HC Deb 18 November 1976 vol 919 cc1562-5
Q3. Mr. McCrindle

asked the Prime Minister what are his official engagements for 18th November.

Q7. Mr. Norman Lamont

asked the Prime Minister whether he will list his public engagements for 18th November.

The Prime Minister

This morning I presided at a meeting of the Cabinet, and I shall be having meetings with ministerial colleagues and others.

Mr. McCrindle

If the Prime Minister and the Cabinet continue to find difficulty in the taxation of short-term benefits, will the right hon. Gentleman tell the House and the country whether, as an alternative, we can look forward to the raising of the tax threshold in the forthcoming package of economic measures, thereby returning an incentive to the less-well-paid?

The Prime Minister

I do not intend to be discussing that matter either in the Cabinet or with my ministerial colleagues or others today.

Mr. Lamont

When the Prime Minister is fulfilling his engagements, may be not bump into some of the visiting officials of the IMF? If so, will he tell them whether, if he had taken up the job he once wanted himself as managing director of the IMF, he would seriously lend money to a country whose Chancellor of the Exchequer makes the pathetic statement that the British people would rather borrow more money than have a reduction in their living standards? Why do the Government always use the excuse of borrowing money for running away from the difficult decisions that have to be made?

The Prime Minister

As a matter of history, if it be of any significance, it is true that I was approached by the former Conservative Chancellor of the Exchequer—who presumably had sufficient confidence in my abilities to believe that I might have filled that post—but there were other difficulties. I am glad that it did not come off, or I should not have had the opportunity of dealing with the hon. Gentleman now.

But to deal with the major part of the question, the International Monetary Fund officials, whom I do not expect to bump into today, are conducting their inquiries and discussions in the normal way. There is little doubt that the loan will be forthcoming, and that will he of very great assistance to us.

Mr. Nicholas Winterton

Yet another one?

The Prime Minister

Yes, yet another one—to try to make up for the deficits that the hon. Gentleman's party left. I see that I have to repeat the information for the sake of the hon. Gentleman. His party's Government entered office with a surplus on the balance of payments and they left with a deficit and a vast increase in the borrowing requirement and in the money supply. All these things we are now coping with.

But as to the future, in a rational atmosphere there is no reason why a country should not borrow against its assets, if by its economic policies it has a good opportunity of coming through. As long as we maintain the existing policy of relying on an export-led growth, of keeping a cash control over public expenditure and of putting the needs of industry first, there is every reason why we should see our way through this temporary period into the 1980s.

Mr. Thorpe

When the right hon. Gentleman's ministerial colleagues are meeting with him today, may we hope that they will be reviewing all his more recent speeches in order to give them greater clarity and effectiveness—in particular, his remark at the Guildhall that any increase in oil prices would be disastrous for the world at large? Will he agree, that being so, that it is essential that the North-South conference, meeting in Paris, should not be adjourned as has been suggested but should meet before OPEC meets, and that there should be some collective view from those who are the buyers of oil by which they can bring some influence to bear upon those who are selling the oil?

The Prime Minister

I agree with the right hon. Gentleman's point that a substantial increase in the price of oil—or, indeed, any increase in its price—is likely to be disastrous for the poorest countries and will hit the economies of even the better-off countries. I am not sure that it would be right to make a link between the CIEC Conference and oil prices. Although oil and energy is one aspect of it, the CIEC is dealing with a far wider problem. We want to make a constructive reply to the developing countries at the Conference on International Economic Co-operation, in relation both to what is called a common fund and other matters. I hope that this matter will be discussed by the Heads of Government when we meet at The Hague at the end of this month.

Mr. Kilroy-Silk

Will my right hon. Friend take time to reflect upon the fact that the Opposition, when rooting out so-called abuses in the Welfare State, never once made mention of the £900 million of unpaid surtax, corporation tax and capital gains tax which is, in effect, being stolen from the Treasury and the ordinary wage earner?

The Prime Minister

I am sure that there is a great deal of unpaid taxation, and I hope that the Inland Revenue follows it up. If that is done quickly, it will certainly lessen the borrowing requirement that we shall otherwise have.