HC Deb 07 July 1988 vol 136 cc716-7W
Mr. Andrew Mitchell

To ask the Chancellor of the Exchequer (1) what is the percentage of value added by the farming industry which is accounted for by public money;

(2) what is the percentage of value added by the manufacturing industry which is accounted for by public money;

(3) what is the percentage of value added by the service industry which is accounted for by public money;

(4) what is the percentage of value added by the coal industry which is accounted for by public money.

Mr. John Major

The table shows general Government expenditure in each sector as a percentage of each sector's contribution to gross domestic product. The information is drawn from the United Kingdom national accounts 1987 (CSO) except for the coal industry figures, which are based on Treasury estimates. I regret that more recent compatible data are not yet available. The information is subject to revision.

The figures for agriculture underestimate the true level of support, as they relate solely to expenditure by the Government and by the European Community and do not include costs borne by the consumer of holding CAP support prices above the levels obtainable on world markets. These agricultural estimates, together with those for the coal industry, are further understated because they are calculated using gross domestic product based on United Kingdom supported prices rather than value added at world market prices.

The figure for the coal industry in 1984 is heavily distorted by the loss in output resulting from the miners' strike.

General Government expenditure as a percentage of gross domestic product by industry grouping
1983 1984 1985 1986
Agriculture, forestry and fishing 46 35 48 41
Mining and mineral resources (excluding fuels), manufacturing and construction 4 3 3 2
Transport and communications, distribution, hotels and catering, banking, finance and business services 10 8 8 6
Coal and coke supply 27 68 20 22