§ Mr. Gerald Bowdenasked the Secretary of State for Trade and Industry if he will make a statement on the external finance limit for British Shipbuilders for 1986–87.
§ Mr. Peter MorrisonThe external financing limit for British Shipbuilders for 1986–87 is being increased by £57 million from £73 million to £130 million. This increase primarily reflects the additional costs to British Shipbuilders this year of its restructuring programme announced on 14 May at column 705, including the cost of establishing British Shipbuilders Enterprise Ltd. The increase also reflects the fact that significant payments for vessels under construction will not now be received until 1987–88. Provision for this additional funding in the form of public dividend capital is subject to parliamentary approval of the necessary Supplementary Estimate. The increase in the EFL will be charged to the Reserve net of some offsetting savings on existing programmes. Therefore there is no increase in the public expenditure planning total.