CBI (Hansard, 18 July 1978)

§ Q4. Mr. Gwilym Roberts
asked the Prime Minister what plans he has to meet the CBI.

§ The Prime Minister
I hope to meet representatives of the CBI tomorrow. Further meetings will be arranged as necessary.

§ Mr. Roberts
Does my right hon. Friend accept that the Government's industrial strategy has been greatly welcomed on both sides of industry and that they are equally aware that the Opposition clearly have no industrial strategy? But, in his discussions with the CBI, can he suggest further Government action to implement some of the recommendations of the sector working parties?

§ The Prime Minister
Yes, Sir. It is my profound belief and knowledge that the CBI and the TUC together welcome the Government's industrial strategy, despite the attacks that the Opposition constantly make upon it. We are constantly working with industry through the sector working parties. Indeed, much of the work that is now being done is being translated to the level of firms. This is helping to increase productive efficiency and exports.

§ Mrs. Kellett-Bowman
Is the Prime Minister aware that in my constituency unemployment has risen to 7.6 per cent., which is three times as high as it was at the time of the three-day week? When he is talking with the CBI, will he inform it that he intends to make ours a development area so that industrialists will receive better grants to bring factories into our area?

§ The Prime Minister
If the hon. Lady will put down a Question to my right hon. Friend the Secretary of State for Industry on development areas, I am sure that she will receive an answer. But I must point out that what she seeks would involve additional public expenditure, and her own leaders are heavily 265 committed against that. But that is not the only discrepancy we find between their general statements and their particular requests.
As to the levels of unemployment, I think that what we did at Bonn yesterday will help with this matter throughout the world and will therefore have an impact on our own country. But it would be wrong and mischievous for anyone to pretend that the level of unemployment, either throughout the industrialised world or in the United Kingdom, will cone down fast, because it will not. That is why we must keep the temporary employment subsidies and our other job-creating measures. Some day I should like some support from the Opposition fir those.

§ Mr. Whitehead
As my right hon. Friend has been having some very successful talks with trade unions recently, will he bear in mind that one thing that would upset many trade unionists is any decision to return aero-engines to Chile? Will the Cabinet reconsider that?

§ The Prime Minister
It is not a matter for the Cabinet to reconsider. It is not a Cabinet matter at all, except on the question of the issue of an export licence. The engines belong to Chile. Whether I like that or not is not in question. They were sent here for repair and now they are due to be returned, as the repair has been paid for. That is the legal position, and the Government do not come into the matter.

§ Mr. Prior
In view of the excuses produced by the Prime Minister this afternoon on the subject of unemployment, may I ask whether he has forgotten that his party and his right hon. Friends fought the October 1974 General Election on the basis that unemployment was under control and that inflation was coming down? Were they perhaps not telling the truth then? Therefore, what is the excuse for anyone's believing them next time?

§ The Prime Minister
I do not know whether anyone will believe me. I can only tell the facts as I see them. It is for the public, not for the Opposition, to make up their minds about that. I think that they have a pretty good idea about it. What is quite clear is that the world recession which started in 1973, 266 following the quintupling of oil prices, has been longer than any country expected. It was to unemployment that all of the seven nations which assembled yesterday were directing their attention. I hope that we shall be able to overcome this problem, but I will not make false promises about it. As regards inflation, as the right hon. Gentleman knows, we have reduced the level much below what is was when he was in office. Further, we have kept it under control.