Privatisation (Hansard, 13 May 1985)

§ 11. Mr. Bruce
asked the Chancellor of the Exchequer what is his estimate of the net capital gain and revenue loss, respectively, to the Exchequer from the privatisation of publicly owned enterprises since 1979.

§ Mr. Lawson
Capital receipts from special sales of assets since 1979 amount to some £5 billion. The overall revenue effects cannot be calculated, but what is clear is that privatisation has invariably led to greater efficiency, better industrial performance and wider share ownership.

§ Mr. Bruce
Given the Prime Minister's continued lectures to the effect that the United Kingdom's economy can be compared to the corner shop in which she grew up, does the Chancellor agree that the owner of a corner shop would not regard selling off capital to boost the current year's turnover as a prudent move?

§ Mr. Lawson
The hon. Gentleman seems to have overlooked the fact that the concerns that have been privatised remain part of the United Kingdom economy, even when they cease to be owned by the state, and, indeed, become a much more successful part of the United Kingdom's economy, to the beneift of the whole country.

§ Mr. Yeo
Has my right hon. Friend noticed the recent press interview given by the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley) in which he advocated the renationalisation of British Telecom? Does my right hon. Friend agree that such a move would be the most appalling waste of taxpayers' money and would deprive hundreds of thousands of workers of their first experience of share ownership?

§ Mr. Lawson
My hon. Friend is absolutely correct. That is what the Labour party pledges it will do. All those who hold British Telecom shares should be made widely aware of that. Nevertheless, this will not be put to the test, because the Labour party will not be in government.

§ Mr. James Lamond
Does the Chancellor think that the privatisation programme has had any impact on the inflow of funds to building societies?

§ Mr. Lawson
I do not know.

§ Mr. Hirst
Does my right hon. Friend agree that the companies privatised since 1979 have, without exception, 1147 increased their profitability, and that they are making and will continue to make a sizeable contribution to the exchequer?

§ Mr. Lawson
My hon. Friend is right. All those companies, without exception, have improved their profitability—some of them to a substantial extent—as a direct consequence of privatisation. They have also improved their industrial relations, and the work forces have made it clear how much better they feel now that they are in the private sector. As a result of privatisation we have also doubled the number of people who directly own shares, and that is of the first importance.

§ Dr. McDonald
Is not the figure of £5 billion that the Chancellor gave earlier dwarfed by the sum of £12,000 million raised by the sale of council houses and other local authority assets since 1979, precious little of which has been reinvested in housing for the homeless and others in need? Is the Chancellor aware that the most recent figures for new orders for council housing for the first quarter of this year total a mere £174 million, 21 per cent. down on the first quarter of last year? When will the Government stop frittering away the nation's assets?

§ Mr. Lawson
When will the Labour party make its policies clear? It began by opposing the sale of council houses. I was then given to understand, from a speech made by the hon. Member for Birmingham, Perry Barr (Mr. Rooker), that the party was backing off that policy and coming to terms with the sale of council housing. Now the hon. Lady seems to oppose the sales. Will she please make her party's policy clear?