§ Mr. Hardyasked the Secretary of State for Energy what steps the Government intend to take to meet the deficits of the gas and electricity industries once the compensation provided for under the Statutory Corporations (Financial Provisions) Act 1974 is exhausted; and how they will alleviate the cash flow problems of the industries meanwhile.
§ Mr. VarleyThe Government intend to introduce legislation to amend the Statutory Corporations (Financial Provisions) Act 1974. The Bill will include suitable provisions to enable the industries to meet their interim short-term financial requirements pending the final settlement of compensation. In the meantime, arrangements have been made with my right hon. Friend the Chancellor of the Exchequer which will permit the industries to borrow from the National Loans Fund by way of short-term bridging finance at normal interest rates for short-term loans. These loans will be repayable on the date when compensation payments are made.