§ Q2. Mr. Barnettasked the Prime Minister if he will appoint a Minister with special responsibility for explaining the Government's economic policy.
§ The Prime MinisterThis falls within the responsibility of my right hon. Friend the Chancellor of the Exchequer.
§ Mr. BarnettAs the Prime Minister will have heard, his back benchers are not terribly happy about that. As the Chancellor of the Exchequer did not bother to explain it today, would the Prime Minister take it upon himself to tell us whether it is Government policy to reduce monetary supply, which he apparently was complaining about the other day, and what effect he expects this to have on the level of employment?
§ The Prime MinisterI welcome the hon. Gentleman to his new place on the Front Bench. I hope his back benchers were pleased with it. My right hon. Friend the Chancellor of the Exchequer, in calling for 1 per cent. additional deposits, is obviously using a form of control of monetary supply.
§ Mr. CantIf the Prime Minister does not feel it desirable to appoint a special Minister, would he at least bring the Governor of the Bank of England into the general circle of his influence? Would he remind the Governor of the Bank of England that it is more important to control monetary supply in the next 12 months and provide a good gilt-edged market for redemption of £1,700 million worth of Government securities?
§ The Prime MinisterThe Governor of the Bank of England has a constitutional position which was settled under the Act introduced by the Labour Government in the late 1940s. I am sure he is well aware of the point the hon. Gentleman has made.
§ Sir G. NabarroAs a successful economic policy depends in large measure on further expansion of invisible exports, will my right hon. Friend undertake to consider the Queen's Award for Members of Parliament?
§ The Prime MinisterBroadly speaking, the Queen's Award goes for direct rather than indirect effort. I do not wish to see any of my colleagues in this House directly exported.
§ Mr. MoyleWould not the right hon. Gentleman agree that if such a Minister as suggested were appointed, one of the first things he could do would be to explain whether the Government feel that the settlement reached for hospital workers is appropriate for lower-paid workers in other sections of industry in the absence of any other criteria?
§ The Prime MinisterThe provision of criteria by the Labour Government was not very successful. Each of these negotiations should be carried on by the appropriate machinery.
§ Mr. SheldonCan the right hon. Gentleman give an assurance that any value-added tax he introduces will not apply to food?
§ The Prime MinisterThat was the statement made when we were in Opposition, and any question of a value-added tax was a matter which was to be decided at a future date when we were to be in Government, and that remains the position.