HC Deb 28 November 1974 vol 882 cc617-9
Q2. Mr. George Gardiner

asked the Prime Minister whether the broadcast by the Chancellor of the Exchequer on 12th November on the subject of his Budget represents Government policy.

Q7. Mr. Wyn Roberts

asked the Prime Minister if the Chancellor of the Exchequer's ministerial broadcast on the Budget on 12th November represents Government policy.

Q10. Mr. Adley

asked the Prime Minister if the public speech on the Budget by Mr. Chancellor of the Exchequer on television on the evening of Tuesday 12th November represents the policy of Her Majesty's Government.

The Prime Minister

Yes, Sir.

Mr. Gardiner

The Prime Minister will recall that that broadcast contained an eloquent appeal for the support of the social contract, which he himself underlined this morning in his speech at his party conference. Does he accept that in fairness to working men and women he should set a time limit during which the pay obligations imposed by the social contract should be seen to apply, before bringing into operation his threatened cuts in public expenditure or increases in taxation?

The Prime Minister

I do not think that is the way to look at this matter. There were no threats of the kind described by the hon. Gentleman. I pointed out this morning—I have already placed a copy of the speech in the Library, anticipating quite a number of questions from hon. Members on both sides of the House—that this is a matter for Government policy, but if such a situation developed, for whatever reason, any Government would have to take appropriate action in relation to taxation, or whatever it might be. But I do not think there is any suggestion of a time limit or clear moment when one can say that a threshold has been passed.

Mr. Skinner

When my right hon. Friend next has discussions with the Chancellor of the Exchequer, will he ask him to draw up the limits of the wealth tax proposals in such a way that they include those people who are presently engaged in hoarding large stocks of food, such as the middle-aged female pretender to the Tory crown, who, hour after hour, day after day, during the last several months has apparently been filching small tins of salmon from the supermarkets, thus taking it out of the pensioners' mouths?

The Prime Minister

There is no ministerial responsibility for pretenders, be they female or otherwise, to certain crowns. I thought that this matter was fairly covered in my speech this morning when I talked about people doing a speculative commodity hedge against inflation.

Mr. Roberts

The Chancellor of the Exchequer said that he wanted to see a vigorous, alert and profitable private industry. With that end in view, does not the Prime Minister think that it would be wise to renegotiate the social contract with a view to bringing in more useful people, such as employers and investors, and putting the matter on a proper White Paper basis, as my right hon. Friend the Leader of the Opposition has suggested?

The Prime Minister

I am sorry to say that when my right hon. Friend the Chancellor used those words they were not original. They were taken from our White Paper on the regeneration of industry. However, this matter has been discussed almost incessantly with employers, with management, and with useful people of all kinds. With regard to investors, as I said at some length this morning, what has been suggested would be very useful, if by investment the hon. Gentleman means injecting capital into industry where it is most needed and not using it for speculative purposes.