HC Deb 02 March 1978 vol 945 cc336-8W
Mr. Grocott

asked the Secretary of State for Trade which aspect of those nationalised industries for which he is the sponsoring Minister is constrained by cash limits; what is the amount of cash limit imposed in each case; what is the performance of the industries against these limits; what proportion was used to cover up operating losses; and what proportion was used to finance investment.

Mr. Clinton Davis

The whole of the operations of British Airways and the British Airports Authority are subject to cash limits. For the current financial year, British Airways' limit on net external financing is £88 million—including £17 million to cover the dividend payment and advance corporation tax for the year 1976–77. The corresponding figure for the British Airports Authority is £4 million. Both nationalised industries use all of these funds to finance investment, and both have stated their intention not to exceed the limits.

Mr. Grocott

asked the Secretary of Stale for Trade if he will list for each of the nationalised industries for which he is responsible for each year since 1972 the source of funds distinguishing between (a) borrowing from the Government, (b) borrowing from overseas, (c) subsidies from Government grants and compensation and (d) internal financing.

Mr. Clinton Davis

The information requested by the hon. Member is set out in the table below:

THE SOURCES OF FUNDS OF BRITISH AIRWAYS AND THE BRITISH AIRPORTS AUTHORITY FINANCIAL YEARS 1972–73 TO 1976–77
£ million
1972–73 1973–74 1974–75 1975–76 1976–77
BA BAA BA BAA BA BAA BA BAA BA BAA
Public dividend capital 60.0 11.3 80.0 63.7 10.0
Borrowing from the National Loans Fund 64.0 8.0
Foreign borrowing 10.4 22.6 16.5 19.5 49.8
Lease finance 15.8
Government grants 2.3 3.2 8.8 8.9
Internal financing 62.5 12.5 109.0 16.7 77.4 20.7 60.3 25.4 149.9 33.5
TOTAL FUNDS 132.9 12.5 142.9 19.0 173.9 23.9 207.5 42.2 225.5 42.4