§ Mr. Skeetasked the Secretary of State for Energy, of the total funds made available to the National Coal Board during the past 10 years, what is the percentage derived from the following sources (a) self-financing, (b) the national loan fund, (c) the Department of Energy, (d) the European Commission, (e) the European Investment Bank and (f) other.
§ Mr. John MooreSince the NCB was subject to a capital reconstruction in 1973, it would be misleading to include figures for earlier years in this reply.
The sources of funds available to the NCB and its subsidiaries between April 1973 and March 1979 were as follows:
572W
Percentage Internal resources 4 National loans fund 21 Loans from the European Commission 23½ Loans from European Investment Bank ½ Government Social Grants 12 Other Government grants 23 Other 16 Note
(i) this analysis includes funds applied for all purposes, including working capital. The " self-financing ratio " given in the board's annual accounts, shows how much of the board's capital expenditure is internally financed;(ii) " internal resources " are profits, depreciation, and proceeds of the sale of fixed assets;(iii) " Government social grants " are the Government contribution to the board's social costs—pensions for miners who retire early, costs of pit closures, and concessionary coal under Redundant Mineworkers' Payments Scheme—and the Government contribution to the deficiency in the Mineworkers' Pension Scheme in respect of pre-1975 pensioners. The Government's contribution of £100 million to the pneumoconiosis compensation scheme in 1974 to 1976 is not included, since it did not appear in the board's profit and loss account;(iv) other Government grants are other grants under the Coal Industry acts and a special deficit grant of £131 million in respect of 1973–74;(v) " Other " includes borrowing by subsidiaries, and foreign loans other than those from the European Commission or the European Investment Bank.
§ Mr. Skeetasked the Secretary of State for Energy, of the £545 million invested by the National Coal Board in 1979–80, what is the self-financing ratio and percentage planned for succeeding years when investment is expected to reach £600 million 1980–81, £601 million 1981–82, £608 million 1982–83 and £605 million 1983–84.
§ Mr. John MooreThe board's accounts for 1979–80 have not yet been published but are expected to show internal resources—profit, depreciation, and sales of fixed assets, but excluding Government grants—as minus 14 per cent. of total funds. Government grants towards the board's social costs came to 11 per cent. of total funds. It is too soon to give figures for individual future years, but, on present estimate, with the success of the Government's financial strategy for coal, the board's internal resources in 1983–84 might be in the region of 35 to 40 per cent. of total funds.