HC Deb 11 July 1991 vol 194 cc1083-4
Q3. Mr. Ian Bruce

To ask the Prime Minister if he will list his official engagements for Thursday 11 July.

The Prime Minister

I refer my hon. Friend to the reply that I gave some moments ago.

Mr. Bruce

My right hon. Friend will know that the people of south Dorset believe in a strong, credible and clearly stated defence policy. Will he ensure that the policy for defence is both credible and will deter aggression, and that it is well understood? That will be in contrast to the party opposite, which believes in fudged words, so as to avoid the wrath of its Back Benchers.

The Prime Minister

My hon. Friend is right, and I believe that he speaks for many people who do not trust the Opposition on defence. Yesterday, they produced a defence policy which appeared to protect them rather than the country. People will have noticed that. One cannot defend the country with a couple of sentences tucked away in an article in The Guardian. This country knows the Opposition only too well and it knows their unilateralist tendencies.

Mr. Wilson

Less than a week ago, the Bank of England was giving a clean bill of health to the Bank of Credit and Commerce International. Less than a week ago, the Department of the Environment was issuing that bank's name as one suitable for local authorities to deal with. If officials of these two organisations, sitting in the heart of London, can make such a catastrophic error, does the Prime Minister have any sympathy with the officials of small local authorities in far-flung parts of the country which might have taken the advice of the Bank of England and the Department of the Environment? Will the Government and the Bank of England face up to their responsibilities in this matter?

The Prime Minister

The Bank of England acted as soon as it had evidence on which to act, and that has been made clear. It would not be right to give preferential treatment to local authorities over other depositors of the BCCI. Any accountant of finance director should know that if an institution pays over the market rate of interest, it is in the form of a risk premium. Local authorities have a duty of care over the funds entrusted to them and that implies taking a prudent view of risk and spreading risk.

Q4. Mrs. Maureen Hicks

To ask the Prime Minister if he will list his official engagements for Thursday 11 .July.

The Prime Minister

I refer my hon. Friend to the reply that I gave some moments ago.

Mrs. Hicks

Can my right hon. Friend confirm that in the drawing up of the Government's Green Paper on industrial relations, he will take full account of the poll in The Guardian today, which shows clear majorities against a return to secondary action, flying pickets and unofficial strikes—policies which are all supported by the Labour party?

The Prime Minister

I can certainly give my hon. Friend that assurance. Our trade union legislation has brought unprecedented improvements in industrial relations. Of course, they are unprecedented improvements which are not welcome to the Labour party. As Mr. Ron Todd said earlier this week: Tory industrial relations law has got to go. There is no fudging the issue. Labour's position is absolutely clear. As the right hon. Member for Isiwyn (Mr. Kinnock) said when he spoke to the TGWU yesterday—[Interruption.] As the right hon. Gentleman said—[Interruption.] I can wait, Mr. Speaker —[Interruption.]

Mr. Speaker

Order. Let us hear the end of the Prime Minister's answer.

The Prime Minister

I know that Labour Members are embarrassed by what their leader said, but they are going to hear it. He said about the TGWU: This union is the Labour party in so many ways. He was right. The union calls the shots, it chooses the policies, and it even picks the leaders.