§ Q1. Mr. Craigenasked the Prime Minister if she will list her official engagements for Tuesday 10 June 1986.
§ The Prime Minister (Mrs. Margaret Thatcher)This morning I had meetings with minsterial colleagues and others. In addition to my duties in this House I shall be having further meetings later today. This evening I hope to have an audience of Her Majesty the Queen.
§ Mr. CraigenDoes the Prime Minister approve of the suppression of parliamentary debate on the conduct of affairs because she is frit?
§ The Prime MinisterThe hon. Gentleman knows full well that various parliamentary tactics are used in all parts of the House. I do not recall the Opposition complaining when opponents of the Unborn Children (Protection) Bill used a variety of parliamentary devices to try to prevent the private Member's motion of my hon. Friend the Member for Brighton, Kemptown (Mr. Bowden) being reached on 7 June 1985. The hon. Member for Linlithgow (Mr. Dalyell) and the shadow Leader of the House participated in that.
§ Mr. StanbrookAs one who received his first chance of higher education at Birkbeck college, London university, 171 while otherwise in full-time employment, may I ask my right hon. Friend to intervene in the matter of its grant to ensure that it continues to do its splendid work?
§ The Prime MinisterMuch as I admire Birkbeck college and its splendid work, my hon. Friend will be aware that I cannot intervene in the matter of its grant.
§ Mr. SpeakerOrder.
§ Mr. SteelNow that the Foreign Secretary and the Prime Minister's former policy adviser, Sir John Hoskins, have both advocated Britain's joining of the European monetary system, for how long will the right hon. Lady continue to resist it?
§ The Prime MinisterI give the right hon. Gentleman the same reply as I have given previously to the Leader of the SDP. Whether it will be received equally, I do not know. At present, there is no intention of joining the European monetary system. To do so would deny us an option that we have at present. If there was speculation against sterling there would be only two ways of dealing with it if we joined the EMS. One option would be to use up precious reserves, which could be done only to a very limited extent. The second would be by sharply increasing the interest rate. We would be denied the option of taking the strain on the exchange rate. I do not think it right to deny us that option at present.
§ Mr. FallonHas my right hon. Friend noticed that it is the well paid who affect disdain for tax cuts? Does she agree with me that the fastest way to get people back to work in areas of high unemployment like the northern region is through lower taxation, higher take-home pay and social security reform?
§ The Prime MinisterI broadly agree with my hon. Friend. Lower taxes is a long-term way of creating jobs and creating more incentive. There also is a great deal of equity in reducing the level of taxation on those of average and below average earnings.
§ Q2. Mr. McWilliamasked the Prime Minister if she will list her official engagements for Tuesday 10 June.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. McWilliamWill the right hon. Lady take this opportunity to condemn those of her hon. Friends who denied my hon. Friend the Member for Linlithgow (Mr. Dalyell) the right to express his opinion and have it debated in the House? Will she undertake to restore to Back Benchers an additional private Member's motion on Friday?
§ The Prime MinisterOpposition Members cannot bear from this side of the House the tactics that they have frequently used themselves. The House will recall that on 25 March 1965 the late Richard Crossman, assisted by his parliamentary private secretary the hon. Member for Linlithgow (Mr. Dalyell). dragged out a debate on planning to prevent discussion of a private Member's Bill introduced by the late Airey Neave on pensions for the over-80s. They were successful.
§ Mr. HayesDoes my right hon. Friend agree that the Conservative party is the only party with the policies, the will and the determination to defend Great Britain against its enemies?
§ The Prime MinisterYes, the Conservative party is the only party that has a clear, united policy on the defence of this country and would be a reliable ally in time of trouble.
§ Mr. KinnockOn the matter of defending essential British interests, given the very high standards of engineering and technological skills in Rolls-Royce, and the great significance of that company for the manufacturing sector of our economy, will the Prime Minister now give us an undertaking that she will use the full powers of her Government to ensure that British Airways' huge engine order is placed in Britain?
§ The Prime MinisterBritish Airways has asked all three major aero engine manufacturers to provide quotations, as it usually does when considering the purchase of a new aircraft type. When it has completed its evaluation and has made a judgment about how many of the aircraft it wishes to acquire, it will put proposals for approval to my right hon. Friend the Secretary of State for Transport. As the right hon. Gentleman knows, there are arrangements between General Electric and Pratt and Whitney and Rolls-Royce. The essential thing is that Britain wins its orders on merit and performance.
§ Mr. KinnockI fully acknowledge that. First of all, of course, it is necessary for British manufacturing industries to stay in business in order to be able to compete to win those orders. Does she recall that it was the Government of which she was a member who rightly rescued Rolls-Royce from extinction? Does she not believe that she should be much more forthright and positive in her determination to ensure that the interests of that company, its workers and its technologists are properly safeguarded now?
§ The Prime MinisterYes, but the right hon. Gentleman agreed that to be efficient and thriving a company has to win its orders on merit and, in fact, Rolls-Royce does. Why does he not concentrate on the possibility of Rolls-Royce winning on merit? It is for British Airways to evaluate the quotations from the technical and financial point of view. Rolls-Royce supplies the engines for most of the British Airways fleet at present, and I am sure that this will be a factor in BA's judgment, but I hope that Rolls-Royce will win on outright merit.
§ Mr. KinnockSo do I, Mr. Speaker. Is the right hon. Lady going to hat for Britain?
§ The Prime MinisterYes, but one does not bat for Britain by protecting industries that would be inefficient. One bats for Britain by backing industries that win on merit, and that this Government have done with Rolls-Royce—merit.
