§ Mr. Bishopasked the Secretary of State for Trade and Industry what is the capital indebtedness of the National Coal Board and what is the annual amount paid in interest; and if he will give permission to the National Coal Board to retain the capital raised by Her Majesty's Government's enforced sale of the board's non-coal producing assets.
§ Mr. EmeryAt the end of the National Coal Board's last financial year the board's capital indebtedness, apart from bank overdrafts, was£666.9 million, consisting of net loans from the Government. The interest payable on Government loans during that year was£38.8 million. The board's capital indebtedness at the end of its current financial year is expected to be reduced to about£400 million by the capital reconstruction provided for in the Coal Industry Bill. The board does not need permission to retain any proceeds from sales of assets.
§ Mr. Percivalasked the Secretary of State for Trade and Industry what recent discussions he has had with the Chairman 255W of the National Coal Board; and if he will make a statement.
§ Mr. Tom BoardmanI have had discussions with the board about allegations, made after a draft report by an NCB official came into the hands of the Press in April 1972, that suppliers of equipment had induced the Board to buy too many spare parts at too high a price. The matter has now been investigated by the board's Government-appointed auditors.
The chairman of the board announced on 11th January that the auditors found no evidence to support these allegations, and that they did not consider there were serious inadequacies in the board's procedures relating to the purchase of the equipment concerned. The auditors' report has now been completed and is being released to the Press and other interested parties today. The report confirms the preliminary findings and makes some proposals for improvements in procedures.
While the report gives no grounds for supposing that there is any serious weakness in procedures for purchasing other equipment, the board has nevertheless decided to put in hand a more general review of its purchasing procedures. The review will be carried out by independent experts.
The report makes reference to an earlier investigation into allegations of impropriety in the business conducted between the board and Bonser Engineering Limited. Those allegations, which imputed impropriety on the part of certain members of the NCB, were at the Government's request investigated in 1970 by Mr. Michael Kerr, QC, now Mr. Justice Kerr. Mr. Kerr found that there was no substance whatever in the allegations. The DTI is today issuing a Press statement about that investigation.