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Nationalised Industries

Volume 164: debated on Monday 18 December 1989

The text on this page has been created from Hansard archive content, it may contain typographical errors.

To ask the Secretary of State for Trade and Industry what was the total net cost or contribution of the nationalised industries within his responsibility in the period of 1974 to 1979; and what was the net contribution of these industries in the period 1979 to the latest available year, taking account of both corporation tax and receipts from privatisation.

The way in which the expenditure plans and financing requirements of the nationalised industries was recorded changed in 1976–77 when the concept of an external financing requirement was introduced. Before that published figures concentrated on the capital requirements of the industries, whether or not they could be financed from internal resources or required Government or market funding. Figures for the two periods 1974–75 to 1978–79 and 1979–80 to 1987–88 are therefore not available on a comparable basis.The following figures show, for the nationalised industries for which the Secretary of State had responsibility in these periods, outturn capital expenditure for 1974–75 and for later years the net effect on the public expenditure totals, taking account of net privatisation receipts. Corporation tax payments do not affect the public expenditure total. Information on tax paid is available in the published report and accounts of the relevant nationalised industries and has not been included in the following totals.

For 1974–75 and 1975–76 outturn capital expenditure was £2,925 million.
For 1976–77 to 1978–79 the net effect was an addition of £2,616 million to the public expenditure total.
For 1979–80 to 1987–88, the last year for which outturn figures are available, the net effect was an addition of £591 million.

The industries covered by this answer are British Aerospace, British Shipbuilders, British Steel Corporation, Post Office (including Telecommunications and National Girobank until separation), British Telecom and Girobank, the receipts from the sale of shares in British Aerospace and British Telecom are included in the figures, but the sale of shares in British Steel took place after 1987–88.

Sources: White Papers for the Government's public expenditure plans for the period 1975 to 1988, Command numbers 6721–II, 7439, 7841, 8175, 8494, 1 and II, 8789 II, 9143 II, 9428 II, 9702 II, Cm. 56 II, Cm. 288 I, Cm. 605, Cm. 621.

To ask the Secretary of State for Trade and Industry what was the net cost or contribution of the nationalised industries within his responsibility in 1978–79.

The outturn financing requirements of all nationalised industries in 1978–79 were published in the "Government's Expenditure Plans 1980–81 to 1983–84", Cm. 7841, in March 1980. The net effect on the public expenditure totals of the requirements for British Shipbuilders, British Aerospace, British Steel Corporation, and the Post Office (including figures for Telecommunications and Girobank) was an addition of £845 million.

To ask the Secretary of State for Trade and Industry what was the net cost or contribution of those industries within his responsibility which are still nationalised or companies which were state owned in 1988, or the last available year.

The latest available outturn figures for contributions to the public expenditure total for nationalised industries and wholly Government-owned companies within the responsibility of the Secretary of State for Trade and Industry were published in January 1989 in chapters 5 and 21 of "The Government's Expenditure Plans 1989–90 to 1991–92" Cm. 605 and 621. The net effect in 1987–88 of British Shipbuilders, British Steel Corporation, Post Office and Girobank taken together was a reduction of £271 million.