§ Mr. Michael Marshallasked the Secretary of State for Energy what were the financial targets set for the National Coal Board over the last 10 years in terms of net assets; and how well the Board has done in meeting those targets after allowing for interest payments, depreciation and tax.
§ Mr. EadieNo financial targets were set in terms of a return on net assets. The following financial targets were set
From 1963: To break even after interest and depreciation including £10 million a year to cover the difference between depreciation at historic cost and replacement cost. (The objective was waived for 1964–65 and 1965–66.)From 1969–70: To break even after interest and historic cost depreciation. The Financial Framework for the National Coal Board, published in the Final Report of the Coal Industry Examination, 1974, stated that the Board would bear all the current costs of production and aim to make provision for maintaining productive capacity.The National Coal Board's profit (loss) after historic cost depreciation, interest and tax has been:
£ million 1967–68 0.4 1968–69 (8.9) 1969–70 (26.3) 1970–71 0.5 *1971–72 (157.0) 1972–73 (83.6) *1973–74 (130.7) 1974–75 — 1975–76 5.3 1976–77 27.2 *The figures for 1971–72 and 1973–74 do not include special grants of £100 million and £130.7 million, respectively.