§ Q2. Mr. Allan Robertsasked the Prime Minister if she will list her official engagements for Tuesday 27 October.
§ The Prime MinisterThis morning I had meetings with ministerial colleagues and others. In addition to my duties in the House I shall be having further meetings later today. This evening I hope to have an audience of Her Majesty the Queen.
§ Mr. RobertsIn the light of the BP share issue fiasco, have the Government revised down the amount of money that they expect to raise from selling off our water industry? They estimated that they might raise £8 billion, even though the assets are worth £29 billion; so they were selling it off cheaply anyway. Are they going to raise about £3 billion-£4 billion now, bearing in mind that it will cost between £2 billion to £3 billion to install water meters on a compulsory basis in every home?
§ The Prime MinisterWith regard to water privatisation, there is a paving Bill before the House that will have to go through the House, and there will be other legislation before that process can be completed.
With regard to BP, the underwriters have made representations to the Treasury that the BP issue should be withdrawn, and my right hon. Friend the Chancellor of the Exchequer is considering those representations, as he is contractually bound to do under the terms of the underwriting agreement. He will explain the procedures in the statement that he is to make shortly.
§ Sir Peter TapsellMay I put it to my right hon. Friend that the present crisis in stock markets around the world is primarily an international rather than a national problem, and that it needs an internationally co-operative response? In particular, it needs, first, an early announcement by the Federal Republic of Germany that it intends to reduce its interest rates. Secondly, it needs an early announcement from the President and the Congress of the United States that they intend to put up their taxes. Thirdly, it needs continuing international supervision and control of the new and ever-proliferating financial mechanisms, which, if necessary, will prohibit some of those speculative instruments so that we shall not all he faced by an international financial Frankenstein.
§ The Prime MinisterWith regard to the several points that my hon. Friend has made, I would agree with him that the matter of the United States' budget deficit needs dealing with. I believe that it is being dealt with by the President and Congress. I agree with my hon. Friend that that is a significant part of the matter. With regard to the co-operation of Germany and, of course, Japan, I point out that the Louvre agreement was reaffirmed by Mr. Baker, Mr. Stoltenberg and Mr. Poehl, and that has had a considerable effect on exchange rates. I also point out that interest rates have been falling, particularly at the long end of the market, as people have gone into gilts and bonds. We have reduced our interest rates recently, as my hon. Friend knows, so we have played our full part in sound financing, for which I have sometimes been criticised, but which has turned out to be the safest thing that we could possibly have done.
§ Mr. KinnockIt is clear, as the Prime Minister said, that the underwriters of the BP share issue do not consider the 166 sale to be a proper underwriting risk in terms of the prospectus. Does the right hon. Lady agree or disagree with them?
§ The Prime MinisterI think, perhaps, that the right hon. Gentleman could not quite hear what I said earlier. He will know that I am restricted as to what I can say—
§ The Prime MinisterFor legal reasons. The right hon. Gentleman also knows that the Chancellor is to make a statement. Therefore, I repeat what I said: the underwriters have made representations to the Treasury that the BP issue should be withdrawn. The Chancellor is considering those representations, as he is contractually bound to do under the terms of the underwriting agreement and he will explain the procedures in the statement that he is to make shortly.
§ Mr. KinnockThe Prime Minister knows very well that there is no legal consideration that forbids her responding, especially when the underwriters have made their position so clear. Indeed, she has an absolute duty under the prospectus to respond. Is she not aware that the absence of a firm decision only prolongs and increases instability? Is not the Prime Minister's refusal to say what the position is a pathetic evasion of responsibility when the underwriters have made their position so clear?
§ The Prime MinisterWith all due respect, I do not think that the right hon. Gentleman has taken full account of what I said. The Chancellor is contractually bound to consider the representations. Under the terms of the underwriting agreement he must give due and proper consideration. That is what he is doing.
§ Mr. KinnockThe Prime Minister knows that the underwriters made their representations yesterday. Everybody knows that the Chancellor has an obligation to discuss the matter with them and, in the event of failure to agree, to consult the Bank of England. I ask again, why the delay? Why is the Prime Minister prolonging instability?
§ The Prime MinisterThe right hon. Gentleman knows that the Chancellor must genuinely go through the procedures. That is what he is doing. The right hon. Gentleman also knows that there is a private notice question from his Front Bench on precisely this matter.
