HC Deb 11 February 1965 vol 706 cc545-6
Q5. Mr. Shinwell

asked the Prime Minister what representations he has received from financial sources in the City of London on the nation's economic position; and what proposals they have made to him.

The Prime Minister

My right hon. Friends and I have received representations and proposals from various sources about the economic situation. Some have been made public; others were confidential.

Mr. Shinwell

Is my right hon. Friend aware that not everybody in the City of London looks with disfavour on Her Majesty's Government and that there are many persons in the City, leaders in finance and business, who are very anxious to enter into consultations with members of the Government on matters of mutual interest? Will my right hon. Friend encourage these persons, of whom no doubt he is aware, to meet the Government from time to time?

The Prime Minister

Yes, Sir, it is certainly the case that we get very valuable informal advice from a number of very distinguished people in the City of London who are only too anxious to co-operate with any Government of any colour in this country. But, of course, I think that too much has been made in the past by the House of the word "City". What I think is of fundamental importance, if we are to solve our problems in the industrial field, particularly in relation to exports, imports and technological innovations, is that we have the closest co-operation and the closest consultation with productive industry also, and this we are doing.

Sir C. Osborne

Is the Prime Minister proposing to act on the advice given to him by the Governor of the Bank of England at a dinner where the Chancellor of the Exchequer was present, that there could be no real cure for the nation's economic position unless there was a severe cut in local government and Government expenditure? If the right hon. Gentleman is not going to take that advice, why not?

The Prime Minister

I think that particular sentiment has been expressed with great vigour and authority by successive Governors at certainly every annual bankers' and merchants' dinner in October each year, and has been urged very strongly on successive Chancellors. So far as this year is concerned, my right hon. Friend will be announcing the Estimates in due course. The House will be well aware that the commitments and expenditure programmes entered into before we came to office for this year already show a high proportionate increase over last year, going far beyond any increase related to the increase in national production.

Sir C. Osborne

All these things—

Mr. Speaker

Order. I realise that it is a very wide question and that is one of the reasons why we must get on.