HC Deb 14 December 1971 vol 828 cc241-2
10. Mr. Parkinson

asked the Chancellor of the Exchequer what is the total amount of accelerated Government expenditure and special tax remissions which the Government have introduced to increase employment.

Mr. Barber

General taxation reductions amounting to £1,400 million in a full year; £150 million over two years for accelerated depreciation; and £450 million in extra public expenditure up to 1974–75—not counting the RB211 and Rolls-Royce (1971).

Mr. Parkinson

Would my right hon. Friend agree that this record presents a startling contrast with the record—

Mr. Heffer

Planted!

Mr. Parkinson

No; this is an entirely spontaneous Question, not at all spurious. Would my right hon. Friend agree that this presents a startling contrast with the record of the Labour Party when it was in Government when it deliberately set out to deflate the economy and to create unemployment? Does it not give the lie to the allegations that we as a party do not care about the consequences of our policies?

Mr. Barber

My hon. Friend has made a very good point.

Mr. Taverne

Does not the total result—having regard to unemployment—show that the whole trend of the Government's policy has been misdirected? Does it not further show that the public expenditure cuts announced earlier and the charges imposed were unnecessary?

Mr. Barber

No, Sir. The cuts made in 1970 and the charges announced in the autumn of 1970 represented a wholly justified change in public expenditure priorities, as we explained. As to the policies we have pursued over reductions in taxation and increases in public expenditure, I shudder to think of the level of unemployment we would have now if we had not taken such steps.

Dame Irene Ward

Does my right hon. Friend recollect that he promised to help me draft a Parliamentary Question to ascertain what particular projects the increased public expenditure will produce? Does he remember that he said that it was a very good Question and would help me with it? Is he aware that so far I have not had a reply? Can he tell me when I shall be able to put the Question down?

Mr. Barber

The reason why my hon. Friend has not had the reply is that she has not yet put down the Question, but in fairness to her I should say that the reason why she has not put down the Question is that, although I have drafted it for her, I have not yet sent it to her. It will come later today.

Dame Irene Ward

On a point of order. Could I make it clear that I rang up and asked the Chancellor if he would let me have a Question—

Mr. Speaker

Order. The telephone conversations of the hon. Lady are not matters of order.

Mr. William Hamilton

Reverting to the original Question, can the right hon. Gentleman say how we are getting on with increasing employment?

Mr. Barber

It was implicit in what I said earlier that the present Government have done more than any other Government to increase demand and to create employment.