Written Answers
Public Investment In Nationalised Industries
asked Her Majesty's Government:How much public money has been provided for investment in each of the nationalised industries in the years 1979–80 and 1980–81.
Nationalised industries finance their capital requirements from internally generated resources as well as by borrowing; and it is only their external finance which counts as public expenditure. The following table shows the external financial requirements, of which grants and net borrowing from the National Loans Fund are charged to Government accounts; the other components are included in the public expenditure planning totals. Corresponding figures for capital requirements and internal resources in the two years in question are set out in Table 3.3 of Cmnd. 8175 and Table 17A of the 1981–82 Financial Statement and Budget Report.
FINANCING OF CAPITAL REQUIREMENTS OF THE NATIONALISED INDUSTRIES 1979–80
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| Table 3.3 | £ million at outturn prices | |||||||||||||||||
| Capital requirements(1) | Financed by(1) | |||||||||||||||||
| Internal resources(12) | External finance | |||||||||||||||||
| Fixed assets in the UK | Other | Total | Current cost operating profit | Interest, dividends and tax (2) | Depreciation etc (3) | Other receipts and payments | Total | Government grants (4) | Issues of PDC (5) | Net borrowing from the NLF | Net overseas borrowing | Net market borrowing | Short-term borrowing and leasing | Total(6) | ||||
| National Coal Board | … | … | … | 665 | -212 | 453 | -327 | -179 | 276 | 32 | -198 | 244 | — | 184 | 128 | 1 | 94 | 651 |
| Electricity (England and Wales) | … | … | … | 834 | 100 | 934 | 514 | -482 | 629 | 84 | 745 | 5 | — | 837 | -340 | -483 | 170 | 189 |
| North of Scotland Hydro-Electric Board | … | … | 46 | 40 | 86 | 13 | -51 | 60 | 5 | 27 | 11 | — | 13 | 8 | -15 | 42 | 59 | |
| South of Scotland Electricity Board | … | … | … | 65 | 59 | 124 | -16 | -66 | 144 | 7 | 69 | — | — | 67 | 45 | -31 | -26 | 55 |
| British Gas Corporation | … | … | … | 402 | 74 | 476 | 466 | -40 | 456 | 41 | 923 | — | — | -120 | -90 | -205 | -32 | -447 |
| British National Oil Corporation | … | … | … | 218 | 2 | 220 | 175 | -40 | 112 | — | 247(7) | — | — | 84(8) | -108 | -4 | 1 | -27 |
| British Steel Corporation | … | … | … | 289 | -275(9) | 14 | -561 | -196 | 200 | -8 | -565 | — | 905 | -209 | -34 | — | -83 | 579(9) |
| Post Office | … | … | … | 1,284 | 194(10) | 1,478 | 755 | -527 | 906 | 104 | 1,238 | — | — | -184 | -62 | — | 486 | 240(10) |
| British Airways Board | … | … | … | 289 | -51 | 238 | -9 | -58 | 133 | 1 | 67 | — | 10 | -6 | 149 | -8 | 26 | 171 |
| British Airports Authority | … | … | … | 54 | -6 | 48 | 6 | -13 | 51 | 4 | 48 | 1 | — | -1 | — | — | — | — |
| British Railways Board | … | … | … | 381 | -196 | 185 | -725 | -62 | 166 | 92 | -529 | 687 | — | 26 | 19 | -1 | -17 | 714 |
| British Transport Docks Board | … | … | … | 13 | 2 | 16 | 15 | -12 | 17 | 2 | 22 | — | — | — | — | — | -7 | -7 |
| British Waterways Board | … | … | … | 4 | — | 4 | -22 | -1 | 1 | — | -22 | 23 | — | 3 | — | — | — | 26 |
| National Freight Company Ltd. | … | … | … | 35 | 5 | 40 | -2 | -12 | 16 | 10 | 12 | 11 | — | — | — | — | 17 | 28 |
| National Bus Company | … | … | … | 60 | 1 | 61 | -42 | -15 | 34 | 4 | -19 | 60 | — | 12 | — | — | 8 | 80 |
| Scottish Transport Group | … | … | … | 16 | -1 | 15 | -9 | -1 | 12 | 1 | 3 | 14 | — | 2 | — | -1 | -3 | 12 |
| British Aerospace | … | … | … | 42 | 67 | 109 | (11) | 4 | (11) | (tt) | 56 | — | 33 | 20 | — | — | — | — |
| British Shipbuilders | … | … | … | 18 | 21 | 39 | (11) | -13 | (11) | (tt) | -197 | 31 | 236 | -55 | — | — | 24 | 236 |
| Total | … | … | … | 4,715 | -175 | 4,540 | -1,764 | 1,927 | 1,087 | 1,184 | 673 | -285 | -747 | 701 | 2,613 | |||
| (1) The capital value of leased assets is included. | ||||||||||||||||||
| (2) The total figure for interest alone is £—1,691 million. | ||||||||||||||||||
| (3) Including cost of sales adjustment, monetary working capital adjustment and other items not involving movement of funds. | ||||||||||||||||||
| (4) Shows subsidies and capital grants received in the year. | ||||||||||||||||||