§ Mr. FormanIs my right hon. Friend aware that virtually all of us on the Conservative Benches support her desire to reduce the burden of taxation on those on average earnings and below? Does she agree that perhaps the most cost-effective way of doing that would be an extension of the earlier policy of my right hon. Friend the Chancellor of the Exchequer to reduce employee national insurance contributions?
§ The Prime MinisterYes, but I think that the better way is to do what my right hon. Friend the Chancellor did in his last Budget. He has concentrated enormously on raising thresholds. However, as my hon. Friend will be 173 aware, there is a very sharp increase as one comes into the first pound on which tax is paid, which is very damaging to incentives. One has to consider all three: the thresholds, the standard rate of tax and the national insurance contributions. I am sure that my hon. Friend will agree that that is exactly what my right hon. Friend the Chancellor has done.
§ Mr. MallonIs the Prime Minister aware of the great concern caused by the very circumstantial suspension of the deputy chief constable of Manchester? Will she assure the House of her vigilance in protecting the integrity of the report that he prepared on Northern Ireland and the integrity of a good and professional policeman?
§ The Prime MinisterAs the hon. Gentleman is aware, the Greater Manchester police authority has appointed the chief constable of West Yorkshire to investigate allegations that have been made. It would not be right for me to comment on the case or its implications while it is under investigation.
§ Mr. CormackWill my right hon. Friend accept that Birkbeck college, which she says she cannot help directly, could be helped enormously indirectly if the fees of mature students were made tax deductible?
§ The Prime MinisterMy hon. Friend is proposing quite a fundamental change in the tax system, and I am sure that my right hon. Friend the Chancellor of the Exchequer will have heard his question.
§ Q3. Mr. Patchettasked the Prime Minister if she will list her official engagements for Tuesday 10 June.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. PatchettDoes the Prime Minister agree with her Secretary of State for Employment that the unemployed in my constituency have never had it so good?
The Prime MinsterPerhaps the hon. Gentleman would quote my right hon. Friend the Secretary of State for Employment accurately, which he did not do. [Interruption.] I understand that my right hon. Friend the Secretary of State for Employment pointed out that those who are working have average earnings and a standard of living that are higher than ever before, but I shall add my own comment. There are occasions when sometimes higher pay for those in work is taken at the expense of putting more out of work.
§ Mr. HoltDid my right hon. Friend see last night's "Panorama" programme on unemployment in Cleveland? If not, will she kindly do so and take instructions to ensure that Smith's Dock is not closed?
§ The Prime MinisterNo, I did not see the "Panorama" programme last night. My hon. Friend will be aware that the problem with shipbuilding in this country stems from a shortage of orders, particularly for merchant ships. Unless there are more orders about, it will not be possible to keep all our merchant shipyards going. It is, of course, a matter of great regret that some of them have had to close.
§ Q4. Mr. Pendryasked the Prime Minister if she will list her official engagements for Tuesday 10 June.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. PendryWill the Prime Minister find time today to meet the director general of the British Tourist Board? If she does, she will discover that as a result of her slavish actions towards American foreign policy, especially the mad-hatted and ill-conceived bombing of Libya, hundreds and thousands of would-be American tourists arc not coming to this country, resulting in millions of dollars being lost to our economy. As that is the result of her statements and action, what is she positively doing to rectify the situation?
§ The Prime MinisterI hardly think that the hon. Gentleman's question is calculated to get more American tourists to come here, but I hope that they will return to this country, and we are doing everything possible to that end.
§ Mr. HaywardWhen my hon. Friend considers the comments of the Leader of the Opposition, will she bear in mind that this Government funded the RTM 322 through Rolls-Royce, the European fighter aircraft which is powered by Rolls, the AVM, which is powered by Rolls, the Hawk trainer, which is powered by Rolls and which has been sold to the United States, and the IAE 2500 engine, which is also partly owned by Rolls?
§ The Prime MinisterI congratulate my hon. Friend on his carefully rehearsed question. I hope that Rolls-Royce will win on merit. It does no good for the efficiency of British industry to protect it from foreign competition. That is the way to reduce our efficiency and ultimately to reduce our standard of living.
§ Q5. Mr. McNamaraasked the Prime Minister if she will list her official engagements for Tuesday 10 June.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. McNamaraDoes the right hon. Lady believe that France, Germany, Italy, the United States and all our other competitors, if placed in the position that is faced with British Airways, with a major industry having a major contract, would, under any circumstances, allow it to go abroad?
§ The Prime MinisterRolls-Royce, as the hon. Gentleman knows, has arrangements with the two other big aero engine competitors which I have mentioned. An order for one often means a great deal of subcontracting to the other. I repeat what I have said. Rolls-Royce and other industries have to win on merit. If the hon. Gentleman wants universal protectionism, that will be bad for our exports and bad for our standard of living.
§ Q6. Mr. Wattsasked the Prime Minister if she will list her official engagements for Tuesday 10 June.
§ The Prime MinisterI refer my hon. Friend to the reply that I gave some moments ago.
§ Mr. WattsIs my right hon. Friend aware that many successful small businesses in my constituency and elsewhere do not look to the Government for cash handouts, but wish to have better access to Government contracts, in particular, the £34 billion a year which is spent on purchases of goods and services? Will she take steps to ensure that such better access is made available to the small business sector?
§ The Prime MinisterI know my hon. Friend's concern about this matter. It is important that small firms are able 175 to compete for Government contracts. I think that he is aware that the central unit on purchasing is examining, with purchasing Departments, small firms' access to 176 Government contracts. We expect to receive its report towards the beginning of July, and I shall keep in touch with my hon. Friend.