HC Deb 18 April 1983 vol 41 c12
14. Mr. Chapman

asked the Secretary of State for Industry what estimate he has made of the proportion of public subsidies to industry which will be made available to each sector of industry in 1983–84.

Mr. Norman Lamont

About 60 per cent. will be for private sector and about 40 per cent. for the public sector within an overall forecast of some £1.6 billion.

Mr. Chapman

I am grateful to my hon. Friend for that information. Will he confirm that both the amount and proportion of public subsidies for the British Steel Corporation, British Leyland and British Shipbuilders have been reduced recently, thereby giving a better opportunity, where it is deemed that public subsidies are necessary, to invest in the new, expanding technological industries that will give the best prospects for long-term new employment?

Mr. Lamont

I confirm that that is so. In 1980 the total amount devoted to supporting the public sector was £1.9 billion. In 1982–83 it is expected to be £1.4 billion. Having explained the proportions, it can be seen that the amount of subsidy is going in the direction that my hon. Friend wishes.

In addition, provision for support for innovation has risen from less than £60 million for 1978–79 to £230 million in 1983–84—an increase of 135 per cent. in real terms.

Mr. Marlow

Will my hon. Friend establish a clearing house, if there is not one already, to investigate the lavish sums that are offered to seduce foreign companies to set up manufacturing businesses in the United Kingdom in areas where we already have sufficient manufacturing capacity?

Mr. Lamont

I assure my hon. Friend that our manufacturing capacity is taken into account when any question arises of giving assistance to a foreign company to come into this country. My hon. Friend will appreciate that many jobs and a large amount of investment in new industries come from foreign-owned companies. They often bring new management methods and technology. Foreign-based companies should not necessarily be regarded as having nothing to add to our economy. They can add considerably.