§ Mr. ArbuthnotTo ask the Secretary of State for Energy whether the future external financing requirements of British Coal have yet been determined, as indicated in paragraph 93 of Cm. 1005.
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§ Mr. BaldryBritish Coal has reviewed its external financing requirement (EFR) for 1990–91 in the light of the final outcome of its negotiations with the electricity supply industry, and my right hon. Friend the Secretary of State has agreed to its proposal that its external financing limit (EFL) for 1990–91 should be set at £905 million. This is consistent with British Coal achieving profitability this year. Within this figure my right hon. Friend has also agreed that the corporation's capital allocation for 1990–91 should be £445 million. This compares with the provisional EFL and capital allocation figures of £385 million and £490 million respectively shown in Cm. 1005. This increase in the EFL will be charged to the reserve and will not therefore add to the planned total of public expenditure. A supplementary estimate for restructuring grant, deficiency grant, and loans on vote in order to finance this increased EFR will be presented shortly. The EFRs and capital allocations for later years remain under review.