HC Deb 28 October 1971 vol 823 cc2072-4
Q6. Mr. Carter

asked the Prime Minister if he remains satisfied with the social and economic progress arising out of Government policies; and if he will make a statement.

The Prime Minister

I have described the progress we have made on a number of recent occasions, for example, in the interview I gave on the B.B.C. programme "Panorama" on 11th October and in my speech to the Conservative Party Conference. Transcripts of both are in the Library of the House.

Mr. Carter

Is the Prime Minister aware that his satisfaction will be widely interpreted as complacency in the face of savage unemployment and falling living standards? After 15 months of divisive Government policies, may I ask him precisely what he means by his concept of "one nation"?

The Prime Minister

There is no justification for the hon. Gentleman's customary accusations. No Government who have reduced taxation—by £1,400 million in the future—with the subsequent impact of that on the economy, can be accused of not trying to deal with unemployment.

Mr. Thorpe

Will the Prime Minister say whether the present unemployment rate is higher or lower than expected, or what the Government have always expected?

The Prime Minister

It has been made plain that no forecast showed that in the face of wage pressures such as we have had in these last two years employers would shed labour to the extent to which they have done.

Mr. Onslow

Does my right hon. Friend agree that one of the main divisive forces in the nation today stems from the failure of many trade union leaders to realise their responsibilities to the country?

The Prime Minister

No, Sir. I do not think it is right in those terms to speak in generalities. Many leading trade unionists are endeavouring to bring home to their members the realities of economic life. This I welcome. I think they also recognise the advantages of the Act which has just been passed.

Mr. Swain

Will the right hon. Gentleman reconcile the answer he gave to my hon. Friend the Member for Bolsover (Mr. Skinner) that unemployment is caused by the lack of markets and will be reduced if we enter the E.E.C., and his answer to the last Question to the effect that high unemployment is caused by the huge wage demands of trade unions?

The Prime Minister

They are not in the least irreconcilable. If employers are trying to keep down costs that, too, has an impact on the number of their employees. The fact that they can keep their costs down enables them to compete effectively in Europe and, with an expanding market there, to give greater employment to people in this country.