§ 15. Mr. Jesselasked the Secretary of State for Industry if he will compare the total cost of industrial subsidies in 1974 and 1975; and what is his forecast of the figure for 1976.
The Minister of State, Department of Industry (Mr. Alan Williams)Expenditure on support to industry, at 1975 public expenditure survey prices and net of repayments, was £1,236 million in 1974–75 and £1,531 million in 1975–76. The forecast for 1976–77, including investment by the National Enterprise Board, is £1,453 million.
§ Mr. JesselAs the 1975 figure of £1,530 million represents, for the average household, about £125 in taxation per year, does not the hon. Gentleman agree that subsidies to industry are going too 17 far, especially since these figures do not include sums for the Department of Energy and industries that it sponsors?
Mr. WilliamsThe hon. Gentleman will appreciate that the capacity to pay tax depends upon the taxpayer's ability to earn income and, therefore, on the efficiency of industry. I am sure that he would not suggest that we were wrong to attempt to regenerate industry and to get new investment in order to build up new industries in the place of old.