HC Deb 25 May 1978 vol 950 cc1742-6
Q2. Mr. Molloy

asked the Prime Minister if he will list his engagements for 25th May.

The Prime Minister

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. I shall also be meeting the Prime Minister of Mauritius.

Mr. Molloy

In the context of meeting others, will my right hon. Friend be prepared to meet members of the Press to explain to them what it really means to this country to have had an increase of 1 per cent. in the gross national product over the past three months, which over a year could mean a 4 per cent. increase, and which even The Guardian acknowledges as being quite a remarkable achievement, or words to that effect? Together with moderation in wage negotiations, and the fight against inflation, this means that there is now a real possibility of an increase of standards of life for ordinary working people and brighter prospects for Great Britain.

The Prime Minister

Yes, Sir. There has, I think, been a considerable improvement in a number of these factors over the past 12 months. I am grateful to my hon. Friend for calling attention to them. But To make the structual changes that are necessary to restore the dynamic of a mixed economy will need a settled approach over a long, hard haul. It is idle to talk, as so often before, of the economic miracle that is round the corner. Those wise words from the Conservative document "The Right Approach" I absolutely applaud.

Mrs. Thatcher

The Prime Minister will have had drawn to his attention the report from the National Federation of Self-Employed which demonstrates quite clearly that its members could take on many more people and give them jobs were it not for the present Government's labour legislation. As that report flatly contradicts what the Prime Minister said on Tuesday, will he now review that labour legislation to see that it is fair to employer and employee alike?

The Prime Minister

No, Sir. I see no reason to review the legislation. Altering the relative position of employers and employees has brought considerable protection at a time when there will be great changes in this country's economic affairs. I do not wish to return to the situation that existed in 1973 and 1974, when the Conservative Party showed that it had totally failed to understand industrial relations in this country.

Mrs. Thatcher

Is not the Prime Minister totally failing to understand the nature of some labour legislation? Since, quite clearly, those who run small businesses say that such legislation is preventing them from taking on more people, and as the Minister responsible for small businesses in the Cabinet clearly believes the same thing, why is the Prime Minister out of step?

The Prime Minister

This is a matter of judgment and not of fact. It is the judgment of the Government that it is far better to preserve employment in the way that we are, by helping small businesses through improvements in the capital transfer tax and in their taxation position generally, and other things that have been welcomed by small businesses, than by altering labour legislation. I warn the right hon. Lady not to tamper with it.

Mr. Madden

Has the Prime Minister noticed the extraordinary speeches of the Leader of the Opposition and other prominent Tories, claiming that Socialism breeds crime and violence? Will he make it abundantly clear that the Tory Party does not enjoy a monopoly of concern about crime and violence, or a monopoly of compassion about the victims of crimes, or, indeed, a monopoly of wisdom about the methods of combating crime and violence?

The Prime Minister

I accept that, but we should not take all the speeches of the Leader of the Opposition seriously. We should not attach more weight to them than the electorate knows they will hold. The case is that since this Government came to power 7,500 more police have been employed, we are spending, in real terms, £250 million more—and that figure will go up when the Edmund-Davies report appears—and we shall continue to put forward policies that are necessary to overcome the crime increase. The Conservatives will no doubt make this a party matter, but I doubt whether the country will.

Mr. Fairbairn

Could the Prime Minister take time off today, on his way back to No. 10 Downing Street, to look in the window of No. 36 Parliament Street, which is an emporium of the Department of the Environment, where he will see the following advertisement: Now for sale. No. 10 Downing Street. Price 50p. Is this an indication to the country of his electoral intentions? Assuming that the present incumbent is to be thrown in with the heritable property, under the Government's prices and consumer protection policy should we not expect a rebate for the purchaser?

The Prime Minister

As is well known, I am the occupier of a tied cottage and can be ejected at any moment if the electorate dislikes me. I have to abide by that. Alas, I am not covered by the legislation which gave so much assistance to agricultural workers. I am content to live in the cottage on those conditions.

Q3. Mr. Skinner

asked the Prime Minister if he will list his official engagements for 25th May.

The Prime Minister

I refer my hon. Friend to the reply which I have just given to my hon. Friend the Member for Ealing, North (Mr. Molloy).

Mr. Skinner

Will the Prime Minister, before the club gets up for the hols, take a few minutes from his less busy day and consider the changing fortunes of the political parties over the course of the past 12 months? Does he recall, for instance, that at the Tory Party conference only last year buoyant members were displaying badges that said "Put a woman on top for a change" and now, only nine months later a disaffected Conservative printer is issuing to the Liberal Party Whips' Office badges and car stickers which say "Ditch the bitch"? [HON. MEMBERS: "Withdraw."] Does my right hon. Friend deplore—

Mr. Speaker

Order. We all want to give the hon. Gentleman his fair chance, but the whole House does not like that sort of thing.

Mr. Skinner

Does the Prime Minister, like me, deplore this drift into political vulgarity on the part of the Opposition?

The Prime Minister

My hon. Friend is well known both for his strong views—

Mr. Fairbairn

And his bad taste.

The Prime Minister

—and the courage of his convictions. I am bound to say that I do not like personal animadversions of this sort.

Mr. Baker

Does the Prime Minister recall that over the past six months the money supply has increased at an annual rate of 21 per cent.? Is not the inevitable consequence of this, as I am sure he and the Chancellor would agree, that in nine to 12 months inflation will be into double figures? What proposals does he have to deal with this, other than calling an early General Election, before the chickens come home to roost?

The Prime Minister

I understand that Questions were addressed to the Chancellor of the Exchequer on this matter a few minutes ago—

Mr. Lawson

Answer.

The Prime Minister

I shall gladly give my own views on this if the hon. Gentleman is so keen to have them. I think that there are factors that ought to be of concern to us in this situation, although, so far so good; we have done pretty well on these matters. What we can say, and what I would say, as I am sure the Chancellor has already said, is that we intend to watch this matter pretty closely. I will not have the great success that we have had with inflation dissipated by an increase in the money supply that cannot be contained. Appropriate action will be taken when it is necessary—

Mr. Baker

The money supply is going up.

The Prime Minister

No, it is not. That is a matter of opinion, and the hon. Gentleman is not always universally right. When we are convinced that it is necessary to take action, action will be taken. This prize that the country has won—to get inflation down to this level—is too great for us to allow it to be thrown away. Although the hon. Gentleman's eyes may be fixed on some distant General Election, that will not deflect the Government from taking any action necessary to keep inflation under control. He can be sure of that.

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