§ Mr. Kilfedderasked the Secretary of State for Northern Ireland what the impact is expected to be in the current financial year of the imposition of cash limits on the services provided by the Northern Ireland Office and the various Departments for which he is responsible.
§ Mr. MasonMy latest information is that neither the Northern Ireland Office nor the Northern Ireland Departments are likely to exceed the cash limits imposed for the current financial year. I do not, therefore, expect that there will be any cut-back in services due to the operation of cash limits this year.
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§ Mr. Kilfedderasked the Secretary of State for Northern Ireland what was the anticipated rate of inflation on which the cash limits were originally based for the year 1976–77; what is the present rate of inflation; and what proposals there are for modifying the existing cash limits to take account of the change in the rate of inflation.
§ Mr. MasonThe cash limits for Northern Ireland were established on the same basis as those for the rest of the United Kingdom. A full list of the revaluation factors is available in the Appendix to the Minutes of Evidence of the General Sub-Committee of the Expenditure Committee published on 30th April 1976 (HC 342/1). The rate of inflation has been higher than had been hoped, but the Government intend that, in view of the high level of the public sector borrowing requirement, the cash limits shall be generally adhered to.
Services Financial year Equipment per cent. Salaries and related expenditure per cent. New construction per cent. Education and Library 1975–75 2.0 60 14 1975–76 2.0 59 13 Health and Welfare 1974–75 1.8 56 5.3 1975–76 1.3 57 6.1