| (5) Including issues under Section 18 of the Iron and Steel Act 1975. | ||||||||||||||||||
| (6) Except in the case of BNOC, the figure shown against each industry is the outturn against its external financing limit for the year. | ||||||||||||||||||
| (7) Excludes the proceeds of advance payments for oil. | ||||||||||||||||||
| (8) Includes BNOC's net payments into the National Oil Account. | ||||||||||||||||||
| (9)The BSC figures exclude payments amounting to £121 million carried forward into 1980–81 in respect of liabilities which the Corporation was unable to meet during the steel strike. | ||||||||||||||||||
| (10) The PO figures take account of the effect of the billing dispute (£345 million). | ||||||||||||||||||
| (11) Current cost figures not available. | ||||||||||||||||||
| (12) The current cost breakdown of internal resources in general reflects broad adjustments to historic cost data. | ||||||||||||||||||
FINANCING OF CAPITAL REQUIREMENTS OF THE NATIONALISED INDUSTRIES
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A. 1980–81 Estimated Outturn(1)
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| Table 17 | £ million | ||||||||||||
| Capital requirements(2) | Financed by(3) | ||||||||||||
| Internal resources(t) | External finance | ||||||||||||
| Fixed assets in the UK | Other | Total | Current cost operating profit | Interest, dividends and tax (4) | Depreciation etc.(5) | Other receipts and payments | Total | Government grants(6) | Net borrowing, issues of PDC(7) and leasing | Total(8) | |||
| National Coal Board | … | … | 800 | -45 | 755 | -268 | -257 | 433 | 15 | -77 | 251 | 581 | 832 |
| Electricity (England and Wales) | … | 963 | 339 | 1,302 | 233 | -568 | 1,234 | 228 | 1,127 | 5 | 170 | 175 | |
| North of Scotland Hydro-Electric Board | 41 | 30 | 71 | 39 | -61 | 47 | 4 | 29 | 16 | 26 | 42 | ||
| South of Scotland Electricity Board | … | 134 | 15 | 149 | -18 | -79 | 157 | 31 | 91 | — | 58 | 58 | |
| British Gas Corporation | … | … | 523 | 141 | 664 | 436 | 8 | 444 | 176 | 1,064 | — | -400 | -400 |
| British National Oil Corporation | … | 278 | -23 | 255 | 298 | -14 | 168 | 8 | 460(9) | — | -205(10) | -205 | |
| British Steel Corporation | … | … | 175 | 53 | 228 | -712 | -179 | 298 | -300 | -893 | — | 1,121 | 1,121 |
| Post Office | … | … | 1,613 | -220 | 1,393 | 807 | -529 | 1,237 | 15 | 1,530 | — | -137 | -137 |
| British Airways Board | … | … | 270 | 6 | 276 | -128 | -76 | 160 | 16 | -28 | — | 304 | 304 |
| British Airports Authority | … | … | 85 | 6 | 91 | 14 | -13 | 68 | 4 | 73 | — | 18(11) | 18 |
| British Railways Board | … | … | 342 | -130 | 212 | -818 | -74 | 197 | 117 | -578 | 673 | 117 | 790 |
| British Transport Docks Board | … | … | 10 | 1 | 11 | 7 | -9 | 19 | 4 | 21 | — | -10 | -10 |
| British Waterways Board | … | … | 7 | — | 7 | -24 | -2 | 1 | 2 | -23 | 26 | 4 | 30 |
| National Freight Company Ltd. | … | 36 | -1 | 35 | -5 | -11 | 23 | 17 | 24 | 6 | 5 | 11 | |
| National Bus Company | … | … | 64 | -1 | 63 | -55 | -18 | 41 | 10 | -22 | 66 | 19 | 85 |
| Scottish Transport Group | … | … | 16 | -1 | 15 | -10 | -1 | 13 | 1 | 3 | 21 | -9 | 12 |
| British Shipbuilders | … | … | 13 | 16 | 29 | (12) | -5 | (12) | (12) | -136 | 42 | 123 | 165 |
| Total | … | … | 5,370 | 186 | 5,556 | -1,888 | 2,665 | 1,106 | 1,785(13) | 2,891 | |||
| (1) No figures are included for British Aerospace. The sale to the public of shares in a successor company took place in February 1981, leaving the Government holding 48·4 per cent. | |||||||||||||
| (2) The capital value of leased assets is included. | |||||||||||||
| (3) The current cost breakdown of internal resources in general reflects broad adjustments to historic cost data. | |||||||||||||
| (4) The total figure for interest alone is -£1,856million. | |||||||||||||
| (5) Including cost of sales adjustment, monetary working capital adjustment and other items not involving the movement of funds. | |||||||||||||
| (6) Shows subsidies and capital grants received during the year. | |||||||||||||
| (7) Including issues under Section 18 of the Iron and Steel Act 1975. | |||||||||||||
