HC Deb 23 February 1995 vol 255 cc480-3
Ql. Mr. Watson

To ask the Prime Minister if he will list his official engagements for Thursday 23 February.

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.

Mr. Watson

Yesterday, the Prime Minister announced detailed plans for a legislative assembly in Northern Ireland. Does he understand that, by doing so, he has conceded that power can and should be devolved to each of the constituent countries of the United Kingdom, precisely because each of those countries is distinct and different? When can we expect framework documents that meet the clearly expressed demands for a Welsh Assembly and a Scottish Parliament from the people of those countries?

The Prime Minister

I do not accept the hon. Gentleman's parallel. There are a range of distinct differences between the position faced in Northern Ireland and elsewhere in the UK.

Mr. Watson

What are they?

The Prime Minister

With your permission, Madam Speaker, I shall tell the hon. Gentleman what those differences are. In Northern Ireland, the Assembly will not be tax raising. The Assembly proposed for Scotland would be. In Northern Ireland, there has been a sectarian divide of remarkable proportions for years. That does not exist elsewhere. In Northern Ireland, neither of the parties can form part of the UK Government and lead that Government. That does not apply in any other part of the UK. In Northern Ireland, because of its history, there has been an Assembly in the past. That does not apply elsewhere. In Northern Ireland, a part of the population may wish to form part of a foreign country. That does not apply anywhere else. Those are some of the differences. I can stretch that list to the corner of the Chamber and back again.

Q2. Mr. Hawkins

To ask the Prime Minister if he will list his official engagements for Thursday 23 February.

The Prime Minister

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

Mr. Hawkins

Does my right hon. Friend agree that, where councils can be described as mean-minded cocktails of political correctness, inefficiency, bureaucracy and waste, that is a matter for condemnation? Does he further agree that councils like Labour Blackpool and socialist Lancashire have been accurately so described by Mr. Leo McKinstry, a recent close adviser to Labour Front-Bench spokesmen?

The Prime Minister

I am not always apt to accept the words of Labour spokesmen, either past or present, but, on this occasion, I am prepared to make an exception and to agree with Mr. McKinstry.

Mr. Blair

Does the Prime Minister agree with the director of the Gas Consumers Council that, although the City may view the £1 billion profit of British Gas as reasonable, consumers will take a different view?

The Prime Minister

I think that consumers wish to see the lowest possible gas price. Consumers will also be pleased with the fact that the gas price has fallen by something over 20 per cent. since privatisation. They will welcome the fact that the Gas Consumers Council represents gas consumers' interests and deals with complaints. I much prefer profits to losses, provided that there is a good service for customers, and that the price, which the regulator seeks to determine, is right. Profits yield taxes for meeting our public services. In the past, these same public utilities have drained public resources through subsidy.

Mr. Blair

Just on prices, gas prices fell in the three years before privatisation. They have risen in real terms since 1979. They rose last year in real terms, and they will rise again next year. [Interruption.] They rose last year in real terms, and they will rise again. [Interruption.]

Madam Speaker

Order. Both sides of the House must cool down. I want to hear what the right hon. Gentleman has to say.

Mr. Blair

Is that not the contrast between pay excesses at the top and pay cuts and redundancies for the rest, between vast monopoly profits and a tide of consumer complaints? Let me tell the Prime Minister and the Conservative party—[Interruption.] Yes, pay excess at the top and salary cuts for the rest. I tell them, until—[Interruption.] I see the yobbos are out in force today. We will continue to speak for the British people on this issue. Until those companies are properly regulated in the public interest, they will continue to be seen, rightly, as the unacceptable face of privatisation.

The Prime Minister

The right hon. Gentleman rather dashed around the dates in order to make the case that he put before the House. As he knows, at the time of privatisation we put in a regulator to ensure that customers get the best deal possible. Since privatisation, prices have fallen by over 20 per cent. for domestic consumers, even after allowing for inflation. That is the reality. It is also the reality that, for many years while they were in the public sector, the nationalised industries cost the British taxpayer £50 million a week in subsidies. Now they are yielding money for the Exchequer to deal with public services and other matters. The right hon. Gentleman knows that that is the case. He knows that a more efficient service is being provided, and he has offered no alternative whatsoever.

Mr. Mark Robinson

Will my right hon. Friend take time out of his busy schedule to find the right hon. Member for Yeovil (Mr. Ashdown) and to tell him that there is still time for Liberal Democrat-controlled councils, including Somerset, to set aside some of their pet projects and to put children's education first?

The Prime Minister

I have no objection to raise at the absence of the right hon. Member for Yeovil (Mr. Ashdown) and I am sure that my hon. Friend's message for the right hon. Gentleman was taken on board by his right hon. Friend the Member for Berwick-upon-Tweed (Mr. Beith) and will be faithfully relayed to him.

Mr. Beith

May I have instead a message for all those people whose incomes are just above the level at which they would qualify for free prescriptions and whose chronic illnesses are not on the list which would qualify them for free prescriptions? Those people now have to pay 26 times more for prescriptions than they did in 1979. Is that a fair rate of inflation for such a vulnerable group of people?

The Prime Minister

I can give the right hon. Gentleman a message in addition, rather than instead. As he knows, over 80 per cent. of prescriptions are dispensed free. Pensioners, pregnant women, children and those on low incomes all have their prescriptions free. A total of 333 million free prescriptions are dispensed every year. I believe that it is fair that those who can afford to pay should do so.

Even after the increase that has been made, the prescription charge will be well below the average cost of medicines to the national health service. The resources raised from that charge, paid for by people such as the right hon. Member for Berwick-upon-Tweed, myself and many others, are enough to pay for 75,000 hip replacements, 33,000 heart valve replacements or 235,000 cataract operations. That is the reality. The money does not go to the Exchequer: it is made available to help increase the resources for the health service to meet the needs of people.

Mr. Barry Porter

In the document published yesterday, the Prime Minister said that he cherished the Union, and he went on to say in his statement that he was a Unionist. Will he take every opportunity to reinforce, underline and emphasise that commitment?

The Prime Minister

I believe that the efforts that the Government have been making to try to ensure that the strife and difficulties that have taken place in part of the United Kingdom for so long are brought to an end is a clear and compelling reason for my hon. Friend to accept what I said yesterday.

Q3. Mr. Hain

To ask the Prime Minister if he will list his official engagements for Thursday 23 February.

The Prime Minister

I refer the hon. Member to the answer I gave some moments ago.

Mr. Hain

Did the Prime Minister sanction the Minister for Health telling the BBC's "PM" programme last night that the prescription charge increase would help to finance the nurses' pay award? Does he accept that there is public disgust at the way that the news of the increase—a savage tax on the sick—was sneaked out while the House was uniting on Ireland? Does it not prove that the Tories are the party of high tax and low cunning?

The Prime Minister

When the hon. Gentleman stretches his arguments to such a length, I am tempted to remind him that it was a Labour Government who first introduced prescription charges and a Labour Government who reintroduced prescription charges after they had been abolished and that only one half of the people who get free prescriptions today enjoyed them under a Labour Government. Perhaps the next time that the hon. Gentleman talks about prescription charges, he will make those points clear as well.