HC Deb 29 June 1978 vol 952 cc1567-9
Q1. Mr. Terry Walker

asked the Prime Minister if he will list his public engagements for 29th June.

The Prime Minister (Mr. James Callaghan)

This morning I presided at a meeting of the Cabinet. In addition to my duties in this House, I shall be holding further meetings with ministerial colleagues and others.

Mr. Walker

Will my right hon. Friend find time in a very busy day to reflect further on the talks that he had earlier in the week with American aircraft manufacturers? Does he appreciate that all those who want to see the development of the British aircraft manufacturing industry will be very pleased that he had those talks? Will he consider making a statement about his talks with the McDonnell Douglas Company, because it is very important that we hear the offer being made to Britain by the Americans?

The Prime Minister

I am obliged to my hon. Friend. The talks were valuable, certainly to me, and they revealed that there is a very big and rapidly growing market for air transport, especially in the United States. We shall have some difficult decisions to take as between the three corporations that we have, and certainly the facts must be laid before the House. I understand that my hon. Friend has the opportunity of a debate quite soon. If he chose this subject, I—and I am sure this applies to the Ministers concerned—would welcome it.

Mrs. Thatcher

Will the Prime Minister say whether his Government have finally made up their minds about their Budget and, if so, exactly what changes they propose? Is not the only firmness shown so far his support for policies of high taxation and his determination to persist with a levy that will put a tax on exports, a tax on jobs, and a tax on food?

The Prime Minister

We made up our minds about the Budget in April. Unfortunately, we could not carry the House wholly with us on every proposal. However, if the right hon. Lady is now repenting of her vote and wishes to go back to the position that we announced in April, I shall be very happy to do that. As for the rest, I must say that it is very odd to say that we are in favour of high taxation, considering that over the last two Budgets we have reduced it steadily.

Mrs. Thatcher

Does the Prime Minister remember saying from that Dispatch Box a few weeks ago that the tax changes that the Opposition had chosen would reduce unemployment, whereas the tax changes that he had chosen will increase unemployment? Why does he persist in policies that increase unemployment, one of which is tax and the other defence policy, which has already cut jobs by 180,000?

The Prime Minister

As I have answered the right hon. Lady's first question, I quite understand her now moving on to another and entirely different one. I dare say that if she goes on biting for the entire 15 minutes of Prime Minister's Questions, she will score a scratch somewhere. The Government's economic policy is well understood in the country, and it is meeting with increasing satisfaction there.

Mr. Freud

In his busy schedule will the Prime Minister find time to visit the Cafeteria, where the loyal and unhappy staff have been ordered by their unions to strike, which does little credit to the House of Commons in general? Will he consider opening the catering facilities of No. 10 Downing Street to right hon. and hon. Members who are deprived of catering?

The Prime Minister

I cannot say that I entirely recommend the second proposal. Hon. Members might find themselves a little hungry now and again. On the catering facilities generally, I have no comment to make, as I have not studied the matter. I am sure that the Lord President will make a statement if necessary.

Mr. Jay

To be fair, are not the efforts of the Tory Opposition to unbalance the Budget this summer entirely consistent with their profligate financial policies of 1972–73?

The Prime Minister

Yes, but the Opposition show no signs of recalling that or learning from that, as is shown by their attitude to wage increases and to industrial relations generally.

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