Nationalised Industries (Hansard, 24 February 1975)

§ 25. Mr. Palmer
asked the Secretary of State for Energy if he will require the nationalised coal, gas and electricity industries to show in their annual reports their working surpluses or deficits before the deduction of interest charges, and that each such annual report should state the total sum contributed in the year under review to the National Exchequer in the form of interest payments.

§ Mr. Varley
The annual reports and accounts of these industries already provide information in this form.

§ Mr. Hastings
asked the Secretary of State for Energy what the net loss of the 10W coal, electricity and gas industries has been from 1948 to the present day.

§ Mr. Varley
Over the financial years 1948–49 to 1973–74 inclusive the nationalised energy industries made a net profit of £16.8 million. The individual industries' results for the period concerned were as followsCoal: £497.3 million net loss. Electricity: £446.3 million net profit^*. Gas: £67.8 million net profit. These results are given before Government grants to meet deficits on the revenue account and compensation for price restraint, but after grants received for other specific purposes. ^*Up to 1954–55 these figures include South of Scotland Electricity Board. Thereafter, the figures refer to England and Wales.

§ Mr. Hastings
asked the Secretary of State for Energy what the output per £100 of labour and capital, of the nationalised industries for which he is responsible, has been in the year 1971, and in subsequent years, as compared with private manufacturing industries.

§ Mr. Varley
On a very crude basis of calculation, about two-thirds over the period as a whole. But the comparison is meaningless not least because of the form of the price restraint policies operated by the previous Conservative Government.

§ Mr. Hastings
asked the Secretary of State for Energy what proportion of the total national investment in fixed assets has gone to the nationalised industries for which he is responsible on average since 1948.

§ Mr. Varley
Calculated as an un-weighted average of the proportions in each year, gross fixed capital formation in the coal, electricity and gas industries in the period 1948 to 1973 of the corresponding United Kingdom total was 11.1 per cent. Figures for 1974 are not yet available.

§ Mr. Hastings
asked the Secretary of State for Energy what subsidies have been received by the nationalised industries for which he is responsible from 1956 to the present day, including subsidies on current accounts, capital grants and debts written off.

§ Mr. Varley
Following is the information requested: 11W

NATIONAL COAL BOARD

£m.

1956–65 1965–66 1966–67 1967–68 1968–69 1969–70 1970–71 1971–72 1972–73 1973–74

Grants in connection with pit closures … … — — 1.3 5.2 10.8 9.2 8.5 9.3 9.1 17.0

Reimbursement of contributions to early retirement benefits … … … — — — — 3.1 1.3 2.3 0.8 1.2 2.5

Reimbursement of losses incurred in postponing pit closures … … … — — — 1.0 1.4 — — — — —

Reimbursement of contributions towards increased pensions … … … — — — — — — — — — 8.3

Operational grants … … — — — — — — — — — 109.0

Grants to meet deficits on revenue account … … — — — — — — — 100.0 — 2.5

Debt written off in capital reconstruction … … — 415.0^* — — — — — — 449.6† —

Total … … … — 415.0 1.3 6.2 15.3 10.5 10.8 110.1 459.9 139.3

Grand Total for the period 1956 to 1974–75=£1,168.4.

^* Includes 90.8 in respect of accumulated revenue losses to the end of March 1965 and 24.8 for revenue losses in 1965–66.

† Includes 174.5 in respect of accumulated revenue losses to the end of March 1973.

12W 13W

BRITISH GAS CORPORATION

£m.

1966–67^* 1967–68 1968–69 1969–70 1970–71 1971–72 1972–73 1973–74

Compensation for additional gasification of coal and production of coke … … … … … — — 1.2 1.2 0.6 — — —

Compensation for accelerating capital expenditure to promote employment … … … … … — — — — — — — 0.4

Compensation for price restraint … … … … — — — — — — — 33.4

Total for year … … … … … — — 1.2 1.2 0.6 — — 33.8

Grand Total 1966–1973–74=£36.8 million.

^* Figures for the period prior to 1966 are not readily available.

ELECTRICITY INDUSTRY (ENGLAND AND WALES)

£m.

