Mr. Alan W. WilliamsTo ask the Chancellor of the Exchequer what estimate he has made of the cost to public finance from the BSE situation of(a) compensation to farmers, abattoirs and meat processing companies and (b) indirect losses from reduced tax revenue and employment in ancillary industries. [28520]
§ Mr. WaldegraveI refer the hon. Member to the answer I gave to my hon. Friend, the Member for Northampton, North (Mr. Marlow) on 26 April, Official Report, columns 321–22.
The indirect effects on Government tax revenues will depend upon both the length of time that output in ancillary industries is reduced, and the extent to which lower output and employment in the ancillary industries is offset by higher output and employment elsewhere in the economy. It is impossible to estimate these effects with any precision.