Hansard

Nationalised Industries (Targets)

Volume 897: debated on Thursday 7 August 1975

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Mr. David Howell

asked the Chancellor of the Exchequer whether the Government have set targets for the profit or loss of each nationalised industry for the financial years 1975–76 and 1976–77; and, if so, what these targets are, in terms of £ millions.

Mr. Denzil Davies

Financial objectives in the form of a target rate of return on net assets apply to the following nationalised industries for the periods indicated:British Steel Corporation—8 per cent. 1973–74 to 1976–77.British Airports Authority—15½ per cent. 1973–74 to 1975–76.British Transport Docks Board—9 per cent. by the end of 1975.

The financial targets for the gas and electricity industries and the Post Office lapsed because of price restraint, but it is the intention that these industries should phase out their deficits so that no compensation for price restraint will be paid after 1975–76.

Mr. David Howell

asked the Chancellor of the Exchequer if he will publish figures of: (a) the loss or profit of each nationalised industry in the latest financial year and (b) the approximate reduction in

£ million
IndustryPeriodSurplus (Deficit)
National Coal Board………1974–75—(1)
Electricity (England and Wales)………1974–75(257·6) (2)
North of Scotland Hydro-Electric Board………1974–75(2·3) (2)
South of Scotland Electricity Board………1974–75(20·3) (2)
British Gas Corporation………1974–75(44·2) (2)
British Steel Corporation………1974–7589·3*
Post Office………1974–75(306·7) (2)
British Airways Board………1973–7443·8*
British Airports Authority………1974–758·4*
British Railways Board………1974—(3)
British Transport Docks Board………197412·1
British Waterways Board………1974—(4)
National Freight Corporation………1974(12·3)
National Bus Company………1974(12·3) (5)
Scottish Transport Group………1974(7·4) (5)(6)
* Before taxation.
(1) After taking account of social and operational grants totalling £68·2 million.(2) The Government intends to make Orders for the payment of compensation for price restraint in respect of 1974–75 as follows:
£ million
Electricity Industry (England and Wales)……………257·6
North of Scotland Hydro-Electric Board……………2·3
South of Scotland Electricity Board……………20·3
British Gas Corporation……………42·3
Post Office……………307·0
(3) After taking account of Government grants totalling £389 million.(4) After taking account of grant-in-aid of £5·3 million.(5) The National Bus Company and Scottish Transport Group receive bus fuel tax grant and local authority revenue subsidies, both of which are substantial.(6) After taking account of £0·73 million grant for David MacBrayne shipping services.