§ 56. Mr. Critchleyasked the Secretary of State for the Home Department, pursuant to the Under-Secretary of State's announcement in the Official Report, 29 January, column 1198, when he proposes to apply for a supplementary Royal Charter for the BBC; and if he will give 256W a firm undertaking to give the House the opportunity of debating this matter.
§ Mr. Merlyn ReesPreparations for the proposed supplemental charter to provide for the increase in the BBC's borrowing powers are in hand. The arrangements for any debate are matters for my right hon. Friend the Leader of the House.
§ Mr. Critchleyasked the Secretary of State for the Home Department how much interest charge the BBC will incur when it has drawn upon (a) one half and (b) the whole of its additional borrowing powers; and by how much the television licence fee will eventually have to be increased to pay for the cost of these charges.
§ Mr. Merlyn ReesIt is proposed to increase the BBC's borrowing limit from £30 million to £100 million, but it is not possible to say at what rate or to what level or over what period the BBC may make use of the increased borrowing powers. If, however, the BBC were to draw on one half of these additional borrowing powers, its total deficit would amount to £65 million. Interest charges on this, if borrowed for a whole year, could amount to a little over £9 million at current rates of interest. To recoup this sum would require an increase of about 50p in the television licence fees. If the BBC were to draw on the whole of its additional borrowing powers, its deficit would amount to £100 million. Interest charges on this, if borrowed for a whole year, would amount to about £14 million and would require an increase of about 80p in the television licence fees.