§ Sir H. Legge-Bourke
asked the Chancellor of the Exchequer if he will list the new Government proposals and administrative decisions, together with the cost of each, that have been announced since 10th March, 1966, and any adjustments that should now be made to the previous list given on 10th March, 1966.
§ Mr. Diamond
Pursuant to my reply [OFFICIAL REPORT, 16th March, 1967, Vol. 743, c.140], the following list covers those items which can readily be identified as falling within the scope of the hon. Gentleman's Question. For a more comprehensive analysis of supply expenditure in 1967–68 I would refer the hon. Gentleman to the Memorandum on the Estimates, 1967–68, by the Financial Secretary to the Treasury (Cmnd. 3227).355W
Cost Aircraft Industry The Government has concluded that it should take a substantial minority interest in the equity of a single company to be formed from the merger of the airframe interests of B.A.C. and H.S.A. To be negotiated. Loans to Short Bros, and Harland Ltd. to finance production of 50 Skyvans and to maintain other current production. £4.65 million. Launching aid for the B.A.C. 111–500 and one other type of aircraft chosen by B.E.A. Subject to negotiation. Launching aid for the Handley Page "Jetstream" aircraft. Subject to negotiation. Launching aid for, and a Ioan towards the production of, the Britten Norman "Islander" aircraft. £0.19 million (Launching Aid), £0.25 million (Loan). Proposal to acquire the assets of the Beagle Aircraft Co. and, pending legislation, to provide funds for its day to day operation. £1 million (Assets); £1.2 million in 1966–67, £0.565 million in 1967–68 (Working Capital). Assistance to owner-occupiers* "Option" mortgages About £28 million in 1968–69 (the first full year). Centre for Environmental Studies* Exchequer grant when fully staffed £600,000 over 5 years (beginning with £150,000 in 1967–68). Defence The Government's intentions were announced in the "Statement on the Defence Estimates, 1967" (Cmnd. 3203). Educational Building New building cost limits for schools, further and higher education (and corresponding adjustments in the building programme to take account of current building costs, with effective dates between 1st July, 1966 and 1st April, 1967). £2 million in 1966–67 and £10 million in 1967–68. Export Rebates Changes in rates of rebate £5.6 million in a full year. Finance of Local Government* Proposals set out in "Local Government Finance, England and Wales" (Cmnd. 2923) and "Local Government Finance, Scotland" (Cmnd. 2921). (These proposals will result in increased Exchequer expenditure of £43 million in 1967–68 and £84 million in 1968–69, but will not increase public expenditure.) Fishing Industry Supplementary increase on investment incentives for two years from 1st January, 1967. About £0.35 million p.a. New investment incentives for fishing vessels (£1 million in a full year, offset by the ending of investment allowances).* Hearing Aids Improvements in design, and the provision, experimentally, of head-worn aids for children. Initially about £0.2 million p.a. Hotel Industry Proposal for an experimental scheme for loans up to £5 million to assist hotel developments projects likely to increase earnings from overseas visitors. (£1 million in 1967–68 Estimates). Housing Associations Extended assistance About £60,000 p.a. cumulative increase. Industrial Efficiency Proposal to make annual grants for the five years from 1966–67 to the University of Aston towards expenditure on setting a "Small Business Centre" to propagate greater efficiency and productivity in small businesses. £0.05 million.
Cost Industrial Training Improvement in assistance for training labour for firms in Development Areas * Reaching about £1.5 million in 1970–71 Grants to Industrial Training Boards to cover part of the capital costs of additional adult training places. £2 million. Further expansion of Government Training Centres to provide a total number of places approaching 10,000. About £3 million. Improved earnings-related allowances for trainees and rehabilitees. Reaching £0.65 million in 1968–69. Investment Incentives Increased rates of investment grant in 1967 and 1968 … About £120 million in total. The payment of investment grant is also being accelerated; this, of course, adds nothing to the cost of the scheme in the long run. The increase in cost in 1967–68 will depend on how many valid claims are presented in time for payment to be made within that year. Local Transport Financial help for the construction or major improvement of public transport structure as part of comprehensive local transport plans. Cost figures cannot yet be given. Contribution towards the costs incurred by local authorities in giving financial assistance to rural bus services. Cost figures cannot yet be given. London Fares The Minister of Transport has requested the Chairmen of the London Transport Board and the British Railways Board not to submit applications for further fares increases to the Transport Tribunal for the time being. Cost figures cannot yet be given. Machine Tools Purchase of pre-production models £1 million. Overseas Aid Grants £1.475 million. Loans £112.393 million. Prisons Implementation of the Mountbatten Report Cost figures cannot yet be given. Shipbuilding Industry Bill The proposals involve the following expenditure: Grants and Loans to assist the reorganisation of shipyards. £37.65 million. Guarantees for loans to U.K. shipowners for the purchase of ships from U.K. shipyards (outstanding liability not to exceed £200 million). No expenditure in fulfilling guarantees can at present be foreseen. Expenses of the Shipbuilding Industry Board About £0.05 million p.a. Social Security Earnings related short-term benefits including extension of all widows' allowances. £73.2 million p.a. Social Security Act including non-contributory benefits £63.8 million p.a. Other measures £3.6 million p.a. "Social Work and the Community" (Cmnd. 3065) Proposals for reorganising local authority services in Scotland. Net cost unlikely to exceed £0.5 million p.a. Special help for cities with exceptional slum and over-crowding problems* Bringing forward new Housing subsidies No expenditure in 1966–67 (because the Housing Subsidies Bill lapsed). About £7.7 million in 1967–68. About £5.2 million p.a. thereafter. Teacher Training (Scotland) Admission of men to College of Education Diploma Courses for primary teachers from October, 1967. Cost cannot yet be given. Vehicles for the disabled Extended provision of these About £600,000 capital cost; annual maintenance cost of £150,000 p.a. * Adjustments to the previous list given on 10th March, 1966—[Vol. 725, c. 658–60],