NATIONAL CORPORATIONS: FINANCING OF CAPITAL EXPENDITURE

HL Deb 25 November 1970 vol 313 cc229-30WA

LORD KILLEARN

asked Her Majesty's Government:

Whether it is now their policy that, as is evidently to happen with the modernisation of the Post Office telephone system, National Corporations shall finance capital outlay from current revenue.

EARL JELLICOE

The Government expect all nationalised industries to finance some portion of their capital requirements from internal resources. The Government's objective is to reduce taxation, and for this reason it is the Government's policy to ensure that the industries operate on a sound economic and commercial basis. In many cases, such as that of the Post Office telecommunications business, this policy will result in levels of self-financing more comparable with those prevailing in the private sector.