§ Q1. Mr. Canavanasked the Prime Minister what subjects he proposes to discuss at his next meeting with the STUC.
§ The Prime Minister (Mr. James Callaghan)I expect to discuss a wide range of issues affecting the Scottish economy.
§ Mr. CanavanBearing in mind the deep concern within the Scottish TUC about the effects that further cuts in public expenditure would have on the already intolerable total of 150,000 unemployed in Scotland, will my right hon. Friend give a firm assurance to the whole Labour movement in Scotland and elsewhere that it is his intention in future to pursue more Socialist policies which have more in common with the Socialist principles and traditions of Keir Hardie than the sellout coalition principles and suggestions of people such as Ramsay MacDonald and Harold Macmillan?
§ The Prime MinisterThe Government will continue to pursue the policies on which we fought and won the last General Election; that is to say, to conquer inflation, as our first—[Interruption.] Hon. Members seem to have lunched very well today—to conquer inflation as our first priority and to deal, through that, with industrial regeneration, which is absolutely essential for putting our economic affairs on a sound foundation.
§ Mr. Gordon WilsonIs the Prime Minister aware that we on the SNP Bench would much prefer a General Election in Scotland to a coalition, which would be unhelpful to any of the conditions in Scotland? Is he also aware that the gross domestic product in Scotland has risen in real terms by some 13 per cent. this year as a result of supplies of oil coming ashore? What is the Prime Minister going to do to plough back the benefits of that resource into Scotland in order to create more jobs for the STUC and others?
§ The Prime MinisterOn the political aspect of coalition, I have not yet detected much sense of enthusiasm for it anywhere except in the hearts and minds of those who were once joined with us 1652 but have now left. As far as I am concerned, I have stated the basis upon which I am Leader of this party, and will continue to remain Leader of this party. On no other basis do I remain here.
In respect to Scotland's GDP it is true that this is reflected in a number of ways. I understand that for the first time the average earnings of manual wage earners in Scotland are now exceeding those of England, which is a very satisfying feature. [Interruption.] It is satisfying if we care for the unity of the United Kingdom. In that sense what is important is that Scotland, like Wales or any other part of the United Kingdom, should not feel that it is being treated adversely. For years Scotland has rightly felt that the level of wages in Scotland has been below that of England. Now they are slightly ahead, although not so much as to prompt a breakaway in the North-West, or anywhere else. There is now much greater equality between Scotland and England than there ever was before, and I believe that that helps the unity of the United Kingdom. I shall hope to have the hon. Gentleman's help in making this clear to the Scottish people.
§ Mr. RifkindWhen the Prime Minister next meets the STUC will he discuss with it the report in Tuesday's Scottish Daily Express that the shipbuilding industry board has recommended to the Government that a necessary consequence of the nationalisation of the shipbuilding industry is that 2,000 jobs in the West of Scotland must be axed? Will the Government even now drop this measure, in order to prevent a further escalation in unemployment both in Scotland and the rest of the United Kingdom?
§ The Prime MinisterI hope that the hon. Gentleman, who is usually a fair controversialist, will not relate the number of jobs in shipbuilding to the act of nationalisation, because he knows, as everyone in the House does, that it is only through Government support that a great many jobs are now being safeguarded in the shipbuilding industry. The act of either dropping the Bill or passing it will not affect the economic prospects of the world's shipbuilding industry—[Interruption.] Do hon. Gentlemen really need every syllable spelled out to them? I am beginning to fear that that is true, and that we have to start a long way back.
1653 Hon. Gentlemen know perfectly well that the economics of the world shipbuilding industry will not be altered by this measure. What we have to undertake is a Bill that will ensure as far as possible that the national responsibility for shipbuilding, which we must preserve in these islands—islands as we are—is properly co-ordinated with our job prospects, and that we intend to do.
§ Mr. DalyellWill the Prime Minister talk seriously to the STUC about the point at issue in tonight's opposed Private Business, namely, whether millions of pounds of public money should go into a green fields refinery site at Nigg if there is no demand?
§ Mr. William RossIt has already said that it supports it.
§ The Prime MinisterI would be happy to discuss all these matters with the Scottish TUC if it raised them with me, but I do not think I can lay down the agenda here this afternoon.