§ Q3. Mr. Tebbitasked the Prime Minister what progress he anticipates towards his Government's objectives of lower rates of inflation, increased real incomes, lower unemployment and increased production of real wealth above those ruling at the time of the last General Election.
§ The Prime MinisterSustained improvement will depend on the steady pur- 80 suit of the Government's existing policies, including such matters as improving the efficiency and productivity of British industry, competing effectively for exports in world markets, a higher rate of new industrial investment and better use of industry's existing investment, together with adherence to the social contract. In addition, a growth of world trade would be a substantial help in making the progress to which the hon. Gentleman aspires. The Government are pursuing all these matters.
§ Mr. TebbitThe Prime Minister referred to a continuance of the policies which have been pursued since the last General Election. Is he aware that since then industrial production has fallen 3 per cent., unemployment has more than doubled from the famous 8.4 per cent. that was then ruling, and real take-home wages have fallen? Yet he talks of continuing with the same policies. Does he not have anything better to do than to continue with those policies? Could he not try the IMF's policies?
§ The Prime MinisterMy actual words were that we should ensure
the steady pursuit of the Government's existing policies".I believe that those policies are already bringing results and that they will continue to do so. This is hardly the day for the Opposition, in the light of yesterday's trade figures, to say that they are entirely wrong.
§ Mr. JayShould we not all warmly welcome the fact that the Opposition have been entirely unsuccessful in their persistent efforts this winter to damage sterling?
§ The Prime MinisterI think that the Opposition sometimes act out of malevolence and on occasions out of ignorance. Charitably, I prefer, to put it down to ignorance rather than to malevolence.
§ Mr. HordernWhat is the Government's policy in relation to interest rates? Is it to have deliberately high interest rates? Does the Prime Minister realise that the Government are selling hundreds of millions of pounds worth of gilt-edged securities at a rate of over 14 per cent. and are loading the country with very substantial debts for many years to come? Does he appreciate that industry is now 81 unable to borrow money at these rates? How does he defend this policy?
§ The Prime MinisterThat question should be put down to the Chancellor of the Exchequer. [HON. MEMBERS: "You are in charge. You are the boss."] I know that I shall never get that albatross off my neck. I shall have it week after week, whether it is true or not.
It would be foolish, to use the hon. Gentleman's word, deliberately to maintain high interest rates. The Government do not wish to do that. But neither do I wish to forecast either the future trend or sales of gilt-edged securities.
§ Mr. WhiteheadIs my right hon. Friend aware that the hon. Member for Chingford (Mr. Tebbit) was reported this week as having made a speech in Brussels in which he said that he looked forward to a Government in this country who had the populism of Poujade and the economics of freedom—Friedman. [Interruption.] I am not one of those who equates freedom with Friedman. Is my right hon. Friend aware that that speech apparently emptied the room in record time? Does he agree that if those policies were applied here they would empty this country of hope and fraternity in equally record time?
§ The Prime MinisterIt seems to me that the Opposition have already adopted the policies of the hon. Member for Chingford (Mr. Tebbit). In the whole time that I have been in the House I do not remember a party that has been moved so quickly to the right of the political spectrum. If ever the Opposition had the opportunity of putting into practice the policies of Poujade and Friedman—to which, I agree, they are committed—it would be a sad day for this country.
§ Mrs. ThatcherIs not the Prime Minister aware that, according to the Index of Industrial Production published today, the results of his efforts are that this country now produces less than in February 1974? Why is he so self-satisfied with a policy that produces record unemployment, record low production and record inflation?
§ The Prime MinisterI hope that I do not give the impression of being self-satisfied. Indeed—I do not expect to hear 82 a fair opinion from hon. Members opposite—I constantly remind the country of the great distances that we have to travel on economic matters and I shall continue to do so.
If we look at the forecasts for this year, which, as with all Treasury forecasts, should be treated with considerable circumspection—and they are all used by the Opposition when they want to take a stick with which to beat us—they show that gross domestic product will be higher, industrial investment will be higher, manufacturing investment will be higher, manufacturing production will be higher and the increase in retail prices will be lower. These are very important and valuable steps. The one fact with which we have not yet begun to deal satisfactorily is unemployment. That is an issue to which we must bend most of our attention.