§ Mr. Ridleyasked the Minister of Power if he will list the nature and value of each of the obligations and debts, to the value in total of £195 million, which were re-financed by the British Steel 78W Corporation out of Exchequer loans during 1967–68, and of further such obligations and debt that are to be refinanced during 1968–69; and if he will give the estimates for each item as budgeted for in each financial year.
§ Mr. FreesonThe figures are as follows:
Sums Refinanced by B.S.C. out of Borrowings in the year ended 31st March, 1968 Sums allowed for in Calculating the Borrowing Limit £ million £ million Funding of bank overdrafts of companies 80* 32 Funding of trade bills and acceptance credits 47* — Repayment of loans to former parent companies 48 45 Repayment of loans from Finance Corporation for Industry to the companies 20† 82 195‡ 159 Notes:
* The Government had assumed that the existing level of bank overdrafts of the companies at vesting date would continue after vesting date in the name of the companies and would not count as borrowings under the Act. Allowance was made only for the repayment of £32 million of secured overdrafts. The Corporation found it necessary to fund these items in full so that the whole counted against the limit.
† The total of F.C.I, loans outstanding at vesting date was £59 million; allowance had been made for repayment of loans to the full amount of the facilities arranged by the companies. The Corporation have arranged with the F.C.I, to repay the loans at about £20 million a year up to March 1970.
‡ These sums were re-financed out of the Corporation's total borrowing in the year of £252 million of which £175 million was from the Exchequer.
A further £19.5 million of F.C.I, loans is to be repaid in the year to 31st March, 1969.