§ Mr. MansTo ask the Secretary of State for Energy if he will make a statement on the financial outlook for the British Coal Corporation for 1989–90.
§ Mr. ParkinsonAs I announced on 6 February at column479–480 the corporation is expected to make a further substantial loss in 1989–90.
The balance sheet at March 1990 will also be affected by the need to bring the corporation's accounting treatment for its concessionary coal liabilities into line with statement of standard accounting practice 24. This change will not affect the future stream of concessionary coal liabilities as already anticipated by the corporation, but will affect the way in which these liabilities are accounted for. Creating a provision in the corporation's balance sheet in respect of these liabilities will involve a prior year adjustment. This will substantially increase the accumulated deficit shown in the corporation's accounts at 31 March 1990.
The Government have given an assurance each year since 1982–83 that, subject to Parliament approving any necessary provisions, adequate funds will continue to be made available to enable the Corporation to meet its financial obligations as they fall due. A minute was laid before the House on 8 June setting out the Government's intention to extend this commitment to include the corporation's financial year ending 31 March 1990.