§ Mr. Sillarsasked the Chancellor of the Exchequer what is the rate of interest on the most recent capital borrowings of each nationalised industry.
§ Mr. Joel BarnettThe terms on which overseas loans are raised by the industries normally remain a confidential matter between the borrower and lender concerned. Loans from the National Loans Fund are made at rates which vary according to the period of the loan—which relates to the average life of assets558W in the industry—and the method of repayment. The current applicable rates are:
Nationalised Industry Period of Loan (Years) Rate per cent. per annum National Coal Board 15 12⅛ British Steel Corporation 17 13⅞ Electricity Council 25 13⅞ South of Scotland Electricity Board 25 13⅞ North of Scotland Hydro-Electric Board 25 13⅞ British Airports Authority 20 13⅞ British Airways Board 7 11¼ British Gas Corporation 10 11¼ British Railways Board 25 14¾ British Waterways Board 25 14¾ British Transport Docks Board 15 14¼ National Freight Corporation 10 13¼ National Bus Company 10 13¼ Scottish Transport Group 10 13¼ Post Office 9 13¼ 29 14⅞
§ Mr. Trotterasked the Chancellor of the Exchequer what is his estimate of the cost to the nationalised industries of applying the agreed norm of an extra £6 a week to their workers; and by what percentage it is estimated this will increase their prices assuming other factors remain unchanged.
§ Mr. Joel BarnettWage costs are only one of the determinants of nationalised industry prices. However, with the lower rate of pay increase which will result from applying the limit of £6 a week there are good prospects that the rate of price increase in the nationalised industries as a whole should be markedly lower next year.
§ Mr. David Priceasked the Chancellor of the Exchequer whether the Government's policy, expressed in paragraph 19 of their White Paper "The Attack on Inflation" (Command Paper No. 6151) that they will not foot the bill for excessive settlements in the nationalised industries through subsidies, by permitting extra borrowing or by allowing excess costs to be loaded on the public through increased prices or charges, will cover applications by nationalised industries to raise prices and charges currently in the pipeline—e.g. British Rail, British Gas and the Post Office Corporation—following pay settlements before 11th July 1975.
§ Mr. Joel BarnettThe Government's policy as set out in Cmnd. 6151 applies 559W to all wage settlements implemented after 1st August. The price increases now in the pipeline are necessary to enable the Government to achieve their objective of phasing out price restraint subsidies to the gas industry and to the Post Office and to limiting the subsidies paid to British Rail.