Page 305 limit on financial grounds, they did, throughout the discussions at official level, express doubts as to the political wisdom of extending the existing limit in the new Bill,
5.
I do not, however, believe that the Opposition can make any valid case against my proposal. The National Coal Board's National Plan is founded upon the comprehensive scheme of reorganisation recommended in the Reid Report, which Opposition speakers never venture to challenge; Sir Charles Reid has himself, since his resignation, spoken and written of capital investment on this scale; the money will only be taken by the Board, as it is required, and can be used; and as it is taken, it will progressively give us a big return in coal, which we urgently require. Since a limit of £700 millions was set for the British Electricity Authority in the Electricity Act, £300 millions is really a modest figure for the National Coal Board.
6.
After careful consideration I still feel that the balance of advantage lies with my original proposal, and I therefore ask the Cabinet to authorise me to include in the Coal Industry Bill a provision to increase the Board's borrowing powers for capital purposes to £300 millions.
7.
The new Bill will also increase the temporary borrowing powers of the Board from £10 millions to £20 millions; this has been agreed with the Treasury and accepted by the Legislation Committee.
Ministry of Fuel and Power, S.W.1,
17TH APRIL, 1951.
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