HC Deb 18 December 1975 vol 902 cc1642-6
Q3. Mr. Tim Renton

asked the Prime Minister whether the public speech by the Chancellor of the Exchequer to the Institute of Export in London concerning economic matters on 3rd December represents Government policy.

Mr. Edward Short

I have been asked to reply.

Yes, Sir.

Mr. Renton

Why should Germany and the United States of America run the risk of increasing their own inflation, as the Chancellor of the Exchequer suggested in that speech, to bail Britain out of its balance-of-payments difficulties—difficulties caused largely by the present Government's supine weakness? Why should other countries take that action when the Labour Government have started to introduce protectionist measures?

Mr. Short

There is general agreement that the United States and Germany are in a position to take such action. We are not yet in that position.

Mr. Madden

When do the Government expect an upturn in world trade to benefit the United Kingdom?

Mr. Michael Latham

Not next week.

Mr. Short

Certainly not next week. We hope that that will happen certainly towards the end of the coming year.

Mr. Whitelaw

Does the right hon Gentleman agree that on this and other questions it is now pointless his trying to explain what his right hon. Friend the Chancellor of the Exchequer said? Is it not a fact that the Labour Government will have to spend their Christmas Recess eating words uttered in recent speeches since the Government's industrial strategy of backing winners, announced at Chequers, has been totally reversed—to use a famous phrase, in weeks rather than months?

Mr. Short

If we are talking about eating words, the right hon. Member for Penrith and The Border (Mr. Whitelaw) has a great deal of eating to do—unless he completely ignores and turns his back on the policy pursued by a Conservative Government of which he was a prominent member. The whole Opposition Front Bench have chosen completely to disown that Government and therefore the right hon. Gentleman must cat his own words.

Mr. Whitelaw

It is not for me to eat my words. It is for the Labour Government, of which the right hon. Gentleman is a prominent member, to eat words uttered by them even in the last few weeks.

Mr. Short

There is no conflict between the solution put to the House on Chrysler and the strategy agreed at Chequers—[HON. MEMBERS: "Oh."] There is no conflict whatever. If some suggest that it is good industrial strategy to allow a major part of one of our major exporting industries to collapse suddenly, I would reply that that is not our idea of strategy.

Q5. Mr. Norman Atkinson

asked the Prime Minister whether the public speech made by the Chancellor of the Exchequer at the Institute of Export on 3rd December with regard to import controls represents the policy of Her Majesty's Government.

Mr. Edward Short

I have been asked to reply.

I refer my hon. Friend to the reply which I gave earlier today to the hon. Member for Mid-Sussex (Mr. Renton), Sir.

Mr. Atkinson

But in view of the Chancellor's use yesterday of Treasury cosmetics, is it not now painfully clear that the Government have no intention of reflating the economy or of reducing the level of unemployment until such time as both the borrowing requirement and the rate of inflation are more than halved? Will my right hon. Friend explain whether this involves a rejection by the Government of Socialist planning concepts, or whether they are now in the grip of international credit opinion which is preventing them from pursuing policies that would allow us to reduce the level of unemployment? Will he clear up this point?

Mr. Short

Without going into the latter part of my hon. Friend's supplementary question, I must tell him that we have every intention of taking concrete steps to reduce the level of unemployment. A number of those steps were announced yesterday and a number have been announced on previous occasions. We shall go on searching for ways in which to reduce the figure. My hon. Friend is right to say that we have no intention of reflating the economy so long as that would have extremely harmful consequences.

Mr. Hugh Fraser

Following yesterday's measures, will the Government seriously consider issuing an order for nationalised industries to "Buy British"? Does he not agree that far too many nationalised industries are buying abroad when it is totally unnecessary? I quote one example—the CEGB's purchase of Swedish equipment which could be manufactured in this country—indeed, in the town of Stafford.

Mr. Short

A great many hon. Members would agree with the right hon. Gentleman that a great deal more could be done in that direction. I hope that the nationalised industries will take note of what he said.

Q6. Mr. Pattie

asked the Prime Minister whether the public speech by the Chancellor of the Exchequer to the Institute of Export concerning economic policy on 3rd December represents Government policy.

Mr. Edward Short

I have been asked to reply.

I refer the hon. Member to the reply which I gave earlier today to the hon. Member for Mid-Sussex (Mr. Renton), Sir.

Mr. Pattie

Does the right hon. Gentleman think that it is reasonable for Britain to expect other countries artificially to increase their own internal rates of inflation to accommodate British exports? Does he agree that the speech by the Chancellor of the Exchequer in the context of world trade represents an application by Britain to be considered for charitable status?

Mr. Short

No, not at all. It is reasonable for countries such as Germany and the United States to reflate to some extent, because they are in a position to do so. We are not yet in a position to do so, but when we are, we certainly shall do so.

Mr. Cryer

Does my right hon. Friend accept that much greater action is needed on imports than was indicated by yesterday's package? Does he also accept that import controls on textiles are not likely to have much effect in preventing the loss of 200 jobs a week, which is the present situation? If the Labour Government are trying to produce a planned internal economy, does he not believe that we must examine the import situation and plan ahead rather than to leave imports to the vagaries of the market?

Mr. Short

I appreciate my hon. Friend's problems, because I know his constituency. I believe that yesterday's package was useful, but certainly the Government will keep this matter under review.

Mr. Thorpe

May we take it from the right hon. Gentleman's reply that the Government reject the prophecy by the OECD that this country will have million unemployed by the end of next year?

Mr. Short

The OECD did not prophesy that, but we do not think the figure will rise as high as that.