HC Deb 17 June 1976 vol 913 cc725-6
10. Mr. Peter Morrison

asked the Chancellor of the Exchequer what is the total cost expressed in £ sterling per head of the population on an annual basis of: (a) food subsidies, (b) housing subsidies and (c) the deficit in the nationalised industries.

Mr. Joel Barnett

The cost in 1975–76, in pounds per head, of food subsidies, housing subsidies and subsidies paid to nationalised industries was £10, £20 and £13 respectively.

Mr. Morrison

Does the Chief Secretary not understand the view that subsidies such as food subsidies are an extravagant use of taxpayers' money? Would it not be better to abolish them now and give real help to those in need?

Mr. Barnett

No. The underlying cash figure for food subsidies for 1975–76 was £572 million. That is reduced in 1976–77 in cash limit terms to £409 million, and we are planning to reduce it altogether over the next few years.

Mr. Cryer

Will my right hon. Friend confirm that in 1975, £1,500 million went to industry in the form of grants, subsidies, amortisation allowances, and so on? How much went to farmers in the form of subsidies? Will my right hon. Friend give the figure off the cuff—I know that he is familiar with these things—per head of the population, represented by this massive injection into industry and farming? Is there any private enterprise left these days?

Mr. Barnett

I am obliged to my hon. Friend for his confidence in my having that sort of figure at my finger tips. I am sorry to have to tell him, however, that the precise figure, to the nearest pound, escapes me, and since I would not want to be even slightly out in answering him I hope that he will table a specific Question on the point.

The question of transfer payments to industry, or to farming, or of transfer payments generally, is important. Given that a finite amount of resources is available in the nation, any transfer payments that we make limit the amount that we can make available for public services generally. My hon. Friend is correct that we should be looking at transfer payments as a whole.