HC Deb 28 April 1977 vol 930 cc1480-3
Q1. Mr. McCrindle

asked the Prime Minister what are his public engagements for 28th April.

Q2. Mr. Michael Morris

asked the Prime Minister if he will list his engagements for 28th April.

Q3. Mr. Pattie

asked the Prime Minister if he will list his engagements for 28th April.

The Prime Minister (Mr. James Callaghan)

This morning I presided at a meeting of the Cabinet. In addition to my duties in this House, I shall be holding further meetings with ministerial colleagues and others.

Several Hon. Members

rose

Mr. Speaker

Order. I intend to call first the three hon. Members whose Questions were answered.

Mr. McCrindle

Has the Prime Minister had time today to reflect on the slogan "Let's go with Labour"? With 5.9 per cent. unemployed, prices rising at nearly 20 per cent. and now 1 million days lost through industrial action last month, can the Prime Minister tell us where exactly it is that we are going with Labour, and will he consider not taking us there?

The Prime Minister

I am glad to say that under the wise and beneficent guidance of this Government the country is going in the right direction, which is in marked contrast to the fortunes of the last Conservative Government. The minimum lending rate is steadily coming down. It is now, I believe, 3¾ per cent. lower than it was when the Tories left office, and that in itself must be some incentive for investment. I am glad to say also that the money supply is now under full control, in contrast to the great extravagance in which the previous Chancellor indulged. With those factors moving in the right direction, together with exports, and the reduction in building society interest rates, there is no doubt that we are moving along the path that I have explained so often, and progress is being made in the right direction.

Mr. Michael Morris

Will the Prime Minister make time to speak to those exporters, remind them that he is still looking for export-led growth, and explain why his Government have cut back by 25 per cent. the joint venture schemes affecting the engineering industry, boat building, shoes and, indeed, almost every exporting industry, and also why he has more than quadrupled the prices of the supply of services from Government Departments to the nation's exporters?

The Prime Minister

I think that I am correct in saying that exports went up by 3½ per cent. in the last quarter. That rate of increase—although I should like to see it higher, as everybody would—is an example of progress in the right direction. Encouragement was given to exporters in the Budget by the arrangements that my right hon. Friend the Chancellor announced for the non-taxation of expenses incurred when on overseas visits and in many other ways. The hon. Gentleman will find, if he consults exporters, that they believe that the Government have done a great deal to make exporting profitable and, so far as possible, easier than it was before.

Mr. Pattie

Does the Prime Minister agree with the Lord President's assertion and vision of a Socialist republic in Britain—and, if so, by what date?

The Prime Minister

My right hon. Friend has told me that the answer is "Not next week"

Mr. Fitt

Will my right hon. Friend consider commenting at some time today on the serious situation which now exists in Northern Ireland and which is liable to deteriorate over the weekend, in that a number of forces, legal and illegal, are attempting to defy the wishes of the Gov- ernment and this Parliament? Will my right hon. Friend make clear that the Government will not allow themselves to be blackmailed or bullied by the forces now attempting to do so?

The Prime Minister

I am ready to take the opportunity afforded me by this Question to say that the Government have considered this matter, both today and on earlier days. I have had discussions with the Secretary of State. There is no doubt that my hon. Friend is correct in saying that, if such a strike were to take place it would have the most serious impact on life in Northern Ireland. It should be noted by the people of Northern Ireland that the proposed strike has met with widespread condemnation from many who normally are not in association with one another. I believe that every major political party, perhaps with the exception of the party led by the hon. Member for Antrim, North (Rev. Ian Paisley), has condemned the proposed strike.

I ask those who are proposing it to discontinue their efforts and not press ahead with the strike. If it goes ahead, I ask those who are inconvenienced by it to get to work if they can. Undoubtedly; there will be very considerable interruption, and probably some hardship, if essential services are dislocated and interfered with. Of course, the Government cannot totally prevent that hardship, but I want the House and the people of Northern Ireland to know that we shall take all possible steps to minimise that dislocation and to keep essential services going in order that those who strike in this way cannot by that action bring about the con sequences which they wish.

My right hon. Friend the Secretary of State will be going to Northern Ireland tomorrow. I ask all the people in that country, of whatever persuasion, to recognise the seriousness and adverse consequences of such a strike and to do their best either to thwart it or, if it takes place, to overcome it and to pursue the normal life of the Province as far as possible.

Mrs. Thatcher

May I briefly support what the Prime Minister said?

May I then revert to the question asked by my hon. Friend the Member for Brentwood and Ongar (Mr. McCrindle)? If the Prime Minister is so pleased about the way things are going, will he explain why, ever since the Labour Government have been in office, their record on inflation is four times as bad as that in West Germany, twice as bad as in France, and even worse than that in Italy?

The Prime Minister

We have debated these issues very often and, no doubt, will continue to do so. I repeat again that the rate of inflation is the most important problem with which the Government have to deal. The steps we have taken are overcoming that high rate, as I think the Opposition know. Inflation will undoubtedly fall again during the second half of this year and the first half of 1978—[HON. MEMBERS: "When? How?"] We shall have to wait and see, shall we not? As the vote of no confidence failed, we certainly will wait and see.

Mr. Molyneaux

With regard to the rumours circulating in Northern Ireland, is the Prime Minister aware that we in the Ulster Unionist Party are pledged to operate within the parliamentary processes? Is he aware, further, that we have already dissociated ourselves from all the proposed and rumoured breaches of the law and from any form of unconstitutional or illegal activity?

The Prime Minister

I am aware of that, and I am sure that the people of Northern Ireland will take note of what has been said today across what I might call the divide—that is to say, that persons of all opinions and all creeds are taking the view that a strike would be most harmful to the people of Northern Ireland, and, what is more, part of it certainly could be illegal if there were any attempt to use para-military action.

We could be facing a most grave situation in Northern Ireland. I am very happy that so many hon. Members of all persuasions are ready to support the efforts that the Government must make, both to overcome any attempt at bringing down lawful authority and to ensure that the life of the population goes on.