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Written Answers

Volume 420: debated on Wednesday 3 June 1981

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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

Table 3.3£ million at outturn prices
Capital requirements(1)Financed by(1)
Internal resources(12)External finance
Fixed assets in the UKOtherTotalCurrent cost operating profitInterest, dividends and tax (2)Depreciation etc (3)Other receipts and paymentsTotalGovernment grants (4)Issues of PDC (5)Net borrowing from the NLFNet overseas borrowingNet market borrowingShort-term borrowing and leasingTotal(6)
National Coal Board665-212453-327-17927632-198244184128194651
Electricity (England and Wales)834100934514-482629847455837-340-483170189
North of Scotland Hydro-Electric Board46408613-516052711138-154259
South of Scotland Electricity Board6559124-16-661447696745-31-2655
British Gas Corporation40274476466-4045641923-120-90-205-32-447
British National Oil Corporation2182220175-40112247(7)84(8)-108-41-27
British Steel Corporation289-275(9)14-561-196200-8-565905-209-34-83579(9)
Post Office1,284194(10)1,478755-5279061041,238-184-62486240(10)
British Airways Board289-51238-9-5813316710-6149-826171
British Airports Authority54-6486-13514481-1
British Railways Board381-196185-725-6216692-5296872619-1-17714
British Transport Docks Board1321615-1217222-7-7
British Waterways Board44-22-11-2223326
National Freight Company Ltd.35540-2-12161012111728
National Bus Company60161-42-15344-196012880
Scottish Transport Group16-115-9-11213142-1-312
British Aerospace4267109(11)4(11)(tt)563320
British Shipbuilders182139(11)-13(11)(tt)-19731236-5524236
Total4,715-1754,540-1,7641,9271,0871,184673-285-7477012,613
(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

A. 1980–81 Estimated Outturn(1)

Table 17£ million
Capital requirements(2)Financed by(3)
Internal resources(t)External finance
Fixed assets in the UKOtherTotalCurrent cost operating profitInterest, dividends and tax (4)Depreciation etc.(5)Other receipts and paymentsTotalGovernment grants(6)Net borrowing, issues of PDC(7) and leasingTotal(8)
National Coal Board800-45755-268-25743315-77251581832
Electricity (England and Wales)9633391,302233-5681,2342281,1275170175
North of Scotland Hydro-Electric Board41307139-6147429162642
South of Scotland Electricity Board13415149-18-7915731915858
British Gas Corporation52314166443684441761,064-400-400
British National Oil Corporation278-23255298-141688460(9)-205(10)-205
British Steel Corporation17553228-712-179298-300-8931,1211,121
Post Office1,613-2201,393807-5291,237151,530-137-137
British Airways Board2706276-128-7616016-28304304
British Airports Authority8569114-136847318(11)18
British Railways Board342-130212-818-74197117-578673117790
British Transport Docks Board101117-919421-10-10
British Waterways Board77-24-212-2326430
National Freight Company Ltd.36-135-5-112317246511
National Bus Company64-163-55-184110-22661985
Scottish Transport Group16-115-10-1131321-912
British Shipbuilders131629 (12)-5 (12)(12)-13642123165
Total5,3701865,556-1,8882,6651,1061,785(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

£ million
1979–801980–81(Provisional)
Government grants (1)Issues of PDCNLF (net)Overseas borrowing (net)Market borrowing (net)Short-term borrowing (net)LeasingTotalGovernment grants (1)Issues of PDCNLF (net)Overseas borrowing (net)Market borrowing (net)Short-term borrowing (net)LeasingTotal
National Coal Board244184128175196512514868510832
Electricity (England and Wales)5837-340-483159111895396-71-18328175
North of Scotland Hydro-Electric Board11138-154025916147-64-30-28142
South of Scotland Electricity Board6745-31-2655-34-492458
British Gas Corporation-120-90-205-5725-447-98-204-991-400
British National Oil Corporation84(2)-108-41-27-127(2)-76-31-205
British Steel Corporation905(3)-209-34-93105791,223(3)-50-106541,121
Post Office-184-624335324010-949542-137
British Airways Board10-6149-822417110-6309-9304
British Airports Authority1-1-119(4)18
British Railways Board6872619-1-382171467377-18-13722790
British Transport Docks Board-7-7-8-2-10
British Waterways Board2332626430
National Freight Company Ltd.11-4212863211
National Bus Company60128806613685
Scottish Transport Group142-1-31221-2-1-612
British Aerospace(5)332053
British Shipbuilders31236-552423642123165
(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—

  • (a) the percentage of gross earnings payable in income tax and social insurance contributions taken together; and
  • (b) the percentage of actual or anticipated consumption expenditure taken for total indirect taxes, including local taxes, national insurance surcharges and the like.
  • The figures requested are as follows:

    EarningsYearIncome Tax and National Insurance Contributions as % of Gross EarningsTotal Indirect Taxes as % of Consumption Expenditure
    1978–79
    ⅔ average22·230·7
    average28·027·5
    1½ x average31·825·1
    1979–80
    ⅔ average21·431·3
    average26·428·9
    1½ x average29·827·0
    1980–81
    ⅔ average22·832·0
    average27·429·3
    1½ x average30·527·4
    1981–82
    ⅔ average25·134·3
    average29·331·2
    1½ x average32·128·8
    The figures for 1981–82 were calculated on the illustrative assumption that earnings between 1980–81 and 1981–82 increase in line with the forecast growth in prices, that is by 10½ per cent. Since the share of income tax and the NICs is calculated with respect to gross income, whereas the share of indirect taxes relates only to that part of gross income which is spent, the figures in the two columns cannot be aggregated to give an overall calculation of the tax burden.

    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:

  • (a) How many dwellings are "unfit for human habitation";
  • (b) How many dwellings require repairs costing £2,000 or more [or any similar four-figure sum];
  • (c) How many second or third homes are known to exist;
  • (d) How many dwellings are mainly let for holiday purposes;
  • (e) How many dwellings are caravans, mobile homes or house-boats; and
  • (f) How many dwellings are "blighted" by proposals for demolition within 5 years.
  • Following are the latest estimates for England:

    Dwellings (000)Source
    (a) Unfit for human habitation794(1)
    (b) Requiring repairs costing £1,000 or more2,236(1)
    (c) Second homes120(2)
    (d) Mainly let for holiday purposesNot available
    (e) Non-permanent dwellings occupied at the Census71(3)
    (f) "Blighted" by proposals for demolition with 5 yearsNot 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.