HC Deb 04 November 1980 vol 991 cc1100-2
Q4. Mr. McNamara

asked the Prime Minister if she will list her official engagements for Tuesday 4 November.

The Prime Minister

I refer the hon. Gentleman to the reply which I gave earlier.

Mr. McNamara

Does the right hon. Lady and her right hon. Friend the Secretary of State for the Environment ever reflect upon the old adage "penny wise, pound foolish"? Is she aware that as a result of the moratorium on council contracts, essential fire precautions for hostels for the homeless within the city of Hull cannot now go ahead, thus increasing bed and breakfast costs for the local authority; that during the coming winter months non-completed council houses will be open to vandals; and that essential work to remedy this situation and to give homes to the people will be denied because of this foolish edict?

The Prime Minister

Every council must keep within certain spending totals, and there is nothing laudable about spending beyond one's means.

Mr. John Townend

Having abolished the Clegg commission and suspended the Pay Research Unit, will my right hon. Friend now advise local authorities to take similar action so that a reported 19 per cent. increase for firemen, based on comparability, is stopped this year? Is she aware that if it is not it will undermine the Government's policy of keeping public pay increases within 10 per cent.?

The Prime Minister

The Government have absolutely no standing in the negotiation of that pay claim, which is done wholly between the firemen and the local authorities. The Government perhaps come in in two respects—first, in the amount that we give in the rate support grant to met that claim, and we have already indicated that amounts will only be within single figures. Secondly, in so far as the Home Office is concerned, the fire inspectorate must agree to any reductions which can fully and properly take place within proper fire safety regulations. Otherwise, it is wholly up to the local authorities. I hope that they will have due and proper regard for the great sacrifices that must now be made by the private sector.

Mr. Sheerman

As the Prime Minister has tragedies in British industry so much on her mind, will she spend some time today thinking of the tragedy of ICI, which for the first time in its history has failed to make a profit? Will she consider the thousands of jobs in the organics division which it is now planning to cut in the coming weeks and months, and also the people, such as those in my own constituency, who will be hard hit by more and more redundancies?

is the effect it might have on reducing the high exchange rate. But first we must secure the co-operation of hon. Members in trying to reduce public expenditure so that we can reduce public sector borrowing, and therefore, high interest rates.

Mr. Watson

In view of the continuing high level of interest rates, and the need to reduce the public sector borrowing requirement, will the Prime Minister again examine the case for a tax upon the windfall profits of the major clearing banks?

The Prime Minister

I am certain that my right hon. and learned Friend the Chancellor will be considering all methods of reducing the public sector borrowing requirement.

Mr. Woolmer

As the unemployment rate has apparently increased much faster than the Prime Minister thought, can she say when she expects unemployment to rise above 2½ million? Can she also say whether a further round of tax rises and public expenditure cuts will reduce unemployment or increase it?

The Prime Minister

With regard to forecasts on unemployment, I follow the well-established precedents of the right hon. Members for Cardiff, South-East (Mr. Callaghan), Leeds, East (Mr. Healey), and Ebbw Vale (Mr. Foot). I do not give forecasts on unemployment. With regard to cuts in public spending, as all public spending has, ultimately, to be financed out of the productive sector, most of which is the private sector, the more resources that we put into the public sector the less there is available to purchase goods in the private sector, which is where unemployment is likely to rise.