§ Mr. Beaumont-DarkDuring my right hon. Friend's busy day, did she have a chance this morning to hear Sir Nicholas Goodison, the chairman of the stock exchange, whose motto is "My word is my bond"—[Interruption.]
§ Mr. SpeakerOrder.
§ Mr. Beaumont-DarkThe chairman of the stock exchange, whose motto is "My word is my bond", said that the BP issue was fully underwritten and should go ahead. Underwriters have done well for some years, and now is the time for the motto "My word is my bond" to be taken up.
§ The Prime MinisterAs my hon. Friend is aware, my right hon. Friend the Chancellor must follow the procedures that he is contractually bound to follow. If he were not to follow those he would be the subject of criticism. He is following them and will make his decision and announcement, not today, but in due time.
§ Q3. Mr. Allen McKayasked the Prime Minister if she will list her official engagements for Tuesday 27 October.
§ The Prime MinisterI refer the hon. Gentleman to the reply that I gave some moments ago.
§ Mr. McKayWhen the Government come to make a decision on the BP flotation, which group will be the most important — the small shareholder or the fat cat underwriter?
§ The Prime MinisterI cannot add to what I have already said. The Chancellor will be answering further after Question Time.
§ Mr. CormackWill my right hon. Friend try to find time today to consider the desperate plight of the haemophiliac AIDS victims who are suffering through no fault of their own and who many hon. Members believe deserve very special consideration?
§ The Prime MinisterI will, of course, discuss this matter with my hon. Friend the Minister for Health.
§ Mr. WareingWill the Prime Minister say what advice I should give to people in my constituency who have taken her advice and invested in private occupational pension funds? Those constituents are now at risk because of the belief in market forces, to which she has been telling us we should respond. What advice should pension fund holders be given in relation to any BP issue?
§ The Prime MinisterIn general, the market is just about where it was just before the turn of the year, and very much higher than it has been on previous occasions.
§ Q4. Mr. John Townendasked the Prime Minister if she will list her official engagements for Tuesday 27 October.
§ The Prime MinisterI refer my hon. Friend to the reply that I gave some moments ago.
§ Mr. TownendIs my right hon. Friend aware that many of my constituents are furious at the persistent attacks on the Government and herself by Commonwealth Prime Ministers, many of whom are leaders of one-party states condemned by Amnesty International? Is it not time that they were told that in future the ruder they get the smaller will be their allocation from our very large overseas aid budget?
§ The Prime MinisterI appreciate my hon. Friend's concern, but I think that he will agree, after a moment's reflection, that we must give aid according to where people need it most. That has been, and will continue to be, our policy.
§ Mr. FauldsAs the Prime Minister's—[HON. MEMBERS: "Reading".] Some of us choose our words carefully.
As the Prime Minister's separation from reality increases and the corruption of power mars her judgment ever more, will she contemplate today that in the last three general elections she was returned on a minority of the votes of the British electorate? Will she understand that that basis does not justify her policies of destroying the welfare state, wrecking British industry and slavishly backing every misjudgment in international affairs that the American President makes?
§ The Prime MinisterNor does the Labour party's performance during the last election or since lead me to listen to it, from any front.
§ Q5. Mr. Gerald Bowdenasked the Prime Minister if she will list her official engagements for Tuesday 27 October.
§ The Prime MinisterI refer my hon. Friend to the reply that I gave some moments ago.
§ Mr. BowdenWill my right hon. Friend spare some time today to reflect upon the success of the Government's right-to-buy policies, whereby some 1 million families, formerly tenants, now enjoy the security and independence of home ownership? Will she join me in deploring the delay and delaying tactics of some councils in dealing with right-to-buy applications? I have constituents who have waited. for 18 months to two years before their applications have been dealt with, and I believe that Southwark council has some 2,000 applications before it at the moment.
§ The Prime MinisterI join my hon. Friend in deploring any delays in allowing tenants to take up their right to buy. My hon. Friend will know that in extreme cases the Department of the Environment can take over from the local authority the entire right-to-buy responsibility for council houses. Therefore, perhaps he would have a word with our right hon. Friend the Secretary of State for the Environment.