HC Deb 29 June 1976 vol 914 cc189-91
Q1. Mr. MacGregor

asked the Prime Minister when he next intends to meet the CBI and the TUC.

The Prime Minister (Mr. James Callaghan)

I refer the hon. Member to the reply that I gave to the hon. Member for Blackpool, South (Mr. Blaker) on 27th May.

Mr. Macgregor

Does the Prime Minister agree that one of the best ways to bolster international confidence in the pound, which is of concern to both the TUC and the CBI, would be for the Government to announce their revised expenditure programmes for next year as soon as possible? Would this not also help to remove the damaging uncertainty that now exists because of all the rumours surrounding these programmes? Will the Prime Minister assure us that an announcement will be made before the House rises?

The Prime Minister

I agree that rumours are damaging in this matter, especially if they are without foundation. Undoubtedly, it is part of the Government's task to strengthen sterling, for a number of reasons that are connected with our domestic situation.

As to public expenditure, I have nothing further to say than I have said so far on this matter. The review is proceeding in an orderly manner and the House will be informed of the Government's deliberations in due course.

Mr. Watkinson

When my right hon. Friend next meets the CBI and the TUC, will he discuss the problem of investment? Has he noticed reports in City papers and financial journals to the effect that there is a growing tendency for companies to send money abroad rather than retain it in this country? Does he agree that this haemorrhage cannot continue if we are to bring about the investment boom that we so desperately require?

The Prime Minister

There is a falling away of investment again this year. According to the estimates, it is likely to be lower than last year. But the forecasts show that the major companies involved expect to begin a new programme of investment which will substantially increase in 1977. Indeed, the last forecasts, for what they are worth—I do not wish to imply anything more than that, because they are all estimates—indicate that companies expect to have an increase of 15 per cent. in their investment in new plant and machinery next year.

With regard to the resources available to companies for this purpose, clearly they will take their own decisions on whether they think it is better to invest here than abroad. But I have no doubt that if we are to overcome our present economic difficulties the investment should take place here.

Mrs. Thatcher

Before the Prime Minister sees the TUC again, and as the TUC represents about 3 million women members, will he tell the House whether it was the TUC that told the Government to delay the child benefit scheme or the Government who asked the TUC to agree to postponing it for three years?

The Prime Minister

The right hon. Lady might have taken part in the debate yesterday if she felt so strongly about it. She could have put her questions then. The matter was fully discussed in the House yesterday, and the Conservative Opposition did not have the guts to vote.

Mrs. Thatcher

The question was not resolved yesterday. That is why I asked it specifically. May I say to the Prime Minister that avuncular flannel will not do?

The Prime Minister

I have often thought of the right hon. Lady in many ways, but never as my niece. As to our relations with the TUC, I do not propose to disclose these in this House. The relations between us depend partly upon confidentiality being preserved, and the fact that it has been broken does not help relations between us.