HC Deb 17 November 1977 vol 939 cc755-7
Q1. Mr. George Gardiner

asked the Prime Minister whether he will pay an official visit to Reigate.

The Prime Minister (Mr. James Callaghan)

I have at present no plans to do so.

Mr. Gardiner

When the Prime Minister does come down our way, will he travel by British Rail, second class, in rush-hour conditions that he would not inflict on an animal—[HON. MEMBERS: "Do you?"]—yes—and explain to my commuter constituents why, after the so-called efficiency drives, they are being asked to pay a 16 per cent. rise in fares at the same time as they are being asked to restrict their own earnings to the region of 6 to 7 per cent.?

The Prime Minister

I have not been into this question in detail, and I suggest that the hon. Gentleman tables a Question to the Secretary of State for Transport. What is quite clear is that the railways as a whole, like other nationalised industries, will be restricting their increases to the level of inflation. That makes it doubly important that we should keep down the level of inflation.

Mr. Tim Renton

Is the Prime Minister aware that many of my constituents work in Reigate? [Interruption.] What is coming is not funny. In the light of the present firemen's strike, my constituents would very much like to know whether the Prime Minister now regrets his gross irresponsibility in backing the miners all the way throughout February 1974 in order to bring down the Conservative Government. Was it not from that time that there flowed three years of appeasement to the big unions from which the smaller unions, such as the firemen's, have suffered so much?

The Prime Minister

I do not believe that what I said in Aberdare in 1974 arises out of a possible visit to Reigate in the future. But I suggest to the hon. Gentleman that he takes the following factors into account. First, he should read the whole of that speech, which I have done with great care. Secondly, he should recall that at that time the rate of inflation under a Conservative Government was beginning to soar. [HON. MEMBERS: "What was it?"] That, too, is contained in the speech at that time. Thirdly, Lord Barber had allowed the money supply to get wholly out of control. That, too, was contained in the speech. Finally, I objected very strongly to the miners being called "extremists", and it was against that background that I said that the former Prime Minister had little chance of succeeding.

Mrs. Thatcher

But does the Prime Minister recollect that he actually referred to the rate of inflation in that speech and complained about it as being 12 per cent? This Government have now been in power for as long since 1970 as the Conservative Government. When has the rate of inflation been as low as 12 per cent. under a Labour Government?

The Prime Minister

I recall this very well. That was the point against which I was saying that inflation was steadily going up under the Conservative Government, and it continued to rise very steadily. Now, of course, the background is that inflation is steadily coming down. This makes a great deal of difference to the psychology and background of wage claims.