19. Mr. Dixonasked the Chancellor of the Exchequer what he estimates to have been the deficits of the nationalised industries in 1973–74; and what he expects them to be in 1974–75.
§ Dr. GilbertI expect revenue support to the nationalised industries to amount 1313 to about £800 million in respect of 1973–74 of which roughly £550 million will take the form of deficit grants and compensation for price restraint. I am not yet in a position to say anything about 1974–75.
Mr. DixonDoes the Minister agree that the figure is bound to be significantly higher than it was last year and, if that is so, that the rate of inflation is bound to be higher as well?
§ Dr. GilbertIt is quite impossible to make predictions about the size of the nationalised industries deficits for next year until announcements about their pricing policies have been made.
§ Mr. DalyellIs not one of the skeletons in the cupboard the way in which no decision was reached month after month by the previous Government on pricing policy for the nationalised industries, to the detriment of investment? Although the Chancellor of the Exchequer has many difficulties, does my hon. Friend realise that some of us would like to see investment in the nationalised industries given a high priority, particularly in nuclear power?
§ Dr. GilbertI am grateful to my hon. Friend for his remarks. His analysis of the situation is correct: it had an effect not only on the investment plan for nationalised industries but, unfortunately, upon their morale.
Mr AdleyDoes not the figure announced by the hon. Gentleman make Concorde seem a most inexpensive investment?
§ Dr. GilbertAll one would want to say about the spending plans of the Opposition is that, to the extent that they contributed to the deficit of the nationalised industries through price restraint and to the extent that they represent the costs of the confrontation policy of the Opposition, they made the bed and the rest of the country has had to lie on it.