§ Mr. Temple-Morris
To ask the Secretary of State for Social Services if he will give for the last three years for which figures are available the amount of public subsidy given to Remploy; how this is calculated and structured; and whether any separate or designated subsidy is given to the Remploy surgical appliance division.
§ Mr. Lee
I have been asked to reply.
The Government subsidy to Remploy for each of the last three years was as follows:
£ million Revenue subsidy Capital loans Total 1985–86 48.5 10.8 59.3 1986–87 47.9 9.2 57.1 1987–88 49.7 8.3 58.0
The level of subvention is agreed annually in negotiations between my Department and the company. The underlying principle is that the Government should meet that portion of the company's costs which cannot be 752W covered by income generated through its trading activities. The company has been very successful in meeting the stringent financial targets agreed with the Government, and the level of Government revenue subsidy has declined by around £2 million in real terms over the last three years, while numbers of disabled workers employed have increased slightly.
There is no separate or designated subsidy for Remploy's surgical appliance division.