§ Mr. Bruce-Gardyneasked the Secretary of State for Northern Ireland what conclusions he has reached regarding Mr. De Lorean's applications for an additional £8 million from public funds; and if he will make a statement.
§ Mr. Humphrey Atkins[pursuant to the reply to the oral question, 10 July 1980, c. 750]: I am now able to make the following statement about public expenditure in Northern Ireland in the current financial year, and in particular about further assistance to the De Lorean Motor Company.
As foreshadowed during the debate on the Appropriation (Northern Ireland) (No. 2) Order 1980 on 18 July last, I intend to reallocate £50 million within the Northern Ireland public expenditure programme in the current financial year to take account of changed priorities and new demands. In addition, in the light of the review, the Government have decided to increase the resources available to the programme this year by £48 million. These figures are at 1980 survey prices. The additional resources are being made available from the Contingency Reserve and are therefore within the overall planned total of public expenditure for the United Kingdom set by Cmnd. 7841.
Of the £50 million reallocated, the main reductions are £24 million from environmental services and £10 million each from education and from health and social services. This reallocation is equivalent to 2 per cent. of total Northern Ireland resources. There will also be certain technical adjustments and some movement of resources within individual Northern Ireland Departments.
Thanks to the reallocation and the extra resources, I shall be able to increase the money available for industrial assistance and energy by £80 million. That figure will include the cost in 1980–81 of additional assistance by way of repayable loan of up to £14 million towards the cost of bringing the De Lorean DMC 12 project to market launch. The £80 86W million also includes the cost of action to prevent the level of electricity charges in Northern Ireland from worsening in relation to those in the remainder of the United Kingdom. In addition, I propose to increase the provision for law, order and protective services by some £10 million.
I shall, where appropriate, be consulting the spending authorities on the action now necessary to reshape expenditure plans. For cash-limited services this will involve the conversion of the figures from 1980 survey prices into cash terms. An announcement about Class 15 and NID 1 cash limits will be made before the recess.
It follows that the absolute moratorium on new commitments which I imposed on 30 June is now lifted. Departments and their spending agencies will be considering urgently to what extent, if any, new commitments can now be undertaken. The changes will be reflected in Supplementary Estimates which will be presented for the approval of the House in due course.