HC Deb 23 January 1967 vol 739 cc960-1
31. Mr. Pavitt

asked the Minister of Health how much he has allocated to regional hospital boards to meet rises in the price of fuel due to Selective Employment Tax.

Mr. K. Robinson

I regret that the information is not available separately. Allocations to regional hospital boards for 1966–67 have been increased by about £430,000 to cover the increased fuel tax and the effect of Selective Employment Tax on contracts for goods and services of all kinds.

Mr. Pavitt

Can my right hon. Friend assure the House that this will not be absorbed by making cuts in other forms of hospital expenditure?

Mr. Robinson

Yes, Sir. The purpose of the £500,000 for the whole of Great Britain is to meet the increased costs which hospitals are experiencing as a result of the increased tax and the S.E.T.

Dame Joan Vickers

Will the Minister deal with this problem on a regional basis? Does he realise that in the West Country we have to pay far more for fuel than does any other part of Great Britain? It is essential that the problem should be considered on a regional basis in future.

Mr. Robinson

I think that the hon. Lady will find that the differential costs of fuel are taken into account anyhow—and have been for some time—in determining regional boards' allocations.

32. Mr. Pavitt

asked the Minister of Health what additional sum he has allocated to the hospital building programme to meet the cost of the Selective Employment Tax.

Mr. K. Robinson

£500,000 in 1966–67 to meet certain identifiable effects of the tax.

Mr. Pavitt

Does that sum cover the tremendous amount of extra work which the departments of the National Health Service, regional hospital boards and surveyors and architects have had to put in in making fresh adjustments? Will this alter the timetable of building? Can my right hon. Friend say whether the schemes now included in the first quinquennium will still be carried out in that period?

Mr. Robinson

This will not alter the timetable. I am sure that there will be no delay in hospital building as a result of this. It is not easy to be precise about the effect of this tax, because this is only one factor which can affect building, costs. Other measures introduced by the Government should have an offsetting effect.

Mrs. Knight

Can the right hon. Gentleman say whether nearly £1 million will be allocated to meet the Selective Employment Tax, or has he been talking about the same £500,000 twice?

Mr. Robinson

No, Sir; there are two figures of £500,000. One is revenue and the other capital. The great bulk of the revenue figure is to meet the costs not of S.E.T. but of increased fuel tax.