Nationalised Industries (Capital Requirements)

Oral Answers to Questions — National Finance – in the House of Commons at 12:00 am on 18th July 1967.

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Photo of Mr Julian Ridsdale Mr Julian Ridsdale , Harwich 12:00 am, 18th July 1967

asked the Chancellor of the Exchequer if he will issue general directions to the nationalised industries for which he is responsible to finance capital developments in those in- dustries in the private investment market, rather than by price increases.

Mr. MacDennot:

It has been Government policy for many years that the nationalised industries should borrow long term only from the Exchequer and that the industries should contribute a substantial proportion of their new capital requirements from their own earnings. My right hon. Friend is reviewing nationalised industries' borrowing arrangements but is not yet ready to make a statement on this subject.

Photo of Mr Julian Ridsdale Mr Julian Ridsdale , Harwich

Is it not iniquitous that old age pensioners and others who cannot afford it should be forced to contribute to expensive capital requirement, such as has happened with the electricity industry, when there has been a 10 per cent. price increase?

Photo of Mr Niall MacDermot Mr Niall MacDermot , Derby North

If it is an iniquitous policy, it was laid down by the hon. Gentleman's party when they formed the Government.