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National Giro (Capital Structure)

Volume 955: debated on Thursday 3 August 1978

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asked the Secretary of State for Industry if he will make a statement about National Giro bank's capital structure.

Since the passing of the Post Office (Banking Services) Act 1976 the National Girobank has made sound progress. It has conducted its business on a profitable basis and has met its financial target of 12½ per cent. annual average return on public dividend capital plus retained profits over the period 1975–76 to 1977–78. Its business over this period has grown substantially and it is providing a wide range of banking services. As envisaged in the White Paper "The Development of National Giro" (Cmnd. 6344) it is now subject to full prudential supervision by the monetary authorities. In 1976 no further advances of capital were envisaged but the situation has changed with the growth and development of the business.We have, therefore concluded that National Girobank's capital base now needs strengthening to match this growth and my right hon. Friend proposes to

planning region in England and Wales for each year since 1974–75; and how many in each case were granted.

The following table shows the number of schemes of 15,000 sq. ft. and over for which applications for industrial development certificates were decided during the financial years 1974–75 to 1977–78.advance £4 million of public dividend capital and £4 million of National Loan Fund to the Post Office to meet this need. This will not affect the public section borrowing requirement since the Post Office has agreed to increase its loan repayments by an equivalent amount. My right hon. Friend shall be seeking the approval of the House for a supplementary estimate in due course.