HC Deb 28 November 1978 vol 959 cc214-6
Q3. Mr. Rost

asked the Prime Minister if he will dismiss the Chancellor of the Exchequer.

The Prime Minister

No.

Mr. Rost

Why does the Prime Minister punish innocent victims like Ford with penal sanctions, rather than punishing the guilty party, in this case, his own Chancellor of the Exchequer, who created inflation by overspending and overborrowing?

The Prime Minister

I do not think that Ford is either guilty or innocent in this matter. Nor is the company being punished. We intend not to purchase vehicles from it. Unless the Government are to be compelled to purchase vehicles from a particular company —and I must say that this would be a new rule—Ford is not being punished. Ford is only the example of the national dilemma about which people must make up their minds. Do they want prices kept down or not? The Opposition clearly do not. Therefore they are ready to support every inflationary wage increase that is advanced.

Mr. Canavan

Instead of sacking my very good friend the Chancellor of the Exchequer, will the Prime Minister organise a slight Government reshuffle? In the interests of official secrecy will he make the Chancellor of the Exchequer the PPS to the Secretary of State for Energy, and in the interests of open democracy will he make me the Chancellor of the Exchequer?

The Prime Minister

If my hon. Friend is not careful he might very well find himself in that position. But I must say that there has never been anybody who has borne this task for so long with so much physical and intellectual stamina as has my right hon. Friend the Chancellor, and the country owes him a debt of gratitude.

Mr. Peter Bottomley

Will the Prime Minister recognise that one of the difficulties facing the Chancellor of the Exchequer is that the Government have decided that it is in the national interest to keep down inflation and that it is impossible to do that if pay increases rise about 5 or 10 per cent? On the other hand, however, the Labour Party and the TUC conferences have both voted against this policy. Therefore, from where does the Prime Minister get his support?

The Prime Minister

I am grateful to the hon. Member for the information that he has given me. The last time that I received support was on the vote on the Queen's Speech, which is the way in which Governments always derive support. It was a big majority then, despite the Opposition's attempt to try to remove the Government.

Mr. Molloy

Will the Prime Minister and the Chancellor see the leaders of the TUC and the CBI and ask them to state clearly whether they recognise that the policy of the Leader of the Opposition is to have a wages explosion as a matter of political expediency? The right hon. Member for Lowestoft (Mr. Prior) only last week on LBC was encouraging the CBI not to co-operate with the Government. The joint policies of the Leader of the Opposition and the right hon. Gentleman spell grave disaster for Britain and the British people if the Conservatives ever come to power.

The Prime Minister

I am not sure whether the Leader of the Opposition wants a wages explosion—

Mrs. Thatcher

Of course not.

The Prime Minister

The right hon. Lady interjects"Of course not"and I accept that. In that case, I do not understand how a policy of trying to work to an average can succeed in keeping inflation down.

Mr. Donald Stewart

Is the Prime Minister aware that any action against Ford is grossly offensive to the democratic process, because the company has taken no action against any statute law in the United Kingdom? What legal or moral basis does the right hon. Gentleman have for taking these proceedings against the company?

The Prime Minister

I do not want to argue morality at the Dispatch Box. It is not a moral question, but a question of how we manage to ensure that the jobs of the people of this country are safeguarded, that inflation does not get out of hand and that prices do not go up. On that basis, we have decided to take certain actions. I am certain that we are right and that, despite the dilemma, the public understand, why we are doing it. That is why they continue to support us.