§ Mr. FraserTo ask the Chancellor of the Exchequer what was the total net external financing limit at current prices of Britain's nationalised industries in each year since 1974. [10919]
§ Mr. Geoffrey Robinson[holding answer 28 July 1997]: External financing limits were introduced in 1976. Outturn performance against an EFL is recorded as the external financing requirement. The total EFR for the nationalised industries in each year since 1976–77 in current prices is provided in the table.
345W
Total external financing requirements of nationalised industries in 1996–97 prices £ billion 1976–77 8.71 1977–78 4.84 1978–79 7.07 1977–80 6.89 1980–81 6.48 1981–82 4.61 1982–83 4.06 1983–84 4.12 1984–85 6.73 1985–86 2.78 1986–87 0.55 1987–88 0.29 1988–89 -0.64 1989–90 1.23 1990–91 4.22 1991–92 4.33 1992–93 4.83 1993–94 3.86 1994–95 1.05
Total external financing requirements of nationalized industries in 1996–97 prices £ billion 1995–96 -0.36 1996–97 0.48
§ Mr. BercowTo ask the Chancellor of the Exchequer what subsidy was paid to each of the nationalised industries between 1974 and their year of privatisation. [11344]
§ Mr. Robinson[holding answer 29 July 1997]: The external financing requirement of a nationalised industry has been used since its introduction in 1976 as the consistent measure of financial support an industry requires to supplement income from its trading activities. The EFR is a measure of the cash needed by the industry to fund investment and meet costs not covered by revenue. As such, it is only an indirect measure of subsidy. Information presented on this basis has been available since 19767–97. Table 3.11 of the "Public Expenditure Statistical Analyses 1997–98", Cm 3601, lists EFRs from 1978–79 and 1982–83 onwards. The EFRs for key nationalised industries from 1976–77, unless otherwise indicated, to privatisation are as follows:
£ billion British Coal 16.2 British Gas 1-3.6 BNOC 0 British Steel 6.0 British Airways 0 British Rail 11.1 British Shipbuilders 1.3 British Telecommunications from 1981–82 1-1.0 Electricity, England, Wales and Scotland 1-3.8 Water, from 1978–79 2.2 1 A negative EFR represents a net benefit to the public finances.