§ Q2. Mr. Skinnerasked the Prime Minister what are his official engagements for 15th February.
§ Q4. Mr. Robinsonasked the Prime Minister if he will list his official engagements for 15th February.
§ The Prime MinisterThis morning I attended the memorial service for Lord Avon. In addition to my duties in this House, I shall be holding meetings with ministerial colleagues and others, including the CBI and Signor Colombo, the former Italian Prime Minister.
§ Mr. SkinnerWill my right hon. Friend be meeting his political advisers today? If he does, will he engage them in a discussion about the Honours List? Will he then take out a large sheet of clean—[HON. MEMBERS: "Lavender paper."]—white, not lavender paper, and write On it the word—[HON. MEMBERS: "Skinner."] I ask my right hon. Friend to resist that suggestion for a start. Will he then write on it the words "The Honours List is undemocratic and I intend to abolish it"?
§ The Prime MinisterI shall, of course, meet my political adviser today. I rarely move without him. It is well known that everything I say is put into my mouth by him—at least all the good points, not the bad ones. As to my hon. Friend's position, I take note of his denial that he wishes to appear in the Honours List. I am not sure whether it is mock modesty on his part to say that or whether he got someone down here actually to shout his name in order to put into my head something which would never otherwise have entered it.
As I have said before that the Honours List is a suitable vehicle for rewarding those who perform a great deal of ser- 256 vice, frequently in a voluntary capacity. I have no intention of abolishing it. Indeed, I receive from hon. Members a great many proposals. Let me point out to those who scorn it that the last Honours List gave a great deal of satisfaction to the groups I tried to pick out, namely, those who help and who work voluntarily for handicapped children and other people. These people do not go into these activities to get a reward, but they like to feel that their services are recognised. I intend to continue with the Honours List.
§ Mr. RobinsonIn the course of his meeting with the CBI, will my right hon. Friend bring to the attention of Lord Watkinson the fact that we much welcome his commitment to get the rate of price increases down to 5 per cent. by the middle of this year? While Lord Watkinson is in the mood for giving these important commitments to the country, will my right hon. Friend ask him to give a commitment to increase new jobs and the rate of investment in manufacturing indusrty'?
§ The Prime MinisterI think that the comment by Lord Watkinson was that he would like to see the rate of inflation down to 5 per cent. by the middle of 1978—and who would not? But this depends upon pursuing policies that will ensure that inflation does not increase. This in turn must arise from export-led growth rather than consumer-led growth, and that is what we still intend to work at. It depends on the level of earnings increases during the next 12 months, because an unwarranted level of increases will lead only to one of two things. It will lead either to more inflation or to higher unemployment. There is no escape from that dilemma.
§ Mrs. ThatcherDoes the Prime Minister recall that when he replied to the economic debate in October he claimed that all the indicators, including unemployment, were pointing in the right direction? On a day when we have had another indicator showing that industrial production is well below the February 1974 level, will he still make the same claim?
§ The Prime MinisterI shall look up what I said, but I shall be very surprised if I said that about unemployment.
§ Mr. TebbitYes, you did.
§ The Prime MinisterThe hon. Member is so sure of everything. I wish that I were as sure of some things as he is of everything.
As for the general indicators, I note that manufacturing industry output has risen, and that is something I dare say we are all pleased about. I note, too, that industrial production as a whole was 1½ per cent. higher in the last three months than in the previous three months. There are special reasons for that, and I never believe in over-claiming on these matters. But if we take the balance of payments statistics, the level of inflation over the next 12 months and the level of growth and of exports, it is probably true to say that we are moving in the right oirection—though not fast enough yet, and there is much more to be done.
§ Mr. AshleyIs it not wrong for the Prime Minister to be lectured by the Opposition about inflation, and especially about unemployment? Does he not realise that while he is fighting for the social contract, thereby to reduce inflation and unemployment, he can expect no help from the Opposition because they represent unbridled nineteenth-century capitalist values? Will my right hon. Friend bear in mind when he speaks to trade unionists who are trying to destroy the social contract that a vote against the social contract is a vote for the Conservative Party and a vote for unemployment?
§ The Prime MinisterI am quite satisfied that it is necessary that we should adhere to the social contract. As regards the statements of the Opposition, I much prefer what they write to the speeches they make. I will not quote once again—[Interruption.] Well, in response to popular requests I will quote. The Conservative document states:
The Conservative approach entails living within our means, paying our way in the world, mastering inflation…an economic miracle is not around the corner. The foundations of economic growth will not be relaid in less than a decade.They are wise words and I agree with every one of them. Provided I get that kind of support generally, I shall be very happy.
§ Mr. BakerWill the Prime Minister find time today to have a word with Sir 258 Ronald McIntosh, Chairman of the NEDC, since it is rumoured that one of his employees, Mr. John Cousins, is threatened with unemployment because he has dared to voice opposition to Government policy? As employees of the NEDC are not employed on the basis of civil servants, surely the Prime Minister should condemn any pressure put upon these employees when they make expressions which are different from and in hostility to the Government's policy.
§ The Prime MinisterI am asked to make judgments, to give opinions and to condemn this and that. I do not intend to exceed my responsibility in this matter. I am sure that Sir Ronald McIntosh is perfectly capable of handling this, and, knowing Mr. John Cousins as I do, I know that he is too.