HC Deb 06 April 1981 vol 2 cc673-4
8. Mr. Neubert

asked the Secretary of State for Industry what is his estimate for the year 1981–82 of the cost of his Department's committed and contingencies support for public and private industry, respectively.

5. Mr. Marlow

asked the Secretary of State for Industry if he will calculate the amount of grant by his Department to private industry as a percentage of the public money agreed by his Department for public industries, including ICL, over the last 12 months.

The Secretary of State for Industry (Sir Keith Joseph)

Estimated expenditure in support of British Shipbuilders, British Steel, BL and Rolls-Royce is about £1,970 million for 1980–81 and a similar amount for 1981–82 at out-turn prices. The equivalent estimates for other industries are £870 million an 1980–81 and £915 million in 1981–82.

ICL is of course in wholly private ownership. The Department's contingent liabilities include not only the £200 million guarantee for ICL announced on 19 March, but also guarantees under such schemes as the shipbuilding home credit scheme and the exchange risk guarantee scheme for EIB and ECSC loans. The actual costs of these liabilities cannot be estimated.

Mr. Neubert

I thank my hon. Friend for those significant figures. Are there firm prospects of a shift in emphasis from support for traditional industries in decline to creating conditions conducive to prime investment in those high technology and high added-value industries on which our long-term future must depend?

Sir Keith Joseph

That is our hope and intention, but I do not want the House to forget that companies are relieved of about £5 billion a year in taxation of income used for capital investment.