Engagements (Hansard, 15 December 1981)

§ Q1. Mr. Stanbrook
asked the Prime Minister if she will list her official engagements for Tuesday 15 December.

§ The Prime Minister (Mrs. Margaret Thatcher)
This morning I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall have further meetings later today. This evening I hope to have an audience of Her Majesty the Queen. Later I shall attend a dinner to celebrate the 220th anniversary of the Board of Deputies of British Jews.

§ Mr. Stanbrook
Has my right hon. Friend seen the news reported on the front page of The Daily Telegraph today that the rate of industrial output had increased by 1.7 per cent. in October, the highest rate for two-and-a-half years, and that the rate of output in the construction industry increased by 2½ per cent. in the same period? Does that not show that my right hon. Friend's policies are working successfully and that it would be foolish to change them?

§ The Prime Minister
Yes, I confirm what my hon. Friend says about increases in industrial output. There were also increases in manufacturing output and in the construction industry, and very large increases in output in the oil and gas industries. This is encouraging news. The increases have continued for well over a quarter and in some cases for five months. This shows that the policy of making British industry efficient is bringing about improvements, with the increased output that we now see.

§ Mr. Foot
Has the right hon. Lady any further information to add to what was said in the House yesterday about events in Poland and the anxiety that we all feel at reports that the leader of Solidarity may have been placed under arrest?
On another matter of grave international concern, what representations have the Government made, or will they make, about the proposed annexation of the Golan Heights by the Israeli Government, which is certainly contrary to resolution 242, which this country has always supported?

§ The Prime Minister
With regard to the two big questions raised by the right hon. Gentleman, the Foreign Ministers of the Ten, at present meeting in London, have issued the following statement with regard to Poland: The Foreign Ministers of the member States of the European Community are concerned at the development of the situation in Poland and the imposition of martial law and the detention of trade unionists. They have profound sympathy for the Polish people in this tense and difficult time. They look to all signatory States of the Helsinki Final Act to refrain from any interference in the internal affairs of the Polish People's Republic. They look to Poland to solve these problems herself and without the use of force, so that the process of reform and renewal can continue. 150 Foreign Ministers of the Ten are continuing to follow events in Poland with particular attention and agreed to remain in close consultation on this question.
With regard to what has happened to the Solidarity leadership, our knowledge is incomplete. We believe that a large number of Solidarity leaders have been detained, including the leadership of the Warsaw region. Earlier reports suggested that Mr. Walesa may not have been detained but may have had talks with the authorities in Warsaw. We have received no independent confirmation of that, nor have we any further reports. It is not easy to get accurate information out of Poland at the moment.
With regard to the decision of the Knesset in Israel yesterday about the Golan Heights, the Foreign Ministers have issued the following statement, to which we subscribe: The Foreign Ministers of the member States of the European Community strongly deplore the decision of the Government and Knesset of Israel to extend Israeli law, jurisdiction and administration to occupied Syrian territory in the Golan Heights. Such an extension, which is tantamount to annexation, is contrary to international law, and therefore invalid in our eyes. This step prejudices the possibility of the implementation of Security Council resolution 242 and is bound to complicate further the search for a comprehensive peace settlement in the Middle East to which we remain committed.

§ Mr. Rhodes James
With regard to the menacing crisis in Poland, which inevitably is occupying a great deal of the attention of my right hon. Friend, does she recognise that the factors that prompted a generous approach by Western countries towards Poland's grave economic difficulties in the past under the previous Government do not obtain in the view of many of us in the present circumstances? Does she accept that many of us do not see why we in the West should give aid and comfort to such a regime in these circumstances?

§ The Prime Minister
As I said earlier, we are all very concerned about the imposition of martial law in Poland. As my right hon. Friend told the House yesterday we believe that it is too early for anyone, either Governments or banks, to make any changes in arrangements for the rescheduling of Polish debt repayments or the provision of new credit. For the moment, therefore, we shall leave things as they are, without making any changes in the financing provisions. As my hon. Friend knows, we have ourselves, and through Europe, provided a great deal of food throughout the last year. We believe that it is better to leave things as they are but to keep a close watch on what is happening in Poland.

Mr. J. Enoch Powell
The Prime Minister will today no doubt be putting the finishing touches to her address to the European Assembly. Will she, in all candour and fairness, include in that speech a passage making it clear to the Assembly that this country's membership of the Community is contrary to the profound opinions of the majority of people, who wish to see their friendly relationships with the countries of Europe in a different framework from that which the European Community provides?

§ The Prime Minister
No, I cannot give the right hon. Gentleman the answer that he seeks. I profoundly believe that membership of the European Economic Community is in the best interests of this country, above all, for political reasons. It means that there is an area of democratic stability in Europe, which is vital in the interests of Europe and the larger world at present.

§ Q2. Mr. John Townend
asked the Prime Minister if she will list her official engagements for 15 December.

§ The Prime Minister
I refer my hon. Friend to the reply that I gave a few moments ago.

