§ Mr. HainTo ask the Chancellor of the Exchequer if he will list the debts written off by the Government for each industry privatised since 1979 and the total. [19972]
§ Sir George YoungIt is common practice for capital restructuring to be undertaken where necessary before privatisation. For some privatisations debt is written off; for others debt is injected. The table shows the debt written off—and the type of debt concerned—and debt injected for each company privatised where either occurred. Debts shown as written off include all debt written off since 1979 in companies subsequently privatised. Receipts from privatisation have amounted to £60 billion over the past 15 years.
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Debt written off and debt injected prior to privatisation Industry Debt written off Year £ million Debt injected Type of debt Year £ million British Transport Docks Board2 1982–83 81.3 National Loans Fund 1982–83 25 British Telecommunications 1984–85 2,789.9 National Loans Fund 1984–85 3,500 British Gas — — — 1986–87 2,500 BAA 1986–87 43.5 National Loans Fund — — British Steel 1988–89 500.0 Public Dividend Capital — — British Steel 1988–89 3,480.0 Borrowing under Iron and Steel Act 1982 — — Harland and Wolff 1989–90 422.5 Assistance under Aircraft & Shipbuilding Industries (Northern Ireland) Order 1979 — — Short Brothers 1989–90 390.0 Loan by DED — — Water companies 1989–90 4,973.3 National Loans Fund 1989–90 72.9 Water companies 1989–90 55.0 Public Works Loan Board — — Electricity (England and Wales) — — — 1990–91 3,583 Electricity (Scotland)3 1991–92 1,043.6 National Loans Fund 1991–92 625.9 NTL — — — 1991–92 22 Northern Ireland Electricity — — — 1993–94 70.3 Belfast Airport — — — 1994–95 15.2 British Coal 1994–95 1,633.4 Voted Loans — — Total — 16,241.8 — — 10,414.3 Notes:
1 Privatised as National Freight Consortium (now NFC).
2 Privatised as Associated British Ports Holdings.
3 Prior to privatisation, National Loans Fund Debt due to the South of Scotland Electricity Board nuclear programme of £1,368.4 million was transferred to Scottish Nuclear Ltd. and subsequently written off.