§ Mr. McLoughlinTo ask the Secretary of State for Energy if he will make a statement on British Coal's external financing limit for 1987–88.
§ Mr. Michael SpicerBritish Coal's external financing limit for 1987–88 is to be increased from £727 million to £842 million. This increase reflects price reductions of over £300 million conceded by British Coal in current difficult market conditions. This is partly offset by projected operating cost savings of over £200 million compared with the assumptions underlying the original limit of £727 million. British Coal remain committed to achieving break-even in 1988–89.
This increase is being charged to the reserve and will not add to the public expenditure planning total.