§ Mr. Townend
Does my right hon. Friend agree that one of the causes of the present high level of unemployment is the growing practice of the trade unions of being prepared to trade jobs for higher wage increases? In that context, will she comment on the recent offer of the local authorities to manual workers, which is way ahead of the cash limits and which, in the words of the employers' representatives, can be paid for only by a reduction in the number of jobs and cuts in services?

§ The Prime Minister
It is vital to recognise that there is a link between higher pay that is demanded without higher output and the number of jobs that can be provided. Frequently, higher pay without higher output leads to fewer jobs. Where that happens with a local authority it can also lead to fewer jobs in small and even bigger business within the curtilage of that local authoriy. Many employers could afford to take on more young people if they were not paying higher wage rates. With regard to the recent considerable increase that has been offered to local authority manual workers, I understand that employers' representatives said that it was more than they could afford. I note that the offer was made as a result of the casting vote of a Labour chairman.

§ Mr. Skinner
Will the Prime Minister condemn the report that during her visit to the European Assembly tomorrow there will be laid on for her and others, during the three-hour visit, a champagne "do" costing £50 per head? Is that not a scandalous waste of money?

§ The Prime Minister
The entertainment that I am offered is a matter for my hosts.

§ Q3. Mr. Chapman
asked the Prime Minister if she will list her official engagements for Tuesday 15 December.

§ The Prime Minister
I refer my hon. Friend to the reply that I gave some moments ago.

§ Mr. Chapman
If my right hon. Friend reflects upon the speech that she is to make to the European Assembly in Strasbourg tomorrow, will she consider, in the light of what the right hon. Member for Down, South (Mr. Powell) said, that since this country joined the EEC the value of our exports to the member States of the European Community has increased more than sixfold in the last eight years, that we are now in surplus on our visible balance of trade and that our largest customer is West Germany? Does she agree that any action to withdraw from the EEC, at least on trade and economic grounds, would be an act of supreme folly?

§ The Prime Minister
I confirm in general terms what my hon. Friend said about our trade with the EEC. In economic and trading terms it would be an act of folly to withdraw. Our trading figures with Europe will be even better when we secure that liberalisation of insurance, banking and so on, in which we in this country excel. Any suggestion that we should withdraw is highly damaging to the inward investment that we need, especially the investment that we need to secure more jobs.

§ Mr. Gordon Wilson
Does the Prime Minister realise that the level of urban deprivation in Scottish inner cities 152 is among the highest in the United Kingdom? In view of the silence since the announcement of her right hon. Friend the Secretary of State for the Environment that £95 million will go to the English inner cities, will she tell the House of the Government's intentions towards the Scottish cities, which so badly need help and sustenance?

§ The Prime Minister
I was under the impression that my right hon. Friend the Secretary of State for Scotland already had an excellent scheme in operation in Glasgow. We are looking at that scheme with a view to learning lessons from it in order to be able to apply them in cities in this country. The hon. Gentleman may rest assured that my right hon. Friend is not slow in coming forward for any benefits that apply to England.

§ Dr. Mawhinney
Will my right hon. Friend find time today to offer her encouragement to the 12 new businesses that have just been started by people in Peterborough—who were formerly unemployed—under a local scheme financed by Barclays bank at my request? Does my right hon. Friend understand and appreciate that that scheme complements the Government's loan guarantee scheme, which is greatly appreciated by my constituents?

§ The Prime Minister
Yes, I congratulate everyone concerned, especially my hon. Friend, not merely on talking about these matters but on taking action to secure more jobs for his constituents. I know of the scheme to which he refers. He persuaded a large bank to set aside money for those who were able to set up small businesses. Twelve new ones have been set up, providing jobs that would not otherwise have been provided. I hope that every hon. Member will take note of that and follow my hon. Friend's example.

§ Mr. John Grant
In view of the disgraceful announcement yesterday that the overseas aid budget is to be cut by more than ever before in a single year, does the Prime Minister recognise that she will be known as the Job's comforter of the Third world? Does that not mean, in effect, that the Government have buried the Brandt report?

§ The Prime Minister
No, Sir. It is true that the net aid programme next year will be £950 million, which represents a reduction in planned expenditure of just under £20 million—and an adjustment for overspending in 1980–81. The gross aid programme next year will still be over £1 billion and the Commonwealth Development Corporation is being allowed to borrow abroad up to £15 million in each of the next three years.

§ Mr. Lawrence
Will my right hon. Friend take this opportunity to congratulate all those responsible for the excellent performance of British Shipbuilders? Is she aware that the company has increased its productivity by 15 per cent., that industrial disputes are practically at an all-time low, and that the order books on merchant shipping are extremely high? Does that not vindicate the activities of her Government in relation to nationalised industries?

§ The Prime Minister
Yes, Sir. Once again that shows that the Government's policy of ensuring that industries—whether private or nationalised—become efficient and competitive is paying off. I congratulate British Shipbuilders on securing so many good orders and hope that it will soon become profitable.