§ Mr. Lubbockasked the Chancellor of the Exchequer if he will bring up to date and circulate in the OFFICIAL REPORT the table on page 11 of Cmnd. 1337 of April, 1961, showing the performance of nationalised industries; and if he will add to the table a column showing the profitability target in each case.
§ Mr. DiamondThe following brings up to date the table on page 11 of Cmnd. 1337. A list of the agreed financial objectives is shown separately: they are not included in the table as in most cases they refer to a five-year period.
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Yearly Results £ million 1954 1955 1956 1957 1958 1959 National Coal Board - 3.5 -19.6 12.8 - 5.3 - 3.5 -24.0 Gas Council and Board 1.9 0.8 3.8 2.8 - 1.5 - 2.4 Electricity Authorities and Boards (England and Wales) 18.8 12.2 11.7 16.1 27.3 26.7 Electricity Board (South of Scotland) — 0.6 1.2 0.5 0.27 0.1 Electricity Board (North of Scotland) 0.3 - 0.8 - 0.2 — - 0.1 - 0.03 British Transport Commission - 11.9 -30.6 -54.4 -63.5 -89.0 -73.8 British Railways Board — — — — — — London Transport Board — — — — — — British Transport Docks Boar — — — — — — British Waterways Board — — — — — — Transport Holding Company — — — — — — British European Airways 1.06 0.61 0.06 1.08 0.23 2.1 British Overseas Airways Corporation - 0.03 0.85 0.59 - 3.19 -11.36 - 0.29 Post Office Up to 1955-56 Exchequer received only surplus - 3.1 2.6 8.7 20.9 190W 191W
Yearly Results Unallocated Reserves and Revenue Balances carried forward at the end of 1963 £ million 1960 1961 1962 1963 £ million As a percentage of capital employed at the end of 1963 National Coal Board -21.3 -15.0 1.4 0.1* - 74.2 — Gas Council and Boards 2.0 3.3 4.9 9.6 38.1 5.0 Electricity Authorities and Boards (England and Wales) 16.3 26.9 42.5 70.4 308.7 10.9 Electricity Board (South of Scotland) 0.4 0.4 1.78 1.6 6.4 2.7 Electricity Board (North of Scotland) 0.2 1.7 1.5 - 0.3 2.3 1.0 British Transport Commission -100.9 -122.0 -143.6 † -717.0‡ — British Railways Board — — — -133.9 § — London Transport Board — — — 2.1 0.2 0.1 British Transport Docks Board — — — 0.7 0.8 0.9 British Waterways Board — — — - 1.5 § — Transport Holding Company — — — 6.4|| 3.0 2.0 British European Airways 1.5 - 1.5 - 1.04 3.0 0.33 0.37 British Overseas Airways Corporation - 1.6 -49.7 -12.9 -10.4 -87.2 — Post Office 24.3 13.1 12.1 30.7 26.6 2.2 NOTES: * Because of a change in financial years this covers a 15 month period. † On 1st January 1963 the British Transport Commission was succeeded by the five separate undertakings which immediately follow it in the table ‡ The balance of the accumulated revenue deficit of £717m. at 31st December 1962 not already met by Exchequer grant was extinguished under the provisions of the Transport Act 1962. § Revenue deficits incurred by the British Railways Board and British Waterways Board are at present met by Exchequer grant under the provisions of the Transport Act 1962. || After taxation of £3.6m.
Industry Financial Objective Period Covered Electricity Boards (England and Wales) … … average 12-4% gross* 1962–63–1966–67 South of Scotland Electricity Board … … 12.4% gorss* 1962–63–1966–67 North of Scotland Hydro-Electric Board … … (see footnote‡) Gas Boards … … average 10-2% gross* 1962–63–1966–67 National Coal Board … … (see footnote†) 1963 onwards Post Office … … 8% net (after depreciation) 1963–64–1967–68 British European Airways … … 6% net 1963–64–1967–68 London Transport Board … … (see footnote §) 1963–67 * Before interest or depreciation. † The N.C.B. objective is not expressed as a per cent. return on assets: it is to break even from 1963 after paying interest and making proper provision for depreciation including £10 million a year to help cover the difference between depreciation at historic and replacement cost. The Board has recently been relieved of this latter obligation for the time being. ‡ As an interim measure the N.S.H.E.B. have agreed to apply such tariff increases as will give a similar percentage increase in revenue as the tariff increases applied by the S.S.E.B. § The L.T.B. objective is to earn an average balance of revenue of £4m. a year, after paying interest and making provision for depreciation at historic cost. This objective represents a net return of 5 per cent.