HC Deb 07 December 1981 vol 14 cc297-8W
37. Mr. Bowen Wells

asked the Secretary of State for Industry what progress has been made towards providing British Telecommunications with access to private sector sources of finance.

Mr. Kenneth Baker

We are considering British Telecom's proposals for a profit-linked bond sympathetically and I would hope to make a statement about this in the not too distant future.

Mrs. Knight

asked the Secretary of State for Industry if he will publish in the Official Report a breakdown of expenditure within the £1,500 million investment programme of British Telecom, so far as this involves public expenditure.

Mr. Wakeham

British Telecom's net additions to fixed assets in 1980–81, after taking account of assets written out during the year and certain other adjustments, was £1,554 million. The breakdown of gross additions to fixed assets, given in statement A4 in the British Telecom accounts, is as follows: (figures in millions):

Number
Land and buildings 134
Inland cables and transmission equipment 329
Inland telephones and related equipment 369
Inland exchange equipment 594

Number
Inland telex and other miscellaneous equipment 93
International cables and equipment 31
Computers, furniture and office machines 15
Motor vehicles 9
Investment in communications satellites 11
Increase in materials awaiting installation 41

After allowing for distortions to cash flow from an industrial dispute affecting billing, British Telecom financed about 85 per cent. of its capital expenditure from internal resources during the year. Its borrowings from public sources are not allocated to specific sectors of expenditure.