§ Q1. Mr. CranTo ask the Prime Minister if he will list his official engagements for Tuesday 29 March.
§ The Prime Minister (Mr. John Major)This 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.
§ Mr. CranWould my right hon. Friend care to take this opportunity to assure foreign business men and tourists —and indeed, almost everyone else who comes to the United Kingdom—that they have been grossly misled into thinking that coming into the United Kingdom is a dangerous occupation? Would he confirm that using British aircraft and British airports is almost as safe as using those anywhere else in the world and that stringent security arrangements are in place? Will he confirm that they will stay in place as long as the threats, to which we are accustomed, continue?
§ The Prime MinisterI am happy to give my hon. Friend that assurance. A great deal of effort has gone into ensuring that our aircraft and all other modes of transport are entirely safe. My hon. Friend is quite right. There is no question of people in this country being intimidated by terrorism. I hope very much that the usual clutch of visitors will come to this country, where they will find the usual warm welcome.
§ Mr. KinnockIs it not clear to the right hon. Gentleman that, with unemployment rising, and output and investment falling, his interest rate policies have pushed Britain back into slump? Will he now change those policies before he inflicts further damage on British jobs, on British enterprise and on British competitiveness?
§ The Prime MinisterI must say to the right hon. Gentleman that the thrust of policy is geared to dealing with the principal economic problem in front of us—the reduction of inflation—so that the economy may again begin to grow. That is the thrust of policy and it will continue to be so.
§ Mr. KinnockCan the Prime Minister tell us how on earth cutting investment combats inflation? Is it not obvious to him that weakening British industry now will weaken the British economy in the future?
§ The Prime MinisterAs the Confederation of British Industry said yesterday in its report, it is encouraging that most employers expect to maintain spending on innovation and to maintain or increase spending on training. The right hon. Gentleman must recognise the substantive point that what really destroys the effectiveness of investment in this country is inflation, when it gets out of hand and when people can see that investment will not yield a proper reward.
§ Mr. KinnockDoes the Prime Minister acknowledge that, if British industry is to begin recovery in the course of this year, he must cut interest rates now and find a sensible way of restraining consumption? What is happening now is ruinous.
§ The Prime MinisterWhen it is appropriate to reduce interest rates, people do so. I remind the right hon. Gentleman that he was urging us to join the exchange rate mechanism when the exchange rate was DM 2.95. We will reduce interest rates when it is appropriate to do so.