§ 21. Mr. Biffenasked the Minister of Technology what proposals he has to finance part of the capital requirements of the nationalised industries for 1968–69 to 1973–74, outlined in Command Paper No. 4234, in the form of a private equity or debenture participation.
§ Mr. Harold LeverNone, Sir.
§ Mr. BiffenIs the right hon. Gentleman aware that it is quite evident from that White Paper that the capital requirements, in as much as they are financed from domestic sources, must come either from higher prices or from taxation? Will he not therefore diminish his political prejudices and join with those of us who seek to tap a wider private capital market in this fast-growing area of expenditure?
§ Mr. LeverIf the present financing system of the nationalised industries derives from my political prejudices, these at any rate appear to have been shared by predecessor Conservative Governments. In fact, they are sensible financial arrangements. The amusing possibilities opened by the hon. Gentleman's suggestion must, I fear, be resisted.
§ Sir K. JosephDoes the Minister not accept that unless the Government rescue Government borrowing from the public, 995 which has slumped so disastrously under the present Administration, then, as my hon. Friend said, if the proposals in his Question are rejected, investment will come only from price increases or taxation increases?
§ Mr. LeverThe right hon. Gentleman is mistaken in supposing that the Government have any difficulty in borrowing what is required for public purposes. On the contrary, the Government are at present net repayers of debt.
§ Sir G. NabarroWould the right hon. Gentleman qualify that by saying, "Borrowing for public purposes at a record high price to the taxpayer"?
§ Mr. LeverIn that respect, of course, sharing the experience of every major Government in the world.