§ Q1. Mr. BurnsTo ask the Prime Minister if he will list his official engagements for Tuesday 19 July.
§ The Prime Minister (Mr. John Major)This morning, I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.
§ Mr. BurnsDoes my right hon. Friend agree with the conclusion that the Organisation for Economic Co-operation and Development drew from its perspicacious study of the British economy that the route to higher output, lower unemployment and lower inflation is through sound public finances and deregulation, not placing additional burdens and red tape on business, as advocated by the Opposition parties?
§ The Prime MinisterI certainly recommend the OECD report to the House for what it says on both the economy and the health service. I hope that Opposition Members will take time to read it—I know that they have been preoccupied, but it is a good read. The point about the OECD report is that it recognises that the policies that the Government have pursued have helped to transform our economic prospects, which are better now than I can remember for many years—we intend to keep them that way.
§ Mrs. BeckettDoes the Prime Minister agree with the Chancellor of the Exchequer that in this country we still exempt far too many goods and services from value added tax?
§ The Prime MinisterThe right hon. Lady should read all that my right hon. and learned Friend said yesterday before selectively misquoting what he said. I shall remind the right hon. Lady what my right hon. and learned Friend said in reply to the hon. Member for Dunfermline, East (Mr. Brown) who is chatting on the front Bench. My right hon. and learned Friend said:
It is utterly pathetic to come out with constituency letters in which I merely state my long-stated and well-known view that if we were starting again we might have a lower rate of VAT and fewer exemptions. As he knows, that is not policy now".— [Official Report, 18 July 1994; Vol.247, c.59.]
§ Mrs. BeckettBut the Prime Minister is doing it again —he is running away from the question. I am asking him whether he agrees with the Chancellor that too few goods and services are subject to VAT. Surely he knows the answer to that. Most people in this country believe that too much is already subject to VAT and they want to know whether the Government are, as it now appears, looking for 173 an opportunity to put VAT on fares, books or children's clothes. It seems that the Government want to do that. Will the Prime Minister now admit it?
§ The Prime MinisterBesides listening to what I said a moment ago, the right hon. Lady might care to look at what I said in the House on 14 June, 17 May and 25 January this year, and on 19 October, 6 May, 23 March and 18 March last year. If she is concerned about extra value added tax, perhaps she will tell me whether she agrees with the hon. Member for Sedgefield (Mr. Blair), who has said in relation to VAT on private schools and private medical care:
That is something specifically being looked at".
§ Mrs. BeckettSurely the Prime Minister realises that the Chancellor has yet again let the cat out of the bag, by giving an indication that the Government want to put VAT on fares, children's clothes and books. The Prime Minister was willing enough to deny his intentions on VAT before the election, when he was seeking votes, so why is he not prepared to come clean now? Does not the Tory party have a party addiction to VAT; and is not that addiction damaging the budget of every British family?
§ The Prime MinisterSo much for a clear denial of extending VAT to private medical health care—we can draw our own conclusions from that.
As for our policy, I refer the right hon. Lady again to what my right hon. and learned Friend said yesterday. As the hon. Member for Dunfermline, East (Mr. Brown) knows—he is raising this scare again—this is not our policy now and we are not starting again. I see no likelihood of extending VAT. I look forward to a clear denial of what the hon. Member for Sedgefield (Mr. Blair) said the other day about his plans to put VAT on private education.
§ Mr. Nicholas WintertonDuring his very busy day, will my right hon. Friend accept an invitation from me to visit Macclesfield, which has one of the lowest unemployment rates in the country and where manufacturing industry has a very meaningful presence? Will he also accept an invitation to sample the culinary expertise of my constituent, Mrs. Annie May of Sutton, which is near Macclesfield, who won the Good Housekeeping recipe competition and gave her £10,000 first prize to Save the Children Fund? Is not that an example of the success of private enterprise and social concern and involvement?
§ The Prime MinisterMy hon. Friend's—[Interruption] I know it is the end of term: relax. My hon. Friend's invitation is irresistible. On a date that I cannot yet give him, I shall be happy to accept it.
As my hon. Friend rightly says, unemployment is falling and has been falling for quite a long time—almost since the shadow Chancellor predicted that it would go up month after month.
§ Mr. AshdownWill the Prime Minister list what steps Britain is taking to assist in Rwanda and what further steps he proposes to relieve suffering and save lives from the terrible catastrophe taking place today on Rwanda's borders?
§ The Prime MinisterAs the right hon. Gentleman may know, we have already provided air lifts to help with the food required in Rwanda. They are likely to continue. We are liaising with our partners on what may be done.
§ Mr. BudgenWill my right hon. Friend explain why he has decided not to take the opportunity to make a formal statement on the important choice of Mr. Santer as president of the European Commission? Also, why does he not explain why he proposes the appointment of the right hon. Member for Islwyn (Mr. Kinnock) as a Commissioner —an appointment which will give much pleasure to all members of the Labour party?
§ The Prime MinisterUpon the latter point, no formal decision has been made. When I have a decision to announce I will announce it.
As for a statement, none was necessary. If any hon. Member thought that it was necessary, but not forthcoming, he would no doubt have tabled a private notice question.
§ Q2. Mr. LewisTo ask the Prime Minister if he will list his official engagements for Tuesday 19 July.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. LewisDoes the Prime Minister concede that the 1988 changes in the television concessionary licence scheme have proved to be very unfair—even more than they were previously—and that now that it has been determined that the Government will continue the television licence, will he not now return to 1988 and install some fairness into the system, for all pensioners?
§ The Prime MinisterI do not think that returning to 1988 is an easy proposition, but I note the point that the hon. Gentleman makes.