§ Mr. Austin Mitchell
asked the Secretary of State for Industry whether he will update the information given in his reply, 18 March 1980, Official Report, c. 130–132, concerning bank advances to industry.
§ Mr. MacGregor
The basis of the company accounts analysis has been changed since the previous reply. It now covers a representative sample of all industrial and commercial companies, unlisted as well as listed and those mainly operating overseas as well as those operating mainly in the United Kingdom. The figures given relate to large companies only—see footnote † of the table. The total number of such companies is estimated at about 1,700 in 1978, some 800 of them manufacturing. The first two columns of the table relate to all industries rather than just manufacturing, distribution and certain services as before. An alternative series for all industrial and commercial companies is available from the national accounts, although they do not provide separate figures for manufacturing nor for different sizes of companies. They can be found in "Financial Statistics" table 8.2.
Increase in Amount owing to Banks as a Percentage of Total Net Borrowing* Large Companies† All Industries Manufacturing|| Short-term loans‡ Short-term loans Excluded Included Excluded Included 1977 72 75 74 63 1978 33 36 55 54 1979 132 139 108 95 1980 103 69 100 114 * Gross borrowing less repayments or redemptions. Includes bank borrowing, debentures, other loans and mortgages (but see note ‡). † "Large" defined as in Business Monitor "Company Finance" MA3 12th and 13th issues, ie companies with capital employed of over £4.16
million. Figures are grossed-up from a sample to cover all limited companies or company groups registered in Great Britain other than financial companies. Full details are given in MA3. ‡ Short-term loans (ie repayable wihin 5 years) other than bank loans. ║ Orders III-XIX, 1968 Standard Industrial Classification.