§ Q2. Mr. Gwilym Robertsasked the Prime Minister when next he intends to make a ministerial broadcast on Government economic policy.
§ The Prime MinisterI refer my hon. Friend to the reply which I gave to the hon. Member for Norfolk, South (Mr. MacGregor) on 27th July.
§ Mr. RobertsBefore my right hon. Friend makes another of his very effective ministerial broadcasts, will he look at the need to close some of the gaps between the Government's policies and the expectations of the TUC under the social contract? In the light of that, will he also look again at some of the social implications of the public expenditure cuts, at some of the possibilities of extending import controls, and at areas of social advance such as earlier retirement, which could be introduced at minimal cost?
§ The Prime MinisterThe social contract will remain the basis of the Government's policy and we shall endeavour to carry it out as far as we can. On the question of import controls, I have received a very interesting document today, sent to me jointly by the TUC and the CBI—and coming as it does from those two stables harnessed together it clearly needs very careful consideration.
§ Mr. HefferThey are all Tribunites now.
§ The Prime MinisterI am arranging for that careful consideration to be undertaken. As regards the expectations of our people, I remind my hon. Friend and the House of what I said, among other things, in my first broadcast as Prime Minister. I looked it up because I 624 thought that there might be some reference to it today. I said that
despite the measures of the last 12 months, we are still not earning the standard of life we are enjoying.
§ The Prime MinisterI am quoting:
There's no soft option. I don't promise you any real easement for some time to come. There can be no lasting improvement in your living standards until we can achieve it without going deeper and deeper into debt as a nation.That is what I said in my very first broadcast, and I have continued to say it—[HON. MEMBERS: "What are you doing about it?"] We are taking action. If Opposition Members will forget their prejudices for a moment and read the introduction to "The Right Approach", they will see that what is required is not only action from the Government, but action taken by both sides of industry to reverse what "The Right Approach" called the long-standing decline. This is a national problem and Opposition Members should treat it as such.
§ Mr. David SteelOn Tuesday the Prime Minister said that internal differences in the Labour Party were matters entirely for him and nothing to do with the rest of us. Is he aware that that cannot be the case, because the differences in the Government party are highly damaging to the national interest and to confidence abroad? When he next broadcasts, will he tell the country how long he is prepared to preside over this private and unacceptable coalition while the value of our currency plummets?
§ The Prime MinisterI cannot think of any better coalition that could do the job. The thought of the Liberals and the Conservatives attempting against the recent policy announcements by the Conservative Party to try to achieve such a coalition would divide the country hopelessly in two. Unless we make the approach which I outlined in my first broadcast, and which I have repeated today, I believe that we shall not be able to enlarge the manufacturing base of our nation and thus ensure that we obtain the social benefits that we require.
§ Mr. MacFarquharWhen he makes his next broadcast, will my right hon. Friend the Prime Minister give his views on the 625 connection between education and economic performance, and will he confirm the reports that he is about to make far-reaching suggestions about changes in our national system that would involve the training of more engineers?
§ The Prime MinisterMore mileage and column inches have been given to a speech I have not yet made than were given to many speeches I have made. That should be a lesson to all us publicists. Unfortunately, I did not have the wit to start this one.
I think that there is a case for opening a national debate on these matters. [HON. MEMBERS: "Hear, hear."] I am taking advantage of the opening of an extension to Ruskin College, Oxford, which has contributed a great deal to the trade union and Labour movement, to discuss matters which are of great importance to industry and also in a wider sense.
§ Mrs. ThatcherBut is the Prime Minister aware that we agree with a number of his speeches? The trouble is that his actions do not match them. Surely he is aware that the facts show we are facing the most serious economic crisis in the post-war period and that there is a total lack of confidence in sterling. That is where his actions have led. What actions does he now propose to take to restore confidence?
§ The Prime MinisterThe right hon. Lady will find in due course that confidence is a plant that grows very slowly. There is no short-term action that can be taken to repair confidence—which, alas, now extends to the future prospects of the British industrial system. I believe that the pessimism is overdone. As I go round the country visiting factories and seeing the work that is being done I believe that there is a considerable future, because there is a growing realism on both sides of industry in our industrial system that it is possible to overcome the problems that have led to what "The Right Approach" calls the long-standing decline. If we worked on that aspect, confidence would be restored. However, I promise the right hon. Lady that no gimmicks or short-term cuts will achieve our aim.
§ Mrs. ThatcherBut there appears to be realism everywhere except in Her 626 Majesty's Government. Why does the Prime Minister not now follow the policies of these Governments which have a surplus to lend us in order to bail us out?
§ The Prime MinisterThe policies of various Governments depend on their internal circumstances. For example, the United States does not depend on foreign trade to the extent that we do. Her foreign trade is an addition to her gross internal product. The United Kingdom depends on exports, and it is in that respect that we must push ourselves much further and faster. Obviously, in answering a supplementary question I cannot instance other countries and indicate all the differences. But I believe that as the industrial strategy has been agreed by both sides of industry—and I hope that it will not receive discouragement from the Opposition, even if they cannot find anything helpful to say—that is the best way to march on the long road back.