§ Q1. Mr. Heathcoat-Amoryasked the Prime Minister if she will list her official engagements for Thursday 5 November.
§ The Prime Minister (Mrs. Margaret Thatcher)This morning I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in the House I shall be having further meetings later today.
§ Mr. Heathcoat-AmoryDoes my right hon. Friend agree that the weak link in the world economy is the American budget deficit? Will she urge President Reagan to learn from our record of prudent public finance, which has brought us close to a balanced budget? Will she warn the President against accepting the advice of the British Opposition, whose polices of reckless extravagance would have created exactly the same problems in this country?
§ The Prime MinisterAs my hon. Friend knows, negotiations are going ahead between President Reagan and Congress to reduce the budget deficit. We are anxious that those negoitations should succeed and are giving every support and encouragement. I have been directly in touch with the President about the matter. As I told the House last week, a convincing package to reduce the United States budget deficit is a vital first step towards restoring confidence in the financial markets. I agree with my hon. Friend that we must not listen to the Opposition about deficits. I remember the time when they had the budget deficit up to 9.25 per cent. of gross domestic product, which would be the equivalent of £39 billion today.
§ Mr. SteelCan the Prime Minister explain why it makes sense to resist spending on public investment while increasing electricity charges to industry by £900 million? Does it not mean that energy costs for British industry will be higher than those of our competitors, and at a time when she is urging our industries to be competitive?
§ The Prime MinisterIf the right hon. Gentleman wants increased investment — and I believe that he does because I am always being urged to do more—it must be paid for. When electricity prices are increased, our industries will still be able to compete with overseas countries on energy prices. Indeed, in many cases their electricity charges will be lower than those of their overseas competitors.
§ Mr. Neil HamiltonWill my right hon. Friend confirm that, if possible, over the period of this Parliament the Government will reduce the basic rate of income tax to below even the 25p rate to which we are already committed? Is it not contemptible that although Labour Members are always prepared to support increases in taxes and rates for others, they are not prepared to support even a 5 per cent. levy on themselves to keep their bankrupt party in business?
§ The Prime MinisterI am sure that my hon. Friend will agree that our right hon. Friend the Chancellor has been extremely successful in his economic policy. The growth has enabled us to have both reducing taxation as a proportion of national income and increased spending on social services. It is an excellent record, which is recognised throughout the world.
§ Q2. Ms. Ruddockasked the Prime Minister if she will list her official engagements for Thursday 5 November.
§ The Prime MinisterI refer the hon. Lady to the reply that I gave some moments ago.
§ Ms. RuddockAlthough the Prime Minister and her Government constantly reassure us that all is well in the National Health Service, is the right hon. Lady aware that, to comply with Government financial limits, the management of the Lewisham district hospital is drawing up plans to close one surgical ward and two out of four of its new operating theatres, thus reducing that major general hospital to an emergency-only unit from now until the end of the financial year, with a consequent quadrupling of its waiting list? Is the Prime Minister prepared to allow people to die in Lewisham?
§ The Prime MinisterThe hon. Lady is aware that spending on the National Health Service has increased enormously over the country as a whole and that many more resources have been directed to it. Like me, she is a London Member and will be aware of the policies of all parties on the reallocation of proceeds, so that more money has been put into the northern part of the country and other non-London seats so that their services can be improved. I agree that that has sometimes been at the expense of other areas. However, would the hon. Lady like us to take that money away from the north?
§ Q3. Mr. Gregoryasked the Prime Minister if she will list her official engagements for Thursday 5 November.
§ The Prime MinisterI refer my hon. Friend to the reply that I gave some moments ago.
§ Mr. GregoryWill my right hon. Friend confirm that local authorities such as York need not wait until the 1064 enactment of the Local Government Bill to put services out to competitive tender, and that only those local authorities that are either inefficient or corrupt will resist the legislation?
§ The Prime MinisterMy hon. Friend is correct in saying that there is no need to wait for the passage of the Bill before putting contracts out to competitive tender. Many local authorities have already done so and Wandsworth, for example, has already saved about £5 million a year. Other authorities have saved about £20 million a year. Authorities that have put contracts out to competitive tender have saved between £5 million and £10 million annually. The Bill will ensure that local authorities put contracts out to competitive tender. I hope that York will follow the example of many other local authorities which have done so successfully.
§ Mr. KinnockWith so many health authorities, north and south, running into deficit just six months into the financial year, will the Prime Minister be saying to them, in the words of her Minister for Health to the Royal College of Nursing yesterday:
You will need your money for the winter as well you know. Do be careful that you don't leave yourselves short."?
§ The Prime MinisterAs the right hon. Gentleman is aware—he was in for part of the Autumn Statement—the proceeds available to the Health Service have been increased overall by about 30 per cent. in real terms during the lifetime of this Government. I remind him that during the lifetime of the Labour Government the amount of money that was applied to the Health Service actually went down in one year—[Interruption.]—
§ Mr. SpeakerOrder. The Prime Minister has been asked a question and she must be allowed to answer it.
§ The Prime MinisterI hope that people realise that the Government's policies have led to the growth that has enabled us to devote more resources to the Health Service than any other Government ever provided.
§ Mr. KinnockAs the area health authorities and others have made it clear that a rise in excess of £900 million will be required simply to enable them to provide the same service next year as this year, the right hon. Lady should not take too much pride in the illusory rise that was offered in the Autumn Statement. Will she accept that what the Minister for Health was saying to the health authorities and what she is saying to them now is, "Do not treat too many patients in case your money runs out", and by the same token is she not saying to patients, "Try not to be ill at the wrong time in the financial year"?
