Business and Industrial Confidence (Hansard, 1 August 1984)

§ 13. Mr. Silvester
asked the Secretary of State for Trade and Industry if he has met the chairman of the Confederation of British Industry recently to discuss the level of business and industrial confidence.

§ Mr. Tebbit
Yes, Sir. At that meeting the president of the CBI assured me that the underlying confidence of business remained firm.

§ Mr. Silvester
Did my right hon. Friend note in the survey published yesterday by the CBI that it was clearly stated that the miners' strike had had no effect on business confidence? Does he agree that the reason for that happy outcome is in large measure due to the continued assurance of electricity supplies, both by working miners and the Government?

§ Mr. Tebbit
Yes indeed, Sir. The CBI understands the wisdom of undertaking the public expenditure, to which my right hon. Friend the Chancellor of the Exchequer referred last night.

§ Mr. Straw
Is the Secretary of State aware that those hon. Members who are following him closely have noticed that he is extraordinarily nervous this afternoon and is even having difficulty in controlling a nervous shake of his hands as he comes to the Dispatch Box? [Interruption.]

§ Mr. Speaker
Order. That does not have much to do with this question.

§ Mr. Straw
Is the Secretary of State nervous, not just because he is angry with the Chancellor of the Exchequer, but because he has realised that not even his customary stock in trade of insults and bluster can disguise the fact that the recovery has petered out and that there must be a 335 major change in policy if there is to be any chance of a reduction in unemployment before the end of this Government?

§ Mr. Tebbit
The hon. Gentleman should get over his shaky lack of confidence about reselection and come back into the real world.

§ Sir Peter Emery
Does my right hon. Friend accept that if ever any man gave an impression of confidence on the Front Bench, it is he? When he consults the CBI, will he make it clear to all aspects of industry that the Government will continue their economic policy and that they will not waver, because if industry gets the impression that we are wavering things will begin to go wrong?

§ Mr. Tebbit
Indeed, and industry has overwhelming confidence in that policy. Not only British industry is confident. I notice that, no doubt partly as a result of pressure from industry in France, the French Government have moved away from the Socialist nonsense that is still preached by the Opposition here and have come much nearer to the policies of this Government.

§ Mr. Shore
When did that unique and remarkable meeting with the representatives of the CBI take place? Is the Secretary of State aware that only four months ago, when the Chancellor of the Exchequer announced a reduction in minimum interest rates from 8.5 to 8 per cent., the CBI greeted that as an enormous contribution to the effectiveness of industry? Only 10 days ago, interest rates increased from 9 per cent. to nearly 12 per cent. Was the CBI speechless on this occasion, or had it entirely forgotten its natural self-interest?

§ Mr. Tebbit
; CBI representatives were neither speechless nor had they forgotten their self-interest. That was why they expressed their confidence, and that of business generally, in the Government. I know that the right hon. Gentleman is pleased that interest rates have increased, because he is pleased when anything happens that is adverse to British interests.