1956–67 1967–68 1968–69 1969–70 1970–71 1971–72 1972–73 1973–74

Compensation for price restraint … … … … — — — — — — — 92.3

Compensation for additional stock build … … — — — — — — 19.9 5.0

Payments for the cost of additional coal burn … … — 1.5 9.2 3.4 0.7 0.8 — —

Payments in connection with advanced capital expenditure — — — — — — — 0.7

Total for year … … … … … — 1.5 9.2 3.4 0.7 0.8 19.9 98.0

Grand Total for the period 1958–1974–75=£1,335.

14W 15W

§ Mr. Hastings
asked the Secretary of State for Energy what was the net return on assets since 1955 for the nationalised industries for which he is responsible as compared with privately-owned companies.

§ Mr. Varley
I regret that I am not yet in a position to give the hon. Member an answer on this matter, but I shall let him have a reply as soon as possible.

§ Mr. Hastings
asked the Secretary of State for Energy what sum has been paid by the nationalised industries for which he is responsible in United Kingdom taxes on income during the period 1962 to the present day, as compared with privately-owned companies.

§ Mr. Varley
No payments of taxes on income were made by these industries during the period 1962 to 1973 inclusive. During the same period taxes on income paid by privately-owned companies amounted to £13,691 million.

§ Mr. Hastings
asked the Secretary of State for Energy what the average increase in output per £100 of extra capital investment has been in the nationalised industries for which he is responsible from 1938 until the present day, as compared with private manufacturing companies.

§ Mr. Varley
I regret that this information could only be obtained at a disproportionate cost.

NATIONAL COAL BOARD
£m.
				1956–65	1965–66	1966–67	1967–68	1968–69	1969–70	1970–71	1971–72	1972–73	1973–74
Grants in connection with pit closures	…	…	—	—	1.3	5.2	10.8	9.2	8.5	9.3	9.1	17.0
Reimbursement of contributions to early retirement benefits	…	…	…	—	—	—	—	3.1	1.3	2.3	0.8	1.2	2.5
Reimbursement of losses incurred in postponing pit closures	…	…	…	—	—	—	1.0	1.4	—	—	—	—	—
Reimbursement of contributions towards increased pensions	…	…	…	—	—	—	—	—	—	—	—	—	8.3
Operational grants	…	…	—	—	—	—	—	—	—	—	—	109.0
Grants to meet deficits on revenue account	…	…	—	—	—	—	—	—	—	100.0	—	2.5
Debt written off in capital reconstruction	…	…	—	415.0^*	—	—	—	—	—	—	449.6†	—
Total	…	…	…	—	415.0	1.3	6.2	15.3	10.5	10.8	110.1	459.9	139.3
Grand Total for the period 1956 to 1974–75=£1,168.4.
^* Includes 90.8 in respect of accumulated revenue losses to the end of March 1965 and 24.8 for revenue losses in 1965–66.
† Includes 174.5 in respect of accumulated revenue losses to the end of March 1973.

BRITISH GAS CORPORATION
£m.
						1966–67^*	1967–68	1968–69	1969–70	1970–71	1971–72	1972–73	1973–74
Compensation for additional gasification of coal and production of coke	…	…	…	…	…	—	—	1.2	1.2	0.6	—	—	—
Compensation for accelerating capital expenditure to promote employment	…	…	…	…	…	—	—	—	—	—	—	—	0.4
Compensation for price restraint	…	…	…	…	—	—	—	—	—	—	—	33.4
Total for year	…	…	…	…	…	—	—	1.2	1.2	0.6	—	—	33.8
Grand Total 1966–1973–74=£36.8 million.
^* Figures for the period prior to 1966 are not readily available.

ELECTRICITY INDUSTRY (ENGLAND AND WALES)
£m.
						1956–67	1967–68	1968–69	1969–70	1970–71	1971–72	1972–73	1973–74
Compensation for price restraint	…	…	…	…	—	—	—	—	—	—	—	92.3
Compensation for additional stock build	…	…	—	—	—	—	—	—	19.9	5.0
Payments for the cost of additional coal burn	…	…	—	1.5	9.2	3.4	0.7	0.8	—	—
Payments in connection with advanced capital expenditure	—	—	—	—	—	—	—	0.7
Total for year	…	…	…	…	…	—	1.5	9.2	3.4	0.7	0.8	19.9	98.0
Grand Total for the period 1958–1974–75=£1,335.