HC Deb 09 July 1996 vol 281 cc170-3
Q1. Mr. Donald Anderson

To ask the Prime Minister if he will list his official engagements for Tuesday 9 July. [34927]

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. Anderson

Does the Prime Minister agree that one part of the historic greatness of President Mandela is that he is prepared to forgive and forget the collusion of the Tory Government at the time of apartheid because he knew that, in his struggle against an evil system, he had the overwhelming support of the British people?

The Prime Minister

President Mandela is a very welcome guest to the United Kingdom as President of the Republic of South Africa and I look forward to my talks with him tomorrow. I enjoyed my visit to South Africa and our discussions then, and I have no doubt that the President will be given a warm and friendly reception in this country by everyone he meets.

Mr. Bellingham

Is the Prime Minister aware that the headmaster of the London Oratory school in Fulham—a school well known for its ability to attract the brightest pupils from all over London—recently said that, if Labour won the election, he would consider taking his school private? What advice does the Prime Minister have for parents of children at the school, apart from the obvious advice to vote Conservative?

The Prime Minister

All parents at every school will be concerned about the quality of education in their school, and I am sure that that also applies to the London Oratory.

Mr. Blair

Given the Chancellor's admission today that there will be an extra £12 billion of borrowing this year and next—double last year's forecast—what is the Prime Minister's explanation for the appalling state of the public's finances?

The Prime Minister

I find the right hon. Gentleman's question astonishing. If he had read the economic forecasts this morning, he would have read of better economic prospects in this country than in any country across the European Union, and better economic prospects than we have known for many years. Those prospects could not have been obtained other than by following the policies that we have followed in recent years.

Mr. Blair

When the Prime Minister reads out his list of statistics, perhaps he will also confirm that Britain has a higher inflation rate than many of its main competitors—it has higher interest rates than France, Germany, the United States or Japan—and that it is the only country anywhere in the European Union, apart from Spain, to be running a trade deficit, despite the 20 per cent. devaluation of the pound. Will the Prime Minister confirm that he promised that he would cut public sector debt, but that it has doubled under his stewardship of the public finances, and that we now spend £25 billion a year servicing that debt—more than on law and order and more than on defence?

The Prime Minister

I think that everyone in the House will wonder why, on every conceivable occasion, the right hon. Gentleman wants to run down the country's performance. I shall tell him what is happening: we have the lowest levels of inflation for 50 years—an achievement never remotely matched by any Labour Government—the lowest mortgage rates for 30 years, four years of falling unemployment and growing employment, and the lowest basic rate of tax for 50 years. Furthermore, the debt ratio is lower than it was in 1979—unlike in France, Germany and every other G7 country. That is the impact of the Government's policies since 1979, and it is unmatched by anything that the Labour party ever remotely achieved in office.

Mr. Blair

Madam Speaker, he does not deny a single fact that was put to him: that his forecasts have been wrong or that job creation and employment growth over the past 10 years have been lower in Britain than in any of the 10 main world economies. No Government—Labour or Conservative—have ever had £120 billion in North sea oil and squandered it or sold off every asset that the public owned and blown the money. Is it not true that, having promised that he would cut tax, he raised it; and having promised that he would cut borrowing, he raised it? Is not the lesson that, just as the Tories are untrustworthy and incompetent over tax, they are untrustworthy and incompetent over the state of the nation's finances?

The Prime Minister

I note—as will people here and abroad—the way in which, on every conceivable occasion, the Leader of the Opposition tries to sell this country short. I remind him that the economy is in the fifth successive year of sustainable growth. Since the last election, we have enjoyed the strongest recovery of any major European country.

As for forecasts, the right hon. Gentleman sits next to the shadow Chancellor: the man who cannot say whether interest rates are too high or too low, or whether inflation is too high or too low, and who famously predicted in 1992 that unemployment would go up month after month after month. Since that time, unemployment has fallen month after month after month. The right hon. Gentleman should stop living in a world of his own and see that this country is leading Europe economically and regaining its place among the strong economic and industrial nations of the world.

Sir Irvine Patnick

As my right hon. Friend will be aware, in Sheffield yesterday a Yorkshire and Humberside regional assembly was set up. Does my right hon. Friend agree that the role of councils is to look after local interests and not to set up offices in Brussels or create regional assemblies?

The Prime Minister

I see no justification for regional assemblies and more bureaucracy. That may be the policy of the Labour party, but it is neither the wish of the electorate nor the policy of the Government.

Mr. Ashdown

The day after it appears that ethnic cleansing has come once again to Northern Ireland, will the Prime Minister emphasise to all he sees that those who wish to widen conflict only serve the purposes of the IRA and help those who wish to revert to violence rather than peace?

The Prime Minister

I hope that the whole House will join me in condemning the scenes of violence that we have observed across Northern Ireland in the past couple of days. They are indefensible. The search for peace in Northern Ireland will not be assisted by such behaviour, but it could well be put back. In my judgment, that is emphatically not the wish of the people of Northern Ireland. At the moment, we need dialogue to ensure that we can move forward from the present situation, which is doing nothing but causing misery, hardship and damage. We need that dialogue speedily so that a resolution can be reached without delay.

Dame Elaine Kellett-Bowman

Will my right hon. Friend join me in congratulating the police, the Inland Revenue, Customs and Excise and the Benefits Agency in Lancaster on a combined operation which has netted tens of thousands, if not millions, of pounds in fraudulent benefit claims? Those people are now saving the taxpayer huge sums that can be devoted to proper causes.

The Prime Minister

I willingly congratulate those involved in that development. Perhaps I might add the name of my right hon. Friend the Secretary of State for Social Security, who has put in place the most comprehensive anti-fraud devices in the social security system that we have had at any stage.

Q2. Mr. McKelvey

To ask the Prime Minister if he will list his official engagements for Tuesday 9 July. [34928]

The Prime Minister

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

Mr. McKelvey

Can the Prime Minister explain to the House why this country is up to its neck in debt? The national debt is £320 billion and the public sector borrowing requirement is £30 million, yet the same team can turn the Tory party debt of £17 million two years ago into a £20 million profit this year. Where did they get the money, and will they publish their accounts?

The Prime Minister

The hon. Gentleman talks about the same team. Since I became Prime Minister, the national debt has averaged 44 per cent. of gross domestic product. Under the previous Labour Government, it was 62 per cent. of GDP.