HC Deb 19 October 1989 vol 158 cc256-7
6. Mr. McFall

To ask the Chancellor of the Exchequer what is the latest estimate of privatisation revenue.

The Financial Secretary to the Treasury (Mr. Peter Lilley)

The net proceeds from privatisation since May 1979 amount to some £27½ billion.

Mr. McFall

Will the Chancellor confirm that since the sale of the electricity and water industries, Government expenditure on adverting will now exceed £2,000 million? Bearing in mind that more than 75 per cent. of the population are against such proposals, when will this Government get off the backs of the people and save money instead of wasting taxpayers' money so profligately?

Mr. Lilley

The figure given by the hon. Gentleman is complete bunkum. Advertising expenditure on the privatisation programme since British Telecom has amounted to less than 0.4 per cent. of the revenues raised, has undoubtedly enabled millions of people to participate in those privatisations and has thereby enabled us to obtain a better price when we have privatised. It would have been irresponsible not to have advertised and not to have let people know that we are carrying out these privatisations.

Mr. Jack

Can my hon. Friend confirm that the receipts from privatisation have helped to strengthen our public finances, repay the national debt and increase funds available for private sector investment?

Mr. Lilley

My hon. Friend makes a good point. A Labour Government, of course, would find themselves in difficulties without those revenues. However, they are not the main point of privatisation. The main point is to improve the strength of the economy, which it has undoubtedly done. That is why every economy from Warsaw to Tokyo is following our advice and only Opposition Members are against it.