HL Deb 09 March 1977 vol 380 cc1024-6

2.49 p.m.

The Earl of LAUDERDALE

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what non-budgetary measures they propose to take to reduce the public sector borrowing requirement within the next 12 months.

The SOLICITOR-GENERAL for SCOTLAND (Lord McCluskey)

My Lords, my right honourable friend in his Statement on 15th December 1976, which was repeated in this House, announced various measures to reduce the public sector borrowing requirement in 1977–78. I have nothing to add to that Statement.

The Earl of LAUDERDALE

My Lords, in thanking the noble and learned Lord for that slightly disappointing reply, since he had nothing to add, may I ask whether the Government will now fore-swear such malpractices as distributing money like confetti to the Scottish Daily News Co-operative or the Meridan co-operative, or the Scottish Parliament building before we even know whether it will be needed?

Lord McCLUSKEY

My Lords, I will not accept the criticism implicit in the way in which that supplementary question was framed; but, subject to that, the answer to the noble Earl is, certainly not.

Lord LEATHERLAND

My Lords, can my noble and learned friend tell me whether it is not a fact that the public borrowing requirement has already been substantially reduced and that much of the money the Government have to borrow is handed over to big business in this country so that industries can be kept alive?

Lord McCLUSKEY

My Lords, the latest Treasury forecast of the public sector borrowing requirement will be published in the Financial Statement and Budget Report in less than three weeks' time, on the 29th March, when my right honourable friend in another place presents his Budget. I am sure that noble Lords would not want or expect me to anticipate anything that might be said on that occasion.

The Earl of LAUDERDALE

My Lords, without wishing to invite the noble and learned Lord improperly to anticipate anything, would he not agree that it would be well if in future the Government, before distributing money to such organisations as the Scottish Daily News co-operative, would heed their own chosen consultants who advised against it?

Lord McCLUSKEY

My Lords, if the noble Earl would like a specific answer to that specific matter which relates to advances under the Industry Act, I would appreciate it if he were to put down a specific Question. I would then try to answer it with the care and fullness that it may deserve.

Lord NORTHFIELD

My Lords, would my noble friend at least accept congratulations that, after all the spirited criticisms in this House and elsewhere about the size of the public sector borrowing requirement, the Government have brought it down and brought public expenditure firmly under control at the moment?

Lord McCLUSKEY

My Lords, there is not often the chance to do so, but we are delighted to accept congratulations.

The Earl of LAUDERDALE

My Lords, is the noble and learned Lord aware that the public would not accept that public expenditure is yet under control?