§ Mr. J. H. Osborn
asked the Chancellor of the Exchequer how much finance for capital investment in the nationalised industries has now been authorised by the Treasury to be raised from overseas since October, 1964; if he will give details of each funding operation, stating the nationalised industry involved, rate
Nationalised Industry Date of Borrowing 1969 Amount Authorised and Borrowed Interest Rate Repayment Terms £ million Per cent. Gas Council … … April … 31 6¼ Equal tranches over 6–15 years. Electricity Council … … August … 21 7½ Equal tranches over 6–15 years. South of Scotland Electricity Council … … August … 6 8¼ At maturity—3 years 11 months. North of Scotland Hydro-Electric Beard … … December … 3 8 Unequal tranches over 15 years. B.E.A. … … March … 7 6½ At maturity—5 years.
In addition, since 1964 B.O.A.C. has been authorised to borrow a total of £102 million overseas for expenditure overseas, mainly in United States dollars from United States bankers. These loans are repayable by instalments extending to 1994. £48 million gross was outstanding on 30th September, 1969 (the last date for which figures are available); £39 million has not yet been taken up. Interest rates range between 6 per cent. arid 10 per cent.
All this borrowing by the nationalised industries is covered by Treasury guarantee for payment of interest and principal except for a £2 million loan to B.O.A.C. No lender has any present or future rights to equity participation in the Corporations. The net effect of the borrowing by the air corporations to finance aircraft purchases is included in trade credit under the item "miscellaneous capital" in the monetary movements of the balance of payments. Other borrowing by nationalised industries is included as part of inward private investment in the longterm capital account.