HC Deb 17 May 1966 vol 728 cc1104-5
17. Mr. Peyton

asked the Chancellor of the Exchequer why he decided that the capital requirements for 1966–67 of electricity and gas industries, the Post Office, British European Airways, London Transport, and British Transport Docks should be met by an increased proportion of Exchequer borrowing rather than from internal resources.

Mr. Diamond

Because the proportionate burden of capital expenditure must be expected to vary from year to year.

Mr. Peyton

Would not the right hon. Gentleman agree that the demands of the nationalised industries upon our resources are immense and that if they are not to grow unreasonable they must be subject to some form of discipline? This constant weakening of pressures by the Government on these industries to provide for their own needs out of their resources is wholly wrong and grossly unfair to other sectors of the economy.

Mr. Diamond

Of course, these demands must be subject to the most careful scrutiny. Indeed, that is what is happening at present.

18. Mr. Peyton

asked the Chancellor of the Exchequer why there has been a downward adjustment by £96 million of the capital requirements of the nationalised industries, referred to in paragraph 6 of Command Paper No. 2974, in view of the fact that the programmes of those industries have already been vetted and approved.

Mr. Diamond

The individual programmes are not altered but experience shows that there is always some shortfall in the aggregate of the approved programmes due to unforeseen difficulties and delays.

Mr. Peyton

Does it not seem very odd, even to the right hon. Gentleman, that when some very careful sums have been done by the industries, by the Ministry of Power, the Ministry of Transport and his own Department and they having all agreed on these sums, they should now say they should not spend them? Does not the right hon. Gentleman think that the budgeting should be more careful?

Mr. Diamond

It is in order to be more careful in budgeting that we are putting down the best estimate we can. It does not relate to individual programmes but to the fact that experience of previous years shows that, however careful one is on an individual programme, due to unforeseen delays the total aggregate expenditure is not met. In the previous year it was £124 million.

Mr. Speaker

Mr. Hooley.

Mr. Peyton

rose—

Mr. Speaker

Order. I did not call the hon. Member for Yeovil (Mr. Peyton).