HC Deb 01 July 1975 vol 894 cc1186-8
Q5. Mr. Molloy

asked the Prime Minister if he will make a statement on his most recent discussions with the TUC and the CBI.

The Prime Minister

I refer my hon. Friend to the reply which I gave to my hon. Friend the Member for Stoke-on-Trent, South (Mr. Ashley) on 24th June.

Mr. Molloy

Will the Prime Minister take careful note of the TUC's six points? Will he reject the monetary solution proffered by some parts of the Conservative Party though not by others, and consider the position of the Leader of the Opposition, who does not know whether she wants it or not?

The Prime Minister

Last week I expressed a welcome in the House, which I am sure is shared by all hon. Members, for the six points put forward by the TUC. It is a very constructive approach to these matters. I have no doubt that after my right hon. Friend the Chancellor of the Exchequer has made his statement, some of these matters will be taken up. I do not think that either the views of the official Opposition or of the "provisionals" below the Gangway are of any interest whatever to the House.

Mr. Lawson

In view of the Prime Minister's constant crowing about our export performance, why is the pound doing so badly? Is there some problem about confidence in the Government?

The Prime Minister

There is no doubt that over the first five months of this year we have reduced the balance of payments deficit to one-quarter of what it was—a 75 per cent. reduction. I have no doubt that some people are daft enough to listen to the hon. Gentleman and to people who talk like him.

Mr. David Steel

In view of the experience of the previous Labour Government in 1966 when there was a concordat called the Declaration of Intent, which involved the TUC and the CBI, will the Prime Minister take note of the TUC's views with interest but remain in charge of the Government of this country?

The Prime Minister

Yes, I fully accept that. Indeed, I have made clear, as my right hon. Friend the Chancellor will—I said this yesterday, when I opened the Royal Show, and on several previous occasions—that the Government will not hesitate to discharge their responsibility. They have the right and the duty to do so in all these matters affecting inflation. The fact that we receive no advice whatever from Opposition parties will not stand in the way of the Government discharging their duty in these matters. We are trying to proceed by consent, which was one of the high failures of the previous Conservative Government.

Mr. Gordon Wilson

At the conclusion of the right hon. Gentleman's present discussions with the TUC and the CBI, will he initiate discussions with the STUC and the Scottish Council (Development and Industry) about their wishes to have economic powers for the Scottish Assembly?

The Prime Minister

The hon. Gentleman will be aware that earlier this year, with a number of my right hon. Friends —it was the first time that this had ever been done by any Prime Minister—I had very long and serious discussions with the STUC. [Interruption.] If anyone wants to claim that he did, he may do so. During those meetings, for the second time this year I also had meetings with representatives of the Scottish Council. Matters relating to the Scottish Development Agency were fully debated in the House last week and the House took a decision on them.

Mr. Ron Thomas

I should like to refer to the matter of exports and sterling. Will my right hon. Friend be good enough to comment on the reports which indicate that the lack of intervention by the Bank of England, or the limited extent of that intervention, and the fall in the value of sterling are part of the Government's overall strategy?

The Prime Minister

These are very technical matters on which hon. Members may have sharply differing views. I do not want in any way to anticipate the statement of my right hon. Friend the Chancellor of the Exchequer.

Mrs. Thatcher

The Prime Minister said again this afternoon that one reason for his delay in taking action was that he wished to proceed by way of consent. Has he now obtained the consent of the TUC and the CBI?

The Prime Minister

I have made clear —and when the right hon. Lady hears my right hon. Friend's statement she will hear—that we are in continuing discussion with the TUC and the CBI. A great deal of progress has been made, but in our view that progress has not yet gone far enough. We believe that it is right for my right hon. Friend to set out the position this afternoon. I am certainly not going to be told by the right hon. Lady, who is not notable for consulting the TUC, or by anybody else at what point we seek to consult and at what point we are supposed to go in for the policies of confrontation which she advocated when she was in government.