§ Baroness Hornsby-Smithasked Her Majesty's Government:
What are the total subsidies and grants over the past four years allocated to the steel industry, the coal mining industry, and British Rail, compared with the investment proposed for the textile, clothing and footwear industries over the next four years; and what value added was contributed by each of these industries to the national economy in the last available year.
§ The Chancellor of the Duchy of Lancaster (Lord Cockfield)Total grants and subsidies paid over the past four years to the coal and steel industries and to British Rail amount to around ₣9 billion. Subject to approval by the European Commission, the Government intend to provide over the four years to 1987–88 ₣20 million for a scheme of investment support for the clothing, footwear and textile industries.
Value added of an industry may be calculated from the income of factors of production in the industry (wages, salaries and profits) after deducting stock appreciation. However, estimates from published accounts require judgment and need to be treated with caution. On the basis of published accounts, value added to the national economy by the NCB and its subsidiaries, BSC and its subsidiaries and British Rail in the year ended April 1983 is estimated to be of the order of ₣41/4 billion.* Value added by the textile, clothing and footwear industries in 1981 was about ₣31/2 billion. †
*Calculated from:
NCB: wages and related costs plus profit before tax and after interest minus stock appreciation;
BSC: employment costs plus profit before tax and interest minus stock appreciation, interest and rationalisation costs;
British Rail: staff costs plus group surplus after interest minus stock appreciation. The public service obligation grant is treated as revenue and not as a deficit grant for this purpose.
†Calculated from tables 3.1 and 3.2 of 1983 National Income and Expenditure.