§ Mr. Kenneth Clarkeasked the Secretary of State for Energy what effect the continuing failure of the National Coal Board to meet its financial targets and to make its planned contribution to its own capital investment programme will have on the future capital investment programme of the coal industry; whether the Government intend to make up any shortfall in the National Coal Board contribution to the investment programme 107W out of central Government funds; and whether he will make a statement.
§ Mr. BennAs stated in its annual report, the Board achieved a self-financing ratio of 37.5 per cent in 1977–78 and 44.5 per cent. in 1976–77—after taking into account Government grants—compared with an aim of 50 per cent. over a five-to six-year period. Despite the adverse effect on cash flow, due mainly to the current recession in the steel industry, the Board will continue to endeavour to achieve this aim.
The Government have no intention of allowing short-term difficulties to affect capital investment in the industry for the long term. The Board will continue to borrow from the National Loans Fund and other sources to secure the external finance needed for investment.