§ The Prime Minister (Mr. James Callaghan)I have at present no plans to do so.
§ Mr. AdleyWill the Prime Minister tell the people of Wessex and the House what he would say if he were Leader of the Opposition coming to Prime Minister's Question Time on the day when the Government announce unemployment figures in excess of 1,300,000?
§ The Prime MinisterI would say to the people of Wessex what I would say to the rest of the country, namely, that the figures are unacceptably high, that they are the consequence of economic policies which allowed our monetary system to get out of control, that it is important that we should overcome inflation, and that we should use all possible opportunities through training for our young people to get these figures down as low as possible. If I were Leader of the Opposition, I would go on to say that I therefore give full support to the efforts of the trade unions in their attempt to introduce an incomes policy.
§ Mr. Bryan DaviesWill my right hon. Friend agree that one of the last people to make regular official visits to Wessex was King Arthur, head of the workers' co-operative of Knights of the Round Table? Was it not his function in life to bring light to dark areas of Conservative England?
§ The Prime MinisterYes, Sir, and I think that another frequent visitor was King Alfred. He burnt the cakes, and I am sure that the Leader of the Opposition would never do that.
§ Mr. PriorWhat has happened since October 1974, when unemployment was said by the Government to be coming under control, to lead to the devastating 1356 and intolerable figures that the Government have announced today?
§ The Prime MinisterI think that what has happened is that in September 1973 the increase in the money supply had reached the never before achieved level of 28.5 per cent. under the M3 system. That was inevitably bound to lead to inflation of an unprecedented character. It has done so, and we have now started as a country, I am glad to say, to correct the errors of the last Administration.
§ The Prime MinisterI am giving an answer to the right hon. Gentleman, but I cannot give him an understanding.
§ Mr. WardHas my right hon. Friend seen the Conservative publication Free Nation for 11th June, which puts forward immediate and enormous public expenditure cuts of over £16,000 million? Would my right hon. Friend like to say what effect such cuts would have on our unemployment situation?
§ The Prime MinisterThe cutting of public expenditure now would, of course, lead to additional unemployment. I have made this clear time after time, and I have spoken of the dilemma that will face the country in 1977 and 1978, when it is expected that investment will increase very considerably, thanks to returning confidence. The latest forecast is that companies hope and expect to increase their private investment in new plant and machinery by 15 per cent. If that is so, it will have certain consequences for Government policy.
§ Mr. Norman LamontIf the Prime Minister meets the people of Wessex, what does he think they will think of a Chancellor of the Exchequer who persuades the trade unions against the child benefit scheme on the ground that the Cabinet is against it, and then the very next day persuades the Cabinet against it on the ground that the TUC is against it? Is not this, even by the Chancellor of the Exchequer's standards, an extraordinarily low piece of double-dealing?
§ The Prime MinisterPersonal attacks of this nature are becoming characteristic of the Opposition. The way in which 1357 the discussions on this matter have been held and the approaches made involve no criticism of my right hon. Friend or anybody else. The Government have taken their decision after perfectly sensible and fair discussion.