HC Deb 25 July 1972 vol 841 cc1523-4
22. Mr. Bruce-Gardyne

asked the Chancellor of the Exchequer what is his latest estimate of the cost to public funds of subsidies to the nationalised industries necessitated by price restraint in the current financial year.

Mr. Barber

Until discussions with the industries are complete, it is not possible to give a precise estimate. For details of assistance already given, I would refer my hon. Friend to the reply given on 7th March to my hon. Friend the Member for Sheffield, Hallam (Mr. J. H. Osborn.—[Vol 832, c. 279]

Mr. Bruce-Gardyne

In the course of these discussions with industries will my right hon. Friend consider the proposition that one of the easiest ways of stimulating inflation is to disperse resistance to it by transferring the direct impact of inflation from the users of goods and services to the general body of taxpayers? Is not this a major consideration which we should bear in mind?

Mr. Barber

There are obviously important implications of the policy we have adopted, but I think everybody in the House agrees that it is of the utmost importance that we should take whatever reasonable action is open to us to combat inflation, and the continuation of price restraint by the CBI will, I believe, be of great help in this. The CBI made it clear that it could not continue the policy of price restraint unless it was matched by the nationalised industries, but I agree with my hon. Friend that there are wider considerations which also have to be taken into account.

Mr. Joel Barnett

Will the Chancellor confirm that the Government's policy on non-intervention has now been suspended, and will he consider doing the same with some of the other Acts?

Mr. Barber

No, Sir.