§ Mr. Gryllsasked the Secretary of State for Industry whether the £297 million granted by him to BL for its 1980 plan was used exclusively for the comprehensive capital investment plan.
§ Mr. David MitchellFunding for BL from the Government is provided to cover the company's general financing requirements, and is not hypothecated to one specific use. BL has during 1980 carried out virtually all of the capital investment programme which it forecast in its 1980 plan, though at a lower cost than the £331 million expected.
§ Mr. Gryllsasked the Secretary of State for Industry how many and what type of shares the National Enterprise Board holds in BL; how much public money in total has been paid to BL since 1 January 1975; and how much has been paid in dividends on this money since this date.
§ Mr. David MitchellThe NEB holds 2,343,404,996 ordinary shares of 50p each in BL. Public funding made available in respect of BL since the rescue in 1975, including £25 million allocated to the NEB—but not yet all drawn—for its shareholding in Wholesale Vehicle Finance Ltd., an NEB subsidiary which provides finance to BL dealers for their stocks, amounts to £1,075 million. In addition, £200 million was provided to BL in 1978 as part of the initial rescue of the company, and £46 million was required to purchase the majority of the privately owned shares in BL.. No dividends have been paid to date on the £1,250 million equity funding provided to BL.
§ Mr. Gryllsasked the Secretary of State for Industry how the £317 million loss incurred by BL in the 12 months ended June 1980 has been funded.
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§ Mr. David MitchellA company's finances, whether it is making a profit or a loss, can be provided from many sources. These include equity, loans, depreciation and transfer from reserves amongst others. It is not, therefore, possible to say exactly how a loss is funded. My hon. Friend knows that in the six months up to June 1980 BL had received £225 million from the Government in the form of equity subscribed by the NEB. Prior to that, in the last six months of 1979, BL received £75 million in the same form. During the 12-month period in question the company also made use as necessary of private sector loan facilities.
§ Mr. Gryllsasked the Secretary of State for Industry if he will give the comparative productivity figures in vehicles per man year for BL for each of the years 1972 to 1979 and the 12 months ended June 1980; and if he will base his decision for future funding of BL on productivity results.
§ Mr. David MitchellBecause of organisational changes it is difficult to compare production figures one year with the next. Nor are comparative figures available for the whole period from 1972 to the end of June 1980. Those since public ownership in 1976 to the end of September 1979, which are the only ones available, are as follows:
1976 6.3 1977 5.8 1978 5.5 1979* 5.2 *To end September. Productivity will be one of the many factors which the Government will take into consideration in deciding on future funding for BL.