§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what estimates he has made of the current marginal benefits of different forms of public investment; and if he will make a statement. [46399]
§ Mr. Darling[holding answer 18 June 1998]: The Government believe that at present the marginal benefits of public investment are likely to be relatively high, reflecting under-investment in public infrastructure over recent years. This view is based on an assessment of the quality of service generated from existing public assets. Although all public investment projects are subject to detailed appraisal, the assessment of marginal benefits is in many cases made in non-financial terms because of the difficulty of assigning a monetary value to social returns.
As explained in Cm 3978, the Economic and Fiscal Strategy Report, a number of steps are being taken, including the establishment of the Investment in Britain Fund, to make up for past under-investment and to provide for the modernisation of Britain's public sector infrastructure.
The conclusions of the Comprehensive Spending Review will include detailed spending plans, taking account of the scope for worthwhile public investment projects. Departments will subsequently prepare their Departmental Investment Strategies. These will be 505W scrutinised closely to ensure best value for money and positive social returns. The Treasury will publish the Departmental Investment Strategies in Spring 1999.
§ Mr. Malcolm BruceTo ask the Chancellor of the Exchequer what is his estimate of the level of net public investment as a share of gross domestic product for each year from 2002–03 to 2004–05;and if he will make a statement. [46378]
§ Mr. Darling[holding answer 18 June 1998]: Projections of public sector net investment in 2002–03 and 2003–04 as a share of gross domestic product are given in Table 4.5 of the Economic and Fiscal Strategy Report (June 1998). Figures for the year 2004–05 are not available.