§ The Prime MinisterPerhaps the right hon. Gentleman has forgotten that a special allocation of £25 million was made to reduce waiting lists this year, with a further £25 million to reduce them next year. Opposition Members appear to want more spending regardless, which is exactly the attitude that has caused other countries to be in difficulties because of the size of their deficit. We are not going back to the £39 billion deficit that we would have had if we had gone up to 9.25 per cent.
§ Mr. KinnockDoes the Prime Minister realise that the pre-election allocation to cut waiting lists induced many health authorities to undertake certain programmes which mean that they are now being penalised for their success? They are running out of money before the end of the financial year. Does the right hon. Lady not know enough 1065 about the public health sector to realise that there are people in Britain who cannot get the treatment that they want in the decade that they want?
§ The Prime MinisterThe waiting list money was extra money and was a special allocation. The authorities were asked to put forward bids for it. They did. Once again, in 1979 spending on the Health Service was £8 billion.[Interruption]
§ Mr. SpeakerOrder. The Prime Minister must be given an opportunity to reply.
§ The Prime MinisterOpposition Members will try to drown out the facts because they do not like them.
In 1979, expenditure on the Health Service was £8 billion. In 1987–88 it will be £20.5 billion. That is an enormous increase, which has come about under this Government and for which many people are thankful.
§ Mr. William PowellIs my right hon. Friend aware that in 1986, in the former unemployment black spot of Corby, unemployment fell by 25 per cent.? Projections are for an additional 38 per cent. reduction in 1987 and for a 30 per cent. reduction in 1988, which will mean that unemployment in Corby will be as low as it is in Esher, Epsom and Dorking. Does my right hon. Friend recall that the closure of the Corby steelworks was announced in March 1979, and that the reason for the recovery in Corby has been the Government's policies? Will she ensure that the lessons of the Corby phenomenon are applied to all other unemployment black spots in the country?
§ The Prime MinisterI congratulate my hon. Friend on the excellent record of his constituency, which has ensured that extra jobs have been created. It has welcomed the efforts of private enterprise. If some other places would do the same, they might achieve the same satisfactory results.
§ Q4. Mr. Alex Carlileasked the Prime Minister if she will list her official engagements for Thursday 5 November.
§ The Prime MinisterI refer the hon. and learned Gentleman to the reply that I gave some moments ago.
§ Mr. CarlileWill the Prime Minister find time in her busy schedule to hear the Deputy Prime Minister say on Radio 4's "Analysis" programme tonight that the Government's school opt-out proposals will be defeated in the other place? What will be her reaction to that defeat? Will she abandon the proposals in accordance with the views of peers and parents, or will she do as page 2 of The Times today suggests she wants to do; that is to say, to emasculate the powers of the other place?
§ The Prime MinisterThe Government's opt-out proposals will, I believe, go through Parliament and become law. Does the hon. and learned Gentleman wish to cut and reduce parents' choice? Is that the Liberal party's programme?
§ Q5. Mr. Yeoasked the Prime Minister if she will list her official engagements for Thursday 5 November.
§ The Prime MinisterI refer my hon. Friend to the reply that I gave some moments ago.
§ Mr. YeoDoes my right hon. Friend agree that the Autumn Statement included a remarkable combination of 1066 substantially lower public borrowing, large increases in spending on education and health, and a reduction in the proportion of gross domestic product absorbed by the public sector? That fact, coupled with the prospect of further tax cuts in the next Budget, is a far more eloquent tribute to the underlying strength of the British economy than the gyrations on the stock exchange.
§ The Prime MinisterYes, it shows a year of superb financial management by my right hon. Friend the Chancellor of the Exchequer.
§ Q6. Mr. Ray Powellasked the Prime Minister it' she will list her official engagements for Thursday 5 November.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. PowellWill the Prime Minister ensure that further electricity price increases will not be imposed to affect the profits of privatisation? Will she consider the poor and the pensioners, who rely on off-peak electricity? Will she ask her Minister to ensure that pensioners and the poor are protected?
§ The Prime MinisterThe hon. Member will be aware that the heating additions have now reached some £430 million a year—a record. I really do not see why we should take lectures on electricity price increases from the Labour party. In May 1974 there was an increase of 27.8 per cent. and in the following year, April 1975, there was an increase of 48 per cent.
§ Mr. BellinghamWill my right hon. Friend find time today during her busy schedule to consider the position of small investors? Does she agree with me that the average small investor, unlike some sections of the City of London, is not a punter or a gambler, but someone who has confidence in the management of the economy and someone who is investing in top British companies?
§ The Prime MinisterI agree with my hon. Friend. Most small investors invest for the long term. They purchase shares, they have faith in the company and they purchase those shares to get a dividend. They keep those shares and they have been very steady during the recent problems on the stock exchange.
§ Q7. Mr. Lofthouseasked the Prime Minister if she will list her official engagements for Thursday 5 November.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. LofthouseEarlier this afternoon the Prime Minister referred to the allocations to health authorities to enable them to shorten waiting lists. Is she aware that the Pontefract area health authority's allocation was in the region of £100,000 and that that authority produced a scheme that would reduce waiting lists by 660 patients? Is she further aware that that scheme was turned down by the consultants at the health authority's hospital in Pontefract? A second scheme was accepted by the consultants, for that money to be transferred to the private hospital at Methley park, but that will produce only 300 operations for the same amount of money. Does she believe that that represents efficiency in the National Health Service?
§ The Prime MinisterThe hon. Gentleman should make his complaints to those who decided which scheme would 1067 achieve the best value for money. In fact, £25 million has been allocated and will result in many people having operations who otherwise might not have got them. In 1068 England — this affects the hon. Gentleman as well as myself— the number of people on waiting lists is greatly below what it was in 1979.