§ Mr. Nottasked the Chancellor of the Exchequer what is the approximate percentage increase required in elecricity and gas tariffs, respectively, in order to replace the estimated 1968 level of capital investment in these industries which was financed out of taxation in the last Budget.
§ Mr. MasonI have been asked to reply.
New investment by the electricity and gas industries is financed party from their own resources (mainly depreciation and surplus) and partly by borrowing from the National Loans Fund. The way in 175W which the National Loans Fund is financed is a matter for my right hon. Friend the Chancellor of the Exchequer.
Estimates of capital requirement and borrowing for 1968–69 were published in March, 1968, in Cmnd. 3565, Loans from the National Loans Fund 1968–69, as follows:
Electricity (England and Wales) £m. Gas Capital Requirements … 562 310 Borrowing from N.L.F. … 237 292 To eleminate all new borrowing in 1968–69, electricity industry revenues would have had to be increased by about 20 per cent., and for the gas industry by about 50 per cent. after allowing for the effect of increases in gas and coke prices which came into effect in April and May, 1968.