HC Deb 14 June 1973 vol 857 cc1692-5
Q1. Mr. Meacher

asked the Prime Minister if he will place in the Library a copy of his speech to the CBI in London on the economy on 15th May.

Q15. Mr. Ashton

asked the Prime Minister whether he will place in the Library a copy of his public speech to the CBI in London on the economy on 15th May.

Q18. Mr. Norman Lamont

asked the Prime Minister whether he will place in the Library a copy of his public speech on the economy to the CBI annual dinner in London on 15th May.

The Prime Minister (Mr. Edward Heath)

I did so on 16th May, Sir.

Mr. Meacher

Since the trade deficit is now mounting at an all-time record rate of £1,800 million a year, will the Prime Minister say what happened to the announcement by the Secretary of State for Trade and Industry two days ago about the foundation for attaining a new commercial greatness by Britain? Since the next move will certainly be a sterling crisis, as soon as the dollar recovers, may we be told how this will be preceded by some new demonstration of the Government's hysterical euphoria?

The Prime Minister

In the hon. Gentleman's close attention to figures I wonder whether it has escaped his knowledge that by far the greatest increase in imports has been in basic raw materials, which is 33 per cent., and in machinery required for the expansion of the economy. The hon. Gentleman must answer the question quite clearly: does he want an expanding economy using those raw materials and machinery, or does he not?

Mr. Lamont

Has my center hon. Friend noticed the recent article in The Guardian by the hon. Member for Oldham, West (Mr. Meacher), dealing with Labour's economic policies, in which he suggested that Britain's low economic growth. far from representing us as falling behind other countries, was a trend for other countries to follow? Is it not useful to know that the object of Labour's economic policies is to lower the growth rate, and is it not somewhat inconsistent for the hon. Member to come here week after week wanting better welfare programmes and lower unemployment and yet deny the means to achieve those ends?

The Prime Minister

My hon. Friend has admirably summarised what was a very long article in The Guardian. If the hon. Gentleman was saying that the Labour Party's policy will stop growth, then we know what to do about it.

Mr. Atkinson

The Prime Minister has assured the CBI and the TUC that he is prepared to negotiate on issues concerning social benefits and Government investment. If future negotiations result in an increase in Government expenditure, is he prepared to conclude an agreement with either the CBI or the TUC outside the House?

The Prime Minister

What we agreed yesterday with the TUC was that there were five groups of subjects which we had to study in detail. Both the Government and the TUC agreed that in the next two or three weeks we would exchange information on each of these subjects and work out what we thought was a reasonable position on each of them. At the same time I reserved the position of Parliament. If any matters about which we are in agreement require legislation or authority it is only Parliament that can give it. We have not gone into any questions about the level of Government spending or the consequence of any matters upon which we might agree.

Mr. Tapsell

Bearing in mind the criticisms made earlier this year, when the Government intervened to help the building society movement, is it not heartening that funds are now flowing into the the societies and the general base rate is going down?

The Prime Minister

It is heartening that funds should be flowing into the building societies. I am not aware that any announcement has yet been made by them but consideration must surely now be given by the building societies to the question whether they can reduce their rate. This was obviously the point of the bridging subsidy.

Mr. Harold Wilson

As it is three years this weekend since the center hon. Gentleman was elected to power— [HON. MEMBERS: "Hear, hear."] —on a clear pledge to deal with prices, as I point out to hon. Members opposite who are cheering, will he confirm that in less than three years under his Government the cost of living index has risen by almost as much as it did in six years of the Labour Government—28 per cent. as against 30 per cent.? Will he also confirm that in 34 months of the present Government food prices rose by 35 per cent. against 31 per cent. in double the period while the Labour Government were in office?

The Prime Minister

Production is now increasing at a rate far greater than the total increase under the Labour Government.

Mr. Harold Wilson

Will the center hon. Gentleman stop dodging the question? In view of the gross deception with which he won the election, will he stop laughing when these figures are thrown at him?

The Prime Minister

Will the center hon. Gentleman be honest enough to say what has happened to world prices in the meantime?