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Mr. Page
To ask the Secretary of State for Trade and Industry if he will list for the five years prior to privatisation the loss or profit of Girobank; and if he will list any grants or loans made over the same period.
Mr. Redwood
Girobank was sold by the Post Office to the Alliance and Leicester building society on 2 July 1990. Profit, and loans made to it, in the five years before this were as follows:
| £ million | |||||
| Year to end March | 1986 | 1987 | 1988 | 1989 | 1990 |
| Operating profit | 19·4 | 23·1 | 23·5 | 21·6 | 30·2 |
| Subordinated loan capital from the PO | 19·0 | 19·0 | 29·0 | 39·0 | 39·0 |
Source: Girobank PLC Report and Accounts 1989–90.
Operating profit is on an historical cost basis before tax and before interest payable on subordinated loan capital.