§ Q2. Mr. Hordernasked the Prime Minister whether he will now abolish the Department of Economic Affairs.
§ The Prime MinisterNo, Sir.
§ Mr. HordernIs it not clear that one of the main reasons for the collapse of the Government's economic policy lies in the fact that two Ministries are responsible for that policy? Who is now supposed to be in charge? Is it the Chan- 224 cellor of the Exchequer or the Prime Minister as head of the Department of Economic Affairs?
§ The Prime MinisterThe Cabinet is in charge. In accordance with practice, the Treasury is responsible for all matters dealing with monetary, foreign exchange, budgetary, taxation and Government expenditure questions, while the D.E.A. is responsible for co-ordinating the industrial effort of the nation.
§ Mr. OrmeIs the D.E.A. in favour of wages legislation? Can my right hon. Friend clear up the question as to whether or not he gave a personal assurance to Mr. George Woodcock that no further legislation on this matter would be introduced?
§ The Prime MinisterAs I said a week or two ago, we shall be making a full statement on these matters. [HON. MEMBERS: "Answer."] I was asked about the position of the D.E.A. in regard to legislation. I have said that we shall be making a statement on this in the near future. So far as Press reports of my conversations with Mr. Woodcock are concerned, I said to him during the weekend of devaluation, with my right hon. Friends, that we had at that time no present plans for further legislation in these matters. In my discussion with the T.U.C. on 5th January—I have not the quotation here but I can give it if my hon. Friend puts down a Question—I indicated that, in certain circumstances, further powers would be necessary.
§ Mr. SpeakerMr. Molloy—Mr. Heath.
§ Mr. MolloyOn a point of order.
§ Mr. SpeakerOrder. I understand the point of order which the hon. Gentleman wishes to raise. I have called, however, the Leader of the Opposition.
§ Mr. HeathThe Prime Minister will recall that one of his main objectives in setting up the Department of Economic Affairs, which he outlined in his speech at Swansea, was to encourage the production of import substitutes.
§ The Prime Ministerindicated assent.
§ Mr. HeathI am glad to see that he agrees. As the import of manufactured 225 goods has increased by just over 50 per cent since the establishment of the D.E.A., does he not consider this to be sufficient reason for abolishing it?
§ The Prime MinisterNo, Sir. The right hon. Gentleman will realise the very high increase in imports in the two or three years before 1964. The D.E.A. and the Ministry of Technology have been extremely active in encouraging substitutes, particularly in machine tools and in building up our own computer industry, which the right hon. Gentleman had allowed almost to disappear. It was within a few weeks of disappearing altogether when we came into office. The Department and the Ministry have also been active in the chemical industry. The right hon. Gentleman will have cause to be quite pleased with the progress in due course.