asked the Minister for Industry and Commerce if he will state the total additional capital grant which the Electricity Supply Board would require to date to supplement the grants made on the basis of 50 per cent. of the cost of constructing the rural electrification network to offset the deficiency in the revenue from final charges; the estimated loss to the board during the present financial year by reason of the delay in revising the basis of the capital grants, the sources from which the board is meeting this loss, and whether any decision has yet been reached by the Government as to the percentage of the network construction cost to be offset by free grants.
Ceisteanna—Questions. Oral Answers. - Electricity Supply Board Additional Capital Grant.
The existing rate of subsidy of 50 per cent. of the capital cost of rural electrification was necessarily an estimate as there was at that time no experience of constructing or operating a rural network in this country. Moreover, since the estimates of the cost of the scheme were framed considerable increases have taken place in the cost of labour and materials. Furthermore, experience of the economy of the scheme is still very limited, as no area or group of areas has yet had the opportunity to develop its revenue or to stabilise its expenses. It has, therefore, been decided to defer a review of the adequacy of the subsidy until after the end of the year to 31st March, 1952.
In the meantime the loss, if any, arising from rural electrification is merged in the board's general results.
Can the Parliamentary Secretary give an estimate of what the loss is in any financial year?
I have no information on that at the moment. The total advance up to date for rural electrification is £3,800,000 and 50 per cent. of that is a non-repayable grant.
If the board is losing money on rural electrification by reason of the inadequacy of the grants, will their accounts show a loss; or is it a fact that other electricity users are paying the subsidy required by the board to offset the loss?
That is not so.
Will the accounts show a loss?
I think it is better wait until we see the accounts.