HC Deb 06 April 1978 vol 947 cc627-30
Q1. Mr. Skinner

asked the Prime Minister when he last met the Trades Union Congress and the Confederation of British Industry.

The Prime Minister (Mr. James Callaghan)

I met representatives of both the TUC and the CBI when I took the chair at a meeting of the National Economic Development Council on 1st February. Further meetings will be arranged as necessary.

Mr. Skinner

Will the Prime Minister tell the trade union leaders that in her lust for power, the Leader of the Opposition will do almost anything? First, she stabbed her ex-leader in the back. Then she took elocution lessons. Then she moved the policy of the Tory Party on immigration towards the National Front. Then she was seen drinking whisky with the editor of the Tory newspaper, The Sun—

Mr. Speaker

Order. The Prime Minister is not responsible for the Leader of the Opposition. The hon. Member for Bolsover (Mr. Skinner) may put questions only on those matters for which the Prime Minister is responsible.

Mr. Skinner

Will my right hon. Friend therefore tell the Labour Party, both here and outside, that we shall fight the election not on expediency but on principles fashioned by the Labour Party and the trade union movement?

The Prime Minister

The TUC and the CBI both understand this position. I find, in my discussions with them, that they are principally concerned with how best to co-operate with each other and with the Government in getting higher industrial production, making our way out of the world recession, and raising the standard of life of the people of this country as well as ensuring that there are good industrial relations. These are the matters that we usually discuss, and with very great effect.

Mr. Fairbairn

Will the Prime Minister, when he speaks to the TUC and the CBI, remind them that they do not entirely represent, as they are claimed to do, the people of this country? They represent a very small fraction. Will he agree that it is those who work in small businesses who are likely to achieve the production that we need?

The Prime Minister

I find in my discussions with them that the CBI and the TUC would not claim any more than that they represent their own members. It is the responsibility of the Government to have the national interest as a whole in its charge. That is why I cannot always agree either with the TUC or with the CBI.

Mr. Walter Johnson

When my right hon. Friend next meets the CBI and the TUC, will he, through them, convey the congratulations of this House to Sir Kenneth Keith and to all the workers involved at Rolls-Royce in achieving the massive order from Pan Am for the RB211? Does he agree that this magnificent achievement has been brought about by a nationalised company in fierce competition with private enterprise? Does this not reflect great credit on everybody concerned?

The Prime Minister

Yes, Sir, I think it does, especially as I understand that the order was won on the technical merits of the engine, which goes to show that this country can still produce what is necessary against world competition.

If we are to distribute the congratulations fairly—I have already written a personal note to Sir Kenneth Keith—we ought also to congratulate the Tory Party on nationalising Rolls-Royce.

Mr. Budgen

When the Prime Minister next meets the TUC and the CBI, will he draw to their attention the leading article in The Times of today which predicts a 15 per cent. rate of inflation next year as a consequence of the increase in the money supply for the last 12 months? Will he remind them that there is in the circumstances no chance of a reflationary Budget which does not have the effect of increasing the rate of inflation?

The Prime Minister

I read that very interesting article against the background of the knowledge that the leader writer, if I guess the style correctly, is a well-known monetarist. It seemed to me that he was sensationalising a little by annualising—that is, translating into an annual rate—the increase in money supply over the last three or four months, and that would not necessarily be borne out over the full 12 months. However, I am having a study made of this proposition, because we should in no circumstances return to the bad habits of the Conservatives in 1972–73.