§ Mr. Cantasked the Chancellor of the Exchequer whether he will publish his current forecast of the level of capital 166W expenditure in the public sector in 1967–68.
§ Mr. CallaghanYes. My present estimate of public sector capital expenditure in 1966–67 and 1967–68 is as follows. The figures given for investment by the nationalised industries in 1967–68 are subject to some further adjustment; revised figures will be available for publication at the time of the Budget.
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INVESTMENT* OF NATIONALISED INDUSTRIES, ETC. £ million Estimated out-turn at out-turn prices 1966–67 Estimate at 1967 Survey prices 1967–68 NATIONALISED INDUSTRIES† National Coal Board 87 81 Gas Council 197 280 Electricity Council 673 670‡ South of Scotland Electricity Board 52 71 North of Scotland Hydro-Electric Board 10 8 British European Airways 19 24 British Overseas Airways Corporation 11 22 British Railways Board 108 106 London Transport Board 25 26 British Transport Docks Board 13 19 British Waterways Board 1 2 Transport Holding Company 27 26 Post Office 268 303 British Airports Authority 6 9 OTHER British Broadcasting Corporation 7 10 Independent Television Authority 1 1 Richard Thomas and Baldwin 8 13 Less Shortfall§ -50 -70 GRAND TOTAL 1,463 1,601 * Investment is defined as expenditure on Fixed Assets before deducting proceeds from the sale of Assets. † These figures are the most recent estimates made by the industries. Forecasts incorporating later figures will be published in the 1967 White Paper on Loans from the Consolidated Fund. ‡ Under review. § Probable shortfall resulting from unforeseen difficulties and delays is forecast by the Government for the purpose of financial calculations; there is no intention of withholding finance from industries which are in a position to carry out their approved programmes.
DOMESTIC CAPITAL EXPENDITURE* (Including Nationalised Industries, etc.) £ million Estimated out-turn at out-turn prices 1966–67 Estimate at 1967 Survey prices 1967–68 Defence Budget 38 45 Roads 256 327 Housing (including improvement grants) 643 750 Police and Prisons 26 29 Education 294 313 Health and Welfare 122 140 Nationalised Industries, etc. less shortfall) 1,463 1,601 Other† 648 848‡ TOTAL DOMESTIC CAPITAL EXPENDITURE 3,490 4,0531‡ Less Sales of Fixed Assets -79 -74 3,411 3,979‡. Of which:— Gross Domestic Fixed Capital Formation: Central Government 361 411 Local Authorities 1,275 1,435 Nationalised Industries, etc. 1,419 1,563 Other Public Corporations 103 131 Total 3,158 3,540 Capital Grants to Private Sector 180 350‡ Net Lending to Private Sector 73 89 * Domestic capital expenditure is defined as expenditure on fixed assets (before deduction of proceeds from the sale of assets) together with grants and net lending to the private sector (e.g. universities) for capital purposes. It thus provides a measure of the total of domestic asset-creating expenditure by the public sector. † Includes unallocated shortfalls of £55 million in 1966–67 and £60 million in 1967–68 on programmes other than those of the nationalised industries. ‡Includes £166 million for Investment Grants.