HC Deb 31 March 1976 vol 908 cc486-8W
Mr. Mike Thomas

asked the Secretary of State for Energy what was the total subsidy given to the National Coal Board, British Gas Corporation and electricity industry, respectively, in each of the past five years; and what are his estimates for the current year and 1977–78 of the respective figures and his policies in this respect.

Mr. Benn

The information requested is set out in the following tables in terms of payments in the financial years concerned. The year 1975–76 is expected to be the last for which compensation for price restraint will be paid. The Government's general policy is that the nationalised industries should operate without subsidies. We have, however, acknowledged an obligation to assist the coal industry with the burden of the past and to provide support for its operations in certain circumstances.

NATIONAL COAL BOARD
£million
1970–71 1971–72 1972–73 1973–74 1974–75 1975–76†§ 1976–77†§ 1977–78†§
Grants in connection with pit closures 8.5 9.3 9.1 17.0 9.1 9.4 10.3 10.3
Reimbursement of contributions to early retirement benefits 2.3 0.8 1.2 2.5 3.3 3.1 1.4 1.3
Reimbursement of contributions towards increased pensions 8.3 8.3 8.4
Contribution towards deficiency in Mineworkers' Pension Scheme 9.6 18.0 18.0
Operational grants 109.0 3.3 44.4 —‡ —‡
Grants to meet deficits on revenue account 100.0 2.5 128.2
Debt written off in capital reconstruction 449.6*
Total for Year 10.8 110.1 459.9 139.3 152.2 74.9 29.7 29.6
* Includes £174.5 million in respect of accumulated revenue losses to the end of March 1973.
† 1976 Survey Prices.
‡ Decisions yet to be taken.
§ Estimates.
BRITISH GAS CORPORATION
£ million
1970–71 1971–72 1972–73 1973–74 1974–75 1975–76 1976–77* 1977–78*
Compensation for additional gasification of coal and production of coke 0.6
Compensation for accelerated investment 0.4 0.2 0.1
Compensation for price restraint 33.4 41.5 23.6† 7.0
Total for Year 0.6 33.8 41.5 23.8 7.1
* Estimates.
† Advance under section 1(4) of the Statutory Corporations (Financial Provisions) Act 1975. Payment of compensation not yet authorised.
ELECTRICITY INDUSTRY (ENGLAND AND WALES)
£ million
1970–71 1971–72 1972–73 1973–74 1974–75 1975–76 1976–77* 1977–78*
Compensation for price restraint 92.3 176.3 302.6‡ 21.6
Compensation for additional stock build 19.9 5.0
Payments for the cost of additional coal burn 0.7 0.8
Compensation for accelerated investment 0.7 4.4 9.6 9.7 6.3
Total for Year 0.7 0.8 19.9 98.0 180.7 312.2 31.3 6.3
* Estimates.
† Includes £43.4 million advanced under section 1(4) of the Statutory Corporations (Financial Provisions) Act 1975.
‡ 1976 Survey Prices.

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