Speeches, etc.

Margaret Thatcher

Speech to Association of Conservative Peers

Document type: Speeches, interviews, etc.
Venue: Moses Room, House of Commons
Source: Thatcher Archive: John Whittingdale notes
Editorial comments: 1630-1730. MT’s Political Secretary, John Whittingdale, took notes as she spoke. She took questions after the speech, also noted in fragmentary form. BBC Radio News Report 2200 17 July has a brief account of the speech: "the Prime Minister ... told peers tonight that inflation and interest rates would only be brought down by tight monetary policy. Without that, she said, the government risked losing everything to the "shibboleths of socialism". Ordinarily no notes were kept of MT’s speeches to Conservative Peers and where press briefing did not take place the speeches have been excluded from the list of statements.
Importance ranking: Major
Word count: 1336
Themes: Agriculture, Arts & entertainment, Parliament, Defence (general), Industry, General Elections, Monetary policy, Energy, Environment, Trade, European Union (general), Economic, monetary & political union, European Union Single Market, Foreign policy - theory and process, Family, Foreign policy (Central & Eastern Europe), Foreign policy (International organizations), Foreign policy (USSR & successor states), Labour Party & socialism, Local government, Local government finance, Community charge (“poll tax”)
Handwritten minutes.

PM

1) Thank you, Lord DenhamChief Whip & Lord BelsteadLord Privy Seal—another quite heavy year 27 Govt. Bills & 95%; of what Govt. wanted; other 5%; v. interesting fulfilling constitutional duties.

—interesting prog.: number had scientific basis (Warnock, Food Safety, Control of Pollution) also quality of life—environment, broadcasting, social security

What happens in foreign affairs determines our relations, trade, etc., but what happens here determines election—education last year, NHS this: give people choice in public sector too.

Next year: implementing legislation—accused of being v. material, not at all—remember John Wesley Will win election on basic economy & quality of life so public expenditure down, mortgages down

Next year's legislation—not as heavy but planning for full year: do not know when election will be Election will be as important as '79—our reforms are not yet entrenched; could lose it all to the silver-tongued shibboleths of Socialism. Will show whether or not we are truly finished with Socialism.

For you important as may be survival of H.o.L. [end p1]

Will have Criminal Justice Bill—parole, sexual offences, one new remand home privatised to start with. Town & Country Planning Bill—v. heavy postbag on planning. > 100%; compensation for property—main planning to districts although indicative role for counties Several transport bills—private finance, road safety & Severn Crossing, and if time: Trust Ports.

Also anxious about single parents & diminishing traditional families: only 1 in 3 get maintenance. Better provision to see fathers pay maintenance—new agency. White Paper in October.

Future of Quality of life still peace & defence—4 Summits: 2 EC, NATO & G7. Cannot remember time when foreign affairs moved as fast—lot to do with Gorbachev.

2 Dublin Summits: I was brought up in Science so tend to say ‘What do you mean?’ re political union so I said what we were not prepared to hand over powers of Parliament etc. We are far more accountable in this Parliament Really rather won on this point—political union only means making institutions work better. Going to IGC (not needed).

Not possible to have a common foreign policy—believe in cooperation.

At second summit, suddenly presented with proposition to lend $15 billion to Soviet Union: no papers, no where it is going or where it is coming from. Do not want dying embers of communism to survive—won on that too.

EMU: House of Commons not prepared to go to single currency. [end p2] Differences of view so proposed EMF using hard ecu. Europe extending Eastward—do not tie them up with bureaucracy

NATO Summit a great success. Keep a strong defence. Nuclear is strongest deterrent ever. No longer forward defence but defence in depth—also remember out of area duties: Afghanistan, Falklands, Armilla.

G7 in Houston—same argument about aid to USSR—called IMF in. Look to see where aid can be targetted. Protectionism vs. free trade. Agreed we all do rather a lot of protectionism & must get it down.

Because of success & staunchness, we are listened to—hope that will be taken into account as well as economy.

Lord Oxford

Effect of single European currency on man in street?

PM

No control over interest rates, people would move to more prosperous areas, places like Greece & Spain would demand massive subventions.

?

Position regarding ERM entry? business needs to know timetable and parameters to plan ahead.

PM

Madrid conditions. Quite a long way to go on internal market completion, financial services. Cannot go further. But too many looking at it as soft option. It is not—was not for Spain. Supplement not substitute. [end p3]

