HC Deb 02 March 1971 vol 812 cc1389-91
Q1. Mr. Peter Archer

asked the Prime Minister if he will place in the Library of the House a copy of his public speech in Eastbourne to the National Conference of Young Conservatives on 7th February on Her Majesty's Government's policy for industry.

Q6. Mr. Skinner

asked the Prime Minister if he will place in the Library a copy of his public speech on Her Majesty's Government's policy for industry to the Young Conservatives on 7th February at Eastbourne.

Q8. Mr. Arthur Davidson

asked the Prime Minister if he will place in the Library a copy of his public speech on economic matters made to the Young Conservatives in Eastbourne on Sunday, 7th February.

Q9. Mr. Barnett

asked the Prime Minister if he will place a copy of his speech on economic policies to the Young Conservatives at Eastbourne on 7th February in the Library of the House of Commons.

Q11. Mr. Clinton Davis

asked the Prime Minister if he will place in the Library a copy of his public speech to the Young Conservatives at Eastbourne on 7th February, 1971, on Government economic policy.

The Prime Minister (Mr. Edward Heath)

I did so two days later, Sir, on 9th February.

Mr. Archer

I thank the Prime Minister for his attention to this matter. Since in that speech he offered as a criterion for public investment the safety and efficiency of the Armed Services, is public investment not also justified to guarantee the safety and efficiency of insurance funds which carry the money of ordinary people? If it is justified as a rescue operation following a financial collapse, is it not also justified while there are some profits to be made?

The Prime Minister

In regard to the question about insurance, my right hon. Friend the Secretary of State for Trade and Industry will be making a statement after Questions about that specific case. When in that speech I gave criteria I thought I was saying something that must be obvious to everybody in this House, which applies to management, trade unions and Government.

Mr. Davidson

Does the Prime Minister recall that in that speech he issued a stern lecture to all and sundry to get rid of some of their illusions? Could he set an example today by getting rid of the illusion, first of all, that he ever answers a Question in this House satisfactorily, and, secondly, that Governments are never wrong—when all the evidence points to the fact that they are a disaster?

The Prime Minister

The hon. Gentleman used the word "Governments"—in the plural. What I said in that speech was that there were lessons to be learned by Governments on this matter. One is that we cannot secure prosperity by continuing to pour out subsidies at the taxpayers' expense.

Mr. Barnett

Since the announcement on Friday that the Government intend to use investments grants to improve the deplorably low level of investment, may we take it that the Government have now changed their policy? Do they regard it as better than their policy on tax allowances? Why have they changed?

The Prime Minister

The hon. Gentleman has misunderstood the situation, which is that in the interim period investment grants are being phased out and investment allowances are to take their place. What my right hon. Friends the Secretary of State for Trade and Industry and the Chancellor of the Exchequer have done is to advance the payment of the existing investment grant money to improve the liquidity situation. This is necessary because of the state in which companies found themselves following the previous Administration.

Mr. Clinton Davis

Would not the Prime Minister have spoken more profitably on that occasion about some of the illusions he has fostered—for example, the illusion that the policy of the Government will provide "a better tomorrow", or that he would cut prices and unemployment "at a stroke"? Is it not a fact that the right hon. Gentleman suffers from delusions of adequacy?

The Prime Minister

If the hon. Gentleman will address himself to the particular points made in that speech, he will see how over the last few years they have not been acknowledged and that if we address ourselves to them in the future we shall have a much greater chance of prosperity.