HC Deb 02 March 1978 vol 945 cc354-8W
Mr. Grocott

asked the Chancellor of the Exchequer if he will list for each year since 1972 the subsidies paid to major public corporations, other than for price restraint sharing; and if he will list the corporation and the subsidy and, further, the nature and purpose of the subsidy.

NATIONALISED INDUSTRY CENTRAL GOVERNMENT GRANTS*
£ million
1971–72 1972–73 1973–74 1974–75 1975–76 1976–77
National Coal Board
Grants in connection with pit closures 9.3 9.1 17.0 9.1 9.4 13.3
Payments towards cost of premature pensions for redundant mine workers 0.8 1.2 2.5 3.3 3.1 2.8
Deficit grant 100.0 2.5 128.2
Payments for reimbursement of contributions towards in creased pensions 8.3 8.3 8.4
Operational grants 109.0 3.1 41.0 11.1
Contributions towards pneumoconiosis compensation 60.0 40.0
Contribution towards deficiency in mineworkers' pension scheme 9.6 28.2
Electricity Council and Boards
Compensation for additional coal burn 0.8
Compensation for costs of additional stocking (CEGB) 19.9 5.0
Compensation for accelerating capital expenditure to promote employment 0.7 4.4 9.6 9.2
Scottish Electricity Boards
Compensation for costs of additional stocking 0.8
Compensation for accelerating capital expenditure to promote employment 0.1 1.6 0.4
Compensation for losses on BACO Smelter account 57.0
British Gas Corporation
Compensation for accelerating capital expenditure to promote employment 0.4 0.2
British Airports Authority
Capital grants for development of Edinburgh and Aberdeen Airports 0.6 3.6 4.8 9.0
British Railways Board
Grants towards costs of un-remunerative railways services† 65.1 74.7 88.7 146.8 6.1 1.0
Surplus track grants 7.5 8.5 1.8 0.5
Infrastructure grants 1.2 11.1 17.0 22.4 8.0 8.8
Research and development 1.6 1.4 1.8 1.8 1.7 2.2
Grants under Transport (Grants) Act 1972 27.0
Cash flow shortfall grant 42.0 95.0 182.0
Pension fund deposit grant 34.7 34.7 34.7
Compensation for public service obligation 78.7 291.9 306.1
Grant for funding of pensions obligations 12.1 52.7 65.7
Grant for standardisation of Accounts (EEC regulation 1192/69) 1.6 9.1 9.6
Interest of pension fund deposits 13.9 8.4
Freight deficit grant 81.0 23.0
British Waterways Board
Grant in aid 2.9 3.1 3.8 5.7 8.6 10.3
Grant towards capital expenditure on bridges 0.7 1.2 1.3 1.3 1.5 1.7

Mr. Joel Barnett

, pursuant to his reply [Official Report, 27th February 1978; Vol. 945, c. 82–3], gave the following information:

£ million
1971–72 1972–73 1973–74 1974–75 1975–76 1976–77
National Freight Corporation
Freight sundries grant 8.0 3.7 1.6
Cash flow deficit 8.0 30.0
National Bus Company
Rural bus grants§ 0.2 0.3 0.3
New bus grants§ 3.8 5.7 6.1 8.0 11.9 14.1
Grants under Transport (Grants) Act 1972 7.0
Scottish Transport Group
Grant towards the deficit of David MacBrayne Ltd. 0.6 0.7 0.6 0.7 1.1 1.1
Rural bus and ferry grants§ 0.2 0.5 0.8 0.9 0.3
New bus grants§ 0.5 1.0 1.1 1.3 2.5 3.1
Capital grants towards provision of ferry terminals 0.1 0.1 0.3
Grant towards the deficit of Caledonian MacBrayne 2.7 2.4
* Excluding grants available to industry as a whole, except where otherwise indicated, and compensation for price restraint paid under the Statutory Corporations (Financial Provisions) Act 1974 and 1975. Amounts are shown under the year in which payment was made.
† Including payments to passenger transport executives in respect of their payments for British Rail services.
‡Excluding grants towards bus fuel duty. Since this table covers specific central government grants only, local authority subsidies to bus services are also excluded, except for the central government contribution to local authority subsidies to rural bus services.
§ These grants are also available to other operators in the industry.

Mr. Grocott

asked the Chancellor of the Exchequer if he will list for each year since 1972 the payment to each of the major public corporations for price restraint and indicate for each of these:

PUBLIC CORPORATIONS: COMPENSATION FOR PRICE RESTRAINT £ million
1971–72 1972–73 1973–74 1974–75 1975–76 1976–77
Electricity Industry (England and Wales)
Compensation for price restraint*:
1970–73 92.3
1973–74 176.3
1974–75 257.6
1975–76 43.4 13.1
Operating profit (loss)† 258.4 298.7 162.7 127.9 433.0 636.5
Revenue account surplus (defcit)‡ (23.3) 2.0 (176.3) (257.6) 8.5 206.5
Electricity Industry (Scotland)
Compensation for price restraint*:
1970–73 10.4
1973–74 12.8
1974–75 22.6
Operating profit (loss)† 41.8 49.9 50.0 51.0 89.2 124.1
Revenue account surplus (deficit)‡ (6.2) (3.1) (12.8) (22.6) 2.8 28.2
British Gas Corporation
Compensation for price restraint*:
1970–73 33.4
1973–74 41.5
1974–75 23.5 5.4
Operating profit (loss)† 139.9 157.9 114.4 118.7 201.9 218.2
Revenue account surplus (deficit)‡ 15.1 5.7 (41.3) (44.2) 25.1 31.5
Post office
Compensation for price restraint*:
1972–73 9.7
1973–74 123.6
1974–75 307.0
1975–76 15.0 —5.8
Operating profit (loss)† 193.4 123.1 95.7 (6.3) 485.5 624.3
Revenue account surplus (deficit)‡ 36.1 (64.1) (128.1) (306.7) 147.5 289.3
* Compensation paid under the Statutory Corporations (Financial Provisions) Acts 1974 and 1975. Amounts are shown under the years in which payment was made. The periods in which compensation accrued are shown in brackets.
† After depreciation. Before interest and compensation for price restraint receivable.
‡ After depreciation and interest. Before compensation for price restraint receivable.

(a) the operating loss before interest payments, and (b) deficit on revenue account.

Mr. Joel Barnett,

pursuant to his reply [Official Report, 27th February 1978; Vol.945, c.83], gave the following information: