 — — — 26
National Freight Company Ltd. … … … 35 5 40 -2 -12 16 10 12 11 — — — — 17 28
National Bus Company … … … 60 1 61 -42 -15 34 4 -19 60 — 12 — — 8 80
Scottish Transport Group … … … 16 -1 15 -9 -1 12 1 3 14 — 2 — -1 -3 12
British Aerospace … … … 42 67 109 (11) 4 (11) (tt) 56 — 33 20 — — — —
British Shipbuilders … … … 18 21 39 (11) -13 (11) (tt) -197 31 236 -55 — — 24 236
Total … … … 4,715 -175 4,540 -1,764 1,927 1,087 1,184 673 -285 -747 701 2,613
(1) The capital value of leased assets is included.
(2) The total figure for interest alone is £—1,691 million.
(3) Including cost of sales adjustment, monetary working capital adjustment and other items not involving movement of funds.
(4) Shows subsidies and capital grants received in the year.
(5) Including issues under Section 18 of the Iron and Steel Act 1975.
(6) Except in the case of BNOC, the figure shown against each industry is the outturn against its external financing limit for the year.
(7) Excludes the proceeds of advance payments for oil.
(8) Includes BNOC's net payments into the National Oil Account.
(9)The BSC figures exclude payments amounting to £121 million carried forward into 1980–81 in respect of liabilities which the Corporation was unable to meet during the steel strike.
(10) The PO figures take account of the effect of the billing dispute (£345 million).
(11) Current cost figures not available.
(12) The current cost breakdown of internal resources in general reflects broad adjustments to historic cost data.
FINANCING OF CAPITAL REQUIREMENTS OF THE NATIONALISED INDUSTRIES
A. 1980–81 Estimated Outturn(1)
Table 17 £ million
Capital requirements(2) Financed by(3)
Internal resources(t) External finance
Fixed assets in the UK Other Total Current cost operating profit Interest, dividends and tax (4) Depreciation etc.(5) Other receipts and payments Total Government grants(6) Net borrowing, issues of PDC(7) and leasing Total(8)
National Coal Board … … 800 -45 755 -268 -257 433 15 -77 251 581 832
Electricity (England and Wales) … 963 339 1,302 233 -568 1,234 228 1,127 5 170 175
North of Scotland Hydro-Electric Board 41 30 71 39 -61 47 4 29 16 26 42
South of Scotland Electricity Board … 134 15 149 -18 -79 157 31 91 — 58 58
British Gas Corporation … … 523 141 664 436 8 444 176 1,064 — -400 -400
British National Oil Corporation … 278 -23 255 298 -14 168 8 460(9) — -205(10) -205
British Steel Corporation … … 175 53 228 -712 -179 298 -300 -893 — 1,121 1,121
Post Office … … 1,613 -220 1,393 807 -529 1,237 15 1,530 — -137 -137
British Airways Board … … 270 6 276 -128 -76 160 16 -28 — 304 304
British Airports Authority … … 85 6 91 14 -13 68 4 73 — 18(11) 18
British Railways Board … … 342 -130 212 -818 -74 197 117 -578 673 117 790
British Transport Docks Board … … 10 1 11 7 -9 19 4 21 — -10 -10
British Waterways Board … … 7 — 7 -24 -2 1 2 -23 26 4 30
National Freight Company Ltd. … 36 -1 35 -5 -11 23 17 24 6 5 11
National Bus Company … … 64 -1 63 -55 -18 41 10 -22 66 19 85
Scottish Transport Group … … 16 -1 15 -10 -1 13 1 3 21 -9 12
British Shipbuilders … … 13 16 29 (12) -5 (12) (12) -136 42 123 165
Total … … 5,370 186 5,556 -1,888 2,665 1,106 1,785(13) 2,891
(1) No figures are included for British Aerospace. The sale to the public of shares in a successor company took place in February 1981, leaving the Government holding 48.4 per cent.
(2) The capital value of leased assets is included.
(3) The current cost breakdown of internal resources in general reflects broad adjustments to historic cost data.
(4) The total figure for interest alone is -£1,856million.
(5) Including cost of sales adjustment, monetary working capital adjustment and other items not involving the movement of funds.
(6) Shows subsidies and capital grants received during the year.
(7) Including issues under Section 18 of the Iron and Steel Act 1975.
(8) Except in the case of BNOC, the figure shown against each industry is the estimated outturn against its external financing limit for the year.
(9) Excludes the proceeds of advance payments for oil.
(10) Includes BNOC's net payments into the National Oil Account.
(11) Includes £19 million from the redemption of local authority bonds.
(12) Current cost figures not available.
(13) Of which: Government loans … 780
Issues of PDC (including issues under Section 18 of the Iron and Steel Act 1975) … 1,390
Overseas borrowing … -139
Market borrowing … -246
Short term borrowing and leasing … —
NATIONLISED INDUSTRIES' EXTERNAL FINANCING REQUIREMENTS
£ million
1979–80 1980–81(Provisional)
Government grants (1) Issues of PDC NLF (net) Overseas borrowing (net) Market borrowing (net) Short-term borrowing (net) Leasing Total Government grants (1) Issues of PDC NLF (net) Overseas borrowing (net) Market borrowing (net) Short-term borrowing (net) Leasing Total
National Coal Board … … … 244 — 184 128 1 75 19 651 251 — 486 85 — — 10 832
Electricity (England and Wales) … … … 5 — 837 -340 -483 159 11 189 5 — 396 -71 — -183 28 175
North of Scotland Hydro-Electric Board … … 11 — 13 8 -15 40 2 59 16 — 147 -64 -30 -28 1 42
South of Scotland Electricity Board … … — — 67 45 -31 -26 — 55 — — -34 -4 — 92 4 58
British Gas Corporation … … … — — -120 -90 -205 -57 25 -447 — — — -98 -204 -99 1 -400
British National Oil Corporation … … — — 84(2) -108 -4 1 — -27 — — -127(2) -76 -3 — 1 -205
British Steel Corporation … … … — 905(3) -209 -34 — -93 10 579 — 1,223(3) -50 -106 — 54 — 1,121
Post Office … … … — — -184 -62 — 433 53 240 — — 10 -94 — 95 42 -137
British Airways Board … … … — 10 -6 149 -8 2 24 171 — 10 -6 309 -9 — — 304
British Airports Authority … … … 1 — -1 — — — — — — — -1 — — 19(4) — 18
British Railways Board … … … 687 — 26 19 -1 -38 21 714 673 — 77 -18 -1 37 22 790
British Transport Docks Board … … … — — — — — -7 — -7 — — -8 — — -2 — -10
British Waterways Board … … … 23 — 3 — — — — 26 26 — 4 — — — — 30
National Freight Company Ltd. … … … 11 — — — — -4 21 28 6 — — — — 3 2 11
National Bus Company … … … 60 — 12 — — — 8 80 66 — 13 — — — 6 85
Scottish Transport Group … … … 14 — 2 — -1 -3 — 12 21 — -2 — -1 -6 — 12
British Aerospace(5) … … … — 33 20 — — — — 53
British Shipbuilders … … … 31 236 -55 — — 24 — 236 42 123 — — — — — 165
(1) Shows capital grants and subsidies received in the year.
(2) Includes BNOC's net payment into the National Oil Account.
(3) Subscriptions of capital under Section 18 of the Iron and Steel Act 1975.
(4) Redemption of local authority bonds.
(5) No 1980–81 figures are included for BAe. The sale to the public of shares in a successor company took place in February 1981, leaving the Government holding 48.4 per cent.