HC Deb 08 December 1994 vol 251 cc328-9W
Mr. Harvey

To ask the Chancellor of the Exchequer what estimate he has made of the impact of including BNFL within the public sector borrowing requirement on BNFL's ability to raise capital and on the manner in which such capital is invested.

Mr. Aitken

No such estimate has been made. BNFL's external financing requirements will be subject to annual discussions between the company and the Government. BNFLs' inclusion on the PSBR statistics should not affect decisions on the allocation of funds to capital projects.

Mr. Harvey

To ask the Chancellor of the Exchequer if he will make it his policy that, following BNFL's inclusion within the public sector borrowing requirement, its payments to the Treasury will not be increased to a higher level than its dividend payments of recent years.

Mr. Aitken

BNFL's dividend payments are related to the company's profitability, according to a formula agreed between BNFL and the Government. There are no plans to change this formula.

Mr. Harvey

To ask the Chancellor of the Exchequer whom he consulted before the decision was made to include BNFL within the public service borrowing requirements; what advice they gave; and on what basis the decision was made.

Mr. Aitken

The decision to include BNFL within public sector statistics and hence score its borrowing against the PSBR was taken by the director of the Central Statistical Office, who is responsible, within the framework of international agreement and conventions, for the definitions and methodology of statistics covered by the CSO.