HC Deb 23 May 1939 vol 347 cc2075-8
54. Mr. Dobbie

asked the Chancellor of the Exchequer whether he can inform the House as to the estimated cost to the nation of the subsidy to farmers in regard to sheep, oats, and barley, per annum, and of the entire subsidies given to industry in general; and as to what would be the cost of advancing every old age pensioner five shillings per week?

Sir J. Simon

As the answer includes a number of figures, I will, with the hon. Member's permission circulate it in the OFFICIAL REPORT.

Mr. C. Williams

I take it that the answer is not very long, and as we have got through so many questions already, could we not have the figures?

Mr. Tinker

Can we have the figures, at any rate, of the cost of advancing old age pensioners five shillings a week?

Sir J. Simon

I do not want to read the whole of the answer, but I will do my best to summarise it. The estimated cost for one year of the proposed subsidy for sheep, oats and barley announced by the Minister of Agriculture would be: sheep, £2,500,000; oats, £2,970,000; and barley, £900,000, that is, at the prices ruling last year. Of course, the amount of the subsidy will vary with the level of prices. The provision made in the Estimates for the current year in respect of subsidies given to industry in general under existing legislation—there are about six or seven sets of figures—add up, I am afraid, to something like £12,000,000. The amount included in the table for oats and barley will not be required under the proposal announced by the Minister of Agriculture on 18th May. As regards the latter part of the question, the additional cost involved in increasing old age pensions by 5s. a week including pensions to widows between the ages of 65 and 70 and widows' pensions when the widow is aged over 65, would be about £38,000,000 a year at the present time, but would rise steadily for many years and would be about £46,000,000 in 10 years' time.

Mr. Shinwell

Does the right hon. Gentleman exclude de-rating as far as a subsidy to industry is concerned?

Sir J. Simon

I do not think the derating provisions are included in the figures. The question is as to specific grants to special industries.

Mr. Shinwell

Does the right hon. Gentleman not agree that a rebate of this kind is, in fact, a subsidy?

Mr. Kirkwood

When the Chancellor of the Exchequer said that to increase old age pensions would cost £46,000,000 in 10 years, does it means £46,000,000 for each year?

Sir J. Simon

I said that it would be about £46,000,000 a year in 10 years' time.

Mr. Gallacher

Is the right hon. Gentle-man not aware that he would have the support of the whole House if he found this £46,000,000?

Viscountess Astor

Is it not true that the Government are spending on nursery schools about one-eighth of the amount of the subsidy given to barley alone?

Mr. Benn

Has the right hon. Gentleman expressed any opinion to his colleagues on the growing practice of giving this money by an estimate instead of by proper enactment?

Following is the answer:

The estimated cost for one year of the proposed subsidies for sheep, oats and barley announced by the Minister of Agriculture on 18th May, would have been as follows at the prices ruling last year:

£
Sheep 2,500,000
Oats 2,970,000
Barley 900,000
The amount of the subsidy in each case will, of course, vary from year to year according to the level of prices.

The provision made in the Estimates for the current year in respect of subsidies given to industry in general under the existing legislation was as follows:

£
Beet Sugar 3,000,000
Cattle Industry 4,265,000
Milk 919,410
Land Fertility Improvement 1,500,000
Oats and Barley 930,000
Bacon 425,010
Herring Industry 73,450
Civil Aviation 1,999,000
The amount included in this table for oats and barley would not be required under the proposals announced by the Minister of Agriculture on 18th May.

As regards the latter part of the question, the additional cost involved in increasing old age pensions by five shillings per week, including pensions between the ages of 65 and 70 and widows' pensions when the widow is aged over 65, would be about £38,000,000 a year at the present time. The cost would rise steadily for many years and would be about £46,000,000 a year in 10 years time.