Engagements (Hansard, 11 July 1991)

§ Q1. Sir Patrick Duffy
To ask the Prime Minister if he will list his official engagements for Thursday II July.

§ The Prime Minister (Mr. John Major)
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.

§ Sir Patrick Duffy
Is the Prime Minister aware that whatever reservations hon. Members may have about the rigour of his counter-inflation policy and its impact on growth, jobs and investment, it would attract more support if the Government had a more even-handed approach to it? How does he explain, for example, the statement last night by the latest power chief to receive a big pay rise—Mr. Weston of MANWEB—that the Government knew that his salary would soar?

§ The Prime Minister
As the hon. Gentleman may know, the gentleman concerned has withdrawn that statement and withdrawn it unreservedly. As MANWEB said: the higher levels of pay were not agreed until after the offer for sale was announced in November 1990. The Government did not place any restriction on the regional electricity companies in announcing likely figures at any time. That was what was said and I endorse that as an accurate statement. Salaries after privatisation are and must be a matter for the company. But I have made my view perfectly clear; in my judgment those salaries should reflect what is reasonable. But it is a matter for the companies and not for me.

§ Sir John Farr
Might I ask my right hon. Friend whether he has had a chance today in his list of engagements to look at the recent announcement by the Labour party that it apparently intends to—

§ Mr. Speaker
Order. The question must refer to the Government's responsibility. I know that the hon. Gentleman has been away for a while, but his question must refer to the Government's responsibility.

§ Sir John Farr
I wonder whether my right hon. Friend will see it as his responsibility today to have an early debate on our nuclear deterrent and the need for us to keep it. Apparently the Opposition's policy has suddenly changed. Rather than an announcement in the media, we should have a full, proper and open debate on the Floor of the House.

§ The Prime Minister
First, I welcome my hon. Friend back to the House after his absence. We are very pleased to see him back in his place.
My hon. Friend touched on defence, a matter of great importance not just to the House but to everyone in it and beyond it. I believe that there is considerable doubt about the position of the Opposition on defence, and I hope that they will take an early opportunity to make it clear whether they are unilaterialist and in what circumstances they would use nuclear weapons.

§ Mr. Hattersley
Does the Prime Minister still stick to his prediction that the British economy will recover during the second half of this year?

§ The Prime Minister
Apparently the right hon. Gentleman does not want to discuss defence quite so soon. I remain of the opinion that I have expressed before in the House and which has been endorsed by the OECD and the CBI: that we shall begin to move out of recession in the second half of this year.

§ Mr. Hattersley
Has it escaped the Prime Minister's notice that the second half of the year began 11 days ago.

Hon. Members
Oh!

§ Mr. Speaker
Order.

§ Mr. Hattersley
If the right hon. Gentleman's prediction has any veracity why are we still at the bottom of the economic league? Why do we have the worst record of investment, unemployment and growth of all the G7 countries?

§ The Prime Minister
The right hon. Gentleman might study the diary a little more closely to find out how long the second half of the year lasts. As usual, he is facing backwards. Five per cent. off the inflation rate and 3.5 per cent. off interest rates are both essential ingredients to get the economy moving again. That has happened and it will continue.

§ Mr. Hattersley
With reference to the diary, I take it that the Prime Minister is now saying that the economy will begin to improve by Christmas. Every time he makes a prediction about improvement, he gets further and further away. I shall therefore ask him a simple question based on his own pathetic analysis of when the economy might begin to improve. First, can we be assured that by Christmas and in the three areas about which I have asked the right hon. Gentleman—investment, unemployment and growth—this country will be doing at least as well as Greece, Portugal and Turkey? May we also be assured —[Interruption.]

§ Mr. Speaker
Order.

§ Mr. Hattersley
Will the Prime Minister now also answer the question from which he ran away last Tuesday? Since, during the three years of decline, he has been Chief Secretary, Chancellor and Prime Minister, will he accept his own responsibility for those three years of disaster?

§ The Prime Minister
On the subject of predictions, with which the right hon. Gentleman began his lengthy third question, he will recall predicting that unemployment would be 4 million in 1987—he is in no position to talk about predictions. As for the position at the end of the year, as a former sacked shadow Chancellor the right hon. Gentleman should know that we will set out our predictions in the autumn statement.

§ Sir Peter Emery
Will my right hon. Friend assure the House that he and his Government will ensure that the military level of our forces will always be sufficient to meet the defence needs of the realm and of our military commitments overseas?

§ The Prime Minister
Yes, Sir.