§ Q1. Mr. Ashleyasked the Prime Minister if he will list his official engagements for 18th May.
§ 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 meetings with ministerial colleagues and others. This evening I hope to attend a reception being given by President Seretse Khama of Botswana.
§ Mr. AshleyIf my right hon. Friend finds time to consider last night's televised tour of the archives by the Conservatives, will he agree that it was a lament for the past by a party which offers old, simple solutions for new, complex problems and that, although incentives may be important, there is a danger that if they are peddled as a panacea, as they are being peddled by the Opposition, the incentive society may become the insensitive society, as many of us have good reason to believe?
§ The Prime MinisterI regret that I did not have the good fortune to watch this broadcast. I am not sure whether the commercialising and packaging of party political views is in the best interests of the party concerned, but that is for it to judge.
§ Mrs. ThatcherIf the Prime Minister did not have time to see the broadcast last night, which I completely and totally accept, has he had time to look at the report issued by the Treasury yesterday, which shows that wages are going up faster here than elsewhere and that the growth in output has seldom been worse? Does he accept that this makes us much less competitive than similar industrial nations and that that is the result of his economic policies over the last four years?
§ The Prime MinisterThe right hon. Lady is correct to call attention to these facts, some of which are good and some of which are not so good. It is good that earnings should be going up faster than prices, because that will improve the standard of life of our people. What is not so good is if production does not increase correspondingly. I am glad to say that there are signs of improvement there. I am told that the increase in industrial production in the first quarter of 1978 over the last quarter of 1977 was 1. per cent.
However, I agree with the right hon. Lady that we should call attention to these factors. They are saying no more than I consistently say at the Dispatch Box. We shall endeavour to keep production, inflation and wage levels in line so that this country can be as competitive as anyone else.
§ Mr. Arthur LathamDoes my right hon. Friend realise that some rents are going up much faster? Could he find time to look into his duties and responsibilities as an ex officio Church Commissioner? Does he realise that the Church Commissioners are inflicting unacceptable rent increases on many tenants in my constituency? Does he not find it embarrassing, as a nominal member of the Church Commissioners, that they should increasingly behave more like Freshwater and less like Christians?
§ The Prime MinisterI fear that the duties of Church Commissioner do not take up as much of my time as perhaps they should. I shall certainly see that the matter is looked into, even though I am only ex officio.
§ Mr. Anthony GrantHas the Prime Minister had a chance to reflect today on his recent meeting with the President of Turkey? If so, will he give the House his view of the effect on NATO of the continued United States arms embargo on Turkey, which is our partner?
§ The Prime MinisterNo. I would not want to give my views about that because it is not the responsibility of the Government; it is the responsibility of the American Administration. The Turkish Government have asked whether it is possible for some European countries to assist them in their armaments programme, but most of the conversation between the President of Turkey and myself, which did not take place today, was concerned with the problems of Cyprus. I asked the President to be more flexible in his approach.
§ Mr. PardoeWill the Prime Minister amplify his earlier remarks about keeping earnings in line with output? Does he accept that earnings are bound to rise by about 14 per cent. over this pay round, that output cannot possibly rise by more than 3 per cent., and that the balance must be paid either by inflation or unemployment? What will he do to bring the two things in line for phase 4?
§ The Prime MinisterA little more help from the hon. Member for Cornwall, North (Mr. Pardoe) would not come amiss. What I intend to convey is that all these matters must bear a relation to each other, not that they should be strictly in line with each other, which, clearly would not be accurate. The hon. Member knows my views about this almost to the point of boredom.
§ Mr. HefferI recognise that my right hon. Friend has little time to read the speeches of the Leader of the Opposition, but could he find time to read the speech that she made in a church in the City of London recently, and an article which she wrote in The Daily Telegraph? Is it not clear from that speech and the article that the right hon. Lady and her friends intend to undermine the National Health 770 Service, to impose charges and to undermine the whole concept of the Welfare State as we understand it?
§ The Prime MinisterIt is not part of my responsibilty to read these speeches or article, but I did read the article in The Daily Telegraph. The right hon. Lady's emphasis on and concern for the welfare of the family was set out in that article and I found that I was largely in agreement with it. It is a theme that I have taken up because it is of great importance. For that reason I am deeply sorry that the Opposition should find it necessary to make a party matter of it.