| (8) Except in the case of BNOC, the figure shown against each industry is the estimated outturn against its external financing limit for the year. | |||||||||||||
| (9) Excludes the proceeds of advance payments for oil. | |||||||||||||
| (10) Includes BNOC's net payments into the National Oil Account. | |||||||||||||
| (11) Includes £19 million from the redemption of local authority bonds. | |||||||||||||
| (12) Current cost figures not available. | |||||||||||||
| (13) Of which: Government loans | … | 780 |
| Issues of PDC (including issues under Section 18 of the Iron and Steel Act 1975) | … | 1,390 |
| Overseas borrowing | … | -139 |
| Market borrowing | … | -246 |
| Short term borrowing and leasing | … | — |
NATIONLISED INDUSTRIES' EXTERNAL FINANCING REQUIREMENTS
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| £ million | |||||||||||||||||||
| 1979–80 | 1980–81(Provisional) | ||||||||||||||||||
| Government grants (1) | Issues of PDC | NLF (net) | Overseas borrowing (net) | Market borrowing (net) | Short-term borrowing (net) | Leasing | Total | Government grants (1) | Issues of PDC | NLF (net) | Overseas borrowing (net) | Market borrowing (net) | Short-term borrowing (net) | Leasing | Total | ||||
| National Coal Board | … | … | … | 244 | — | 184 | 128 | 1 | 75 | 19 | 651 | 251 | — | 486 | 85 | — | — | 10 | 832 |
| Electricity (England and Wales) | … | … | … | 5 | — | 837 | -340 | -483 | 159 | 11 | 189 | 5 | — | 396 | -71 | — | -183 | 28 | 175 |
| North of Scotland Hydro-Electric Board | … | … | 11 | — | 13 | 8 | -15 | 40 | 2 | 59 | 16 | — | 147 | -64 | -30 | -28 | 1 | 42 | |
| South of Scotland Electricity Board | … | … | — | — | 67 | 45 | -31 | -26 | — | 55 | — | — | -34 | -4 | — | 92 | 4 | 58 | |
| British Gas Corporation | … | … | … | — | — | -120 | -90 | -205 | -57 | 25 | -447 | — | — | — | -98 | -204 | -99 | 1 | -400 |
| British National Oil Corporation | … | … | — | — | 84(2) | -108 | -4 | 1 | — | -27 | — | — | -127(2) | -76 | -3 | — | 1 | -205 | |
| British Steel Corporation | … | … | … | — | 905(3) | -209 | -34 | — | -93 | 10 | 579 | — | 1,223(3) | -50 | -106 | — | 54 | — | 1,121 |
| Post Office | … | … | … | — | — | -184 | -62 | — | 433 | 53 | 240 | — | — | 10 | -94 | — | 95 | 42 | -137 |
| British Airways Board | … | … | … | — | 10 | -6 | 149 | -8 | 2 | 24 | 171 | — | 10 | -6 | 309 | -9 | — | — | 304 |
| British Airports Authority | … | … | … | 1 | — | -1 | — | — | — | — | — | — | — | -1 | — | — | 19(4) | — | 18 |
| British Railways Board | … | … | … | 687 | — | 26 | 19 | -1 | -38 | 21 | 714 | 673 | — | 77 | -18 | -1 | 37 | 22 | 790 |
| British Transport Docks Board | … | … | … | — | — | — | — | — | -7 | — | -7 | — | — | -8 | — | — | -2 | — | -10 |
| British Waterways Board | … | … | … | 23 | — | 3 | — | — | — | — | 26 | 26 | — | 4 | — | — | — | — | 30 |
| National Freight Company Ltd. | … | … | … | 11 | — | — | — | — | -4 | 21 | 28 | 6 | — | — | — | — | 3 | 2 | 11 |
| National Bus Company | … | … | … | 60 | — | 12 | — | — | — | 8 | 80 | 66 | — | 13 | — | — | — | 6 | 85 |
| Scottish Transport Group | … | … | … | 14 | — | 2 | — | -1 | -3 | — | 12 | 21 | — | -2 | — | -1 | -6 | — | 12 |
| British Aerospace(5) | … | … | … | — | 33 | 20 | — | — | — | — | 53 | ||||||||
| British Shipbuilders | … | … | … | 31 | 236 | -55 | — | — | 24 | — | 236 | 42 | 123 | — | — | — | — | — | 165 |
| (1) Shows capital grants and subsidies received in the year. | |||||||||||||||||||
| (2) Includes BNOC's net payment into the National Oil Account. | |||||||||||||||||||
| (3) Subscriptions of capital under Section 18 of the Iron and Steel Act 1975. | |||||||||||||||||||
| (4) Redemption of local authority bonds. | |||||||||||||||||||
| (5) No 1980–81 figures are included for BAe. The sale to the public of shares in a successor company took place in February 1981, leaving the Government holding 48·4 per cent. | |||||||||||||||||||
Imf Interim Committee: Chairmanship
asked Her Majesty's Government:Who has been appointed head of the Interim Committee of the International Monetary Fund, and on what grounds the nomination of Sir Geoffrey Howe was opposed by the representatives of developing countries.
The honourable Allan J. MacEachen, Deputy Prime Minister and Minister of Finance of Canada, became chairman of the Interim Committee on 21st May in Libreville. The second part of the question does not reflect what occurred. There were two nominations, there was no formal vote and a number of constituencies expressed no preference. Only one or two representatives gave reasons for supporting a nomination, and in no case did a representative advance argument against the other nomination.
Direct And Indirect Taxation
asked Her Majesty's Government:Whether they will provide the following information in addition to that given in their Written Answer of 14th May 1981, H. L. Deb. col. 681, for the same type of cases and for the same years, in respect of—
The figures requested are as follows:
| Earnings | Year | Income Tax and National Insurance Contributions as % of Gross Earnings | Total Indirect Taxes as % of Consumption Expenditure |
| 1978–79 | |||
| ⅔ average | 22·2 | 30·7 | |
| average | 28·0 | 27·5 | |
| 1½ x average | 31·8 | 25·1 | |
| 1979–80 | |||
| ⅔ average | 21·4 | 31·3 | |
| average | 26·4 | 28·9 | |
| 1½ x average | 29·8 | 27·0 | |
| 1980–81 | |||
| ⅔ average | 22·8 | 32·0 | |
| average | 27·4 | 29·3 | |
| 1½ x average | 30·5 | 27·4 | |
| 1981–82 | |||
| ⅔ average | 25·1 | 34·3 | |
| average | 29·3 | 31·2 | |
| 1½ x average | 32·1 | 28·8 |
Dwellings: Numbers And Conditions
asked Her Majesty's Government:In view of statements that there is a surplus of dwellings over households of 980,000 and that some 550,000 dwellings may be empty at any one time, whether they will state:
Following are the latest estimates for England:
| Dwellings (000) | Source | |
| (a) Unfit for human habitation | 794 | (1) |
| (b) Requiring repairs costing £1,000 or more | 2,236 | (1) |
| (c) Second homes | 120 | (2) |
| (d) Mainly let for holiday purposes | Not available | |
| (e) Non-permanent dwellings occupied at the Census | 71 | (3) |
| (f) "Blighted" by proposals for demolition with 5 years | Not available |
Sources (1) English House Conditions Survey 1976
(2) Audits of Great Britain—Regular Survey 1978
(3) Population Census 1971
Slaughterhouse Facilities: Eec Grants
asked Her Majesty's Government:What grants from EEC funds have been or are likely to be made available for extending facilities for ritual slaughter of animals in Britain and whether it is now their policy to regard the new industry of Islamic slaughter as falling within the exceptions to Section 36 of the Slaughterhouses Act 1974.
Investment projects for extending or improving facilities for the slaughtering of animals—including those which may involve ritual slaughter—in the United Kingdom have been able to compete for FEOGA grants under the Community's Marketing and Processing Grant Aid Scheme as set out in EEC Regulation No. 355/77. However, for such projects in England to be eligible they must also have been awarded a grant under the United Kingdom Redmeat Slaughterhouse Industry Scheme, applications for which closed on 30th November 1980. Any slaughtering of animals by the Jewish or the Moslem method for the food of Jews or Moslems would be covered by the exemption from the pre-slaughter stunning requirement provided that the conditions laid down in the Act are met.House adjourned at seven minutes past eleven o'clock.