HC Deb 15 July 1975 vol 895 cc1260-4
Q1. Mr. Hurd

asked the Prime Minister whether he will place in the Library a copy of his public speech on economic matters at the Royal Agricultural Show at Stoneleigh on 30th June.

Q2. Mr. Skinner

asked the Prime Minister whether he will place in the Library a copy of his public speech at the Royal Agricultural Show on 30th June on economic matters.

Q3. Mr. Peter Morrison

asked the Prime Minister whether he will place in the Library a copy of his public speech on economic matters at the Royal Agricultural Show at Stoneleigh on 30th June 1975.

Q5. Mr. David Steel

asked the Prime Minister if he will place in the Library a copy of his public speech on economic matters made at the Royal Agricultural show on 30th June.

Q10. Mr. MacGregor

asked the Prime Minister if he will place in the Library a copy of his public speech on economic and agricultural matters at the Royal Agricultural Show at Stoneleigh on 30th June 1975.

The Prime Minister (Mr. Harold Wilson)

I did so later that day, Sir.

Mr. Hurd

Does not the Prime Minister agree on reflection that in that terrible speech and its successors he once again missed a great opportunity? Is he aware that many millions of people in this country who now realise the seriousness of our situation are not in the least interested in his manoeuvres and compromises as Leader of the Labour Party but are still waiting desperately to hear the authentic voice and language of a Prime Minister addressed to the nation as a whole?

The Prime Minister

If the hon. Gentleman thinks that I failed to speak out on that occasion and on several others in that fortnight, I should remind him of what I said. I said: The Government will take whatever action is necesssary to fortify the efforts which industry is so plainly making, as we have witnessed by the deep sense of urgency shown in this past week and more from the management confederation and from the Trades Union Congress. I then rejected the kind of solutions that have been put forward in some quarters, though not by the Conservative Front Bench. I said: The solutions we apply, and they will not lack courage and determination, must above all be workable. That is what we did last Friday.

In relation to manoeuvres I was concerned—despite the chivvying of Conservative Members—to get something broadly acceptable throughout industry. That is what we have achieved.

Mr. Skinner

Why was it that my right hon. Friend changed his mind so suddenly after making his speech at the Royal Agricultural Show? Was it because a group of politically motivated sheikhs was threatening to withdraw its Arabian gold? Is it not sad—tragic—that we have a Labour Government headed by my right hon. Friend who are prepared to travel the same dismal, dreary course that was travelled between 1966 and 1970? Faced with either changing the system or propping up capitalism, is it not a fact that the Government have now decided to placate once again the natural enemies of the Labour movement?

The Prime Minister

We did not change the policy. The policy announced last Friday was what we were working on. We wanted to get agreement on it. My hon. Friend said that we are prepared to travel the same course as was travelled between 1966 and 1970. It was very clear from my statement last Friday that we are travelling the same course as the organised trade union movement of this country. I am not sure whether my hon. Friend is travelling the same course.

Mr. Morrison

How does the Prime Minister reconcile his rejection of the use of unemployment as a weapon against inflation with the passage in the White Paper which states that excessive pay settlements will affect unemployment in the industry concerned"?

The Prime Minister

Because we reject the deflationary proposals of the monetarists on the benches opposite who may or may not have a majority of influence in the Conservative Party. We have rejected the idea that has been put forward—not specifically by leaders of the Conservative Party—in sections of the Press that we deliberately ran down the economy to a low level of employment. The whole world is facing an increase in unemployment today. Unemployment has risen less in Britain than in most other countries. We reject it as an instrument of policy.

Mr. Steel

Will the Prime Minister explain one part of the White Paper which was foreshadowed in the speech and has since appeared before the House, namely, what happens if a firm refuses to pay more than £6 a week in increased wages to its working force and then has industrial action taken against it?

The Prime Minister

I made plain last week that the firm would have the whole organised trade union movement on its side. [Interruption.] Some hon. Members may laugh about that, but if they had paid a little more attention to getting such an arrangement a few years ago there might have been a very different situation today. Secondly, as I said in my statement last Friday, if there were a real threat to the policy which we have announced, we would not hesitate to introduce the statutory powers—we would do so with great regret, and I think that is true of many Opposition Members—that we would feel to be necessary.

Mr. Tomlinson

Does my right hon. Friend agree that in the last few weeks the trade union movement has moved further towards voluntary agreement than ever before and that the trade union movement and the country would not deal lightly with Opposition Members who seek to exploit the nation's economic difficulties for partisan advantage?

The Prime Minister

Sir, it is certainly true that the TUC General Council last week went further than the TUC has ever gone in peace or in war, as I said on Friday. The TUC has done that, and I should have thought that hon. Members on both sides of the House would recognise that achievement. Opposition Members who laugh about this are beneath contempt. The whole country, including many who voted for Opposition Members, will be shown to support the policy announced by the Government last Friday, and they will be as anxious as we are to see what alternative policies the Opposition can agree upon.

Mr. Tapsell

Has the right hon. Gentleman noted that the speech in which he rather obliquely foreshadowed the White Paper which has subsequently been published was greeted almost universally at home and abroad with some satisfaction as re-establishing the credit of sterling internationally but also with the feeling that the Government's policies would be immensely strengthened if they were accompanied by the announcement of cuts in public expenditure?

The Prime Minister

I refer the hon. Gentleman to what is said about public expenditure in the White Paper, which I hope the House will be debating next week. If the hon. Gentleman wishes to pursue that matter and catches your eye, Mr. Speaker, I am sure he will have some valuable considerations to put before the House. Opposition Members at the weekend talked about cutting expenditure. What we should like to see in advance of the debate is some thought being given by the Opposition to precisely what expenditure they would cut.

Mr. Torney

I have read the speech which the Prime Minister made at Stoneleigh in which he expounded at great length on the subject of the expansion of home food production. Will my right hon. Friend please inform the House what steps he proposes to take to ensure that adequate financing is available to support what he said at Stoneleigh about the expansion of food production in Britain?

The Prime Minister

My hon. Friend, who is chairman of an important agriculture group in the purlieus of the House, is absolutely right. The main part of my speech was about agriculture. I was referring to the White Paper which was published by the Government earlier this year and to the help to be given under that White Paper. The House debated these matters yesterday.

Mrs. Thatcher

May I ask the Prime Minister about a reply which he gave to a supplementary question by the hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel)? Are we to understand that if an employer is driven out of business because he carries out Government policy on the £6 pay limit, he can expect no protection whatsoever from the Government?

The Prime Minister

I made clear that if the policy is in danger—we hope that it will not be—we shall not hesitate to take legislative action. The right hon. Lady will be aware that there has been some discussion in the Press about the possibility of co-operative action among employers on this matter. I do not know what will come of that, but I have made clear that if there is a concerted attack against the policy announced in the White Paper, the Government will not hesitate to introduce further legislation to deal with the situation.

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