§ Mr. Grocottasked the Secretary of State for Energy 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. BennCash limits are applied to the net increase in nationalised industries' external financing—net borrowing, issues of public dividend capital, grants and leasing. Of the nationalised industries sponsored by the Secretary of State for Energy, the British National Oil Corporation is not subject to a cash limit—for the reasons set out in Cmnd. 7049—but for the other industries cash limits in respect of 1977–78 were set in the Financial Statement and Budget Report 1977–78 and are shown below:
365W
£ million National Coal Board 376 Electricity (England and Wales) 150 British Gas Corporation -268 Each industry is currently forecast to remain within its cash limit and Cmnd. 7049 (Table 3.2) presented estimates of outturn for the year. Each industry is operating profitably on revenue account and thus all external finance is needed to meet capital requirements.
§ Mr. Grocottasked the Secretary of State for Energy if he will list for each of the nationalised industries for which he is responsible for each year since 1972
NATIONAL COAL BOARD 1972–73 1973–74 1974–75 1975–76 1976–77 Net borrowing from the National Loand Fund (NLF) 172.7 21.3 —26.6 101.9 7.5 Foreign currency borrowing — 26.6 34.7 122.3 184.3 Other domestic borrowing (net) 4.2 —10.5 —22.8 4.4 52.4 Grants* 465.0 260.8 68.2 32.4 54.5 Internal resources † 76.7 —62.9 6.1 143.5 118.7 TOTAL 269.0 104.6 59.6 404.5 417.4 * These figures include the capital write-off of £449.6 million in 1973 and the special grant of £130.7 million paid in respect of 1973–74. However grants of £60.0 million in 1974–75 and £40.0 million in 1975–76 paid in respect of pneumoconiosis compensation and not credited to the Board's operating results are excluded. † Internal resources are shown before allowing for the 1973 capital write-off and the 1973–74 special grant; the total is shown after making such an adjustment.
ELECTRICITY INDUSTRY (ENGLAND AND WALES) 1972–73 1973–74 1974–75 1975–76 1976–77 Net NLF borrowing 81.1 —156.1 207.2 95.4 —319.8 British Electricity Stock — —294.4 — — —88.3 Foreign currency borrowing (redemption) 40.5 570.6 114.1 98.2 527.4 Temporary borrowing, etc. (net) —20.3 0.9 92.5 —122.4 —78.8 Grants 14.5 270.3 263.7 67.7 10.8 Internal resources 334.5 175.7 111.6 425.1 641.9 TOTAL 450.3 567.0 789.1 564.0 693.2
BRITISH GAS CORPORATION 1972–73 1973–74 1974–75 1975–76 1976–77 Net NLF borrowing 172.9 —38.0 68.0 —77.0 —136.0 British Gas Stock (redemption) —179.1 — — — — Foreign currency borrowing 10.5 120.1 2.2 168.5 21.4 Temporary borrowing, etc. (net) 28.4 —61.9 13.4 68.3 —111.2 Grants — 74.9 42.4 —13.4 — Internal resources 160.3 159.3 214.8 312.9 545.3 TOTAL 193.0 254.4 340.8 459.3 319.5 366W
BRITISH NATIONAL OIL CORPORATION The Corporation prepares its account on a calendar year basis. For 1976, the Corporation's first year of operation and the only year for which accounts have been published, information is as follows:— Funds originating from the NLF 327.7 Funds originating from royalties and licence fee revenues paid into the National Oil Account 30.4 Funds from revenue operations after interest paid —11.0 There were no foreign currency borrowings by the Corporation in 1976. 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. BennThe information asked for is given below. All figures are expressed in £ million. Figures for grants exclude those available to industry as a whole, such as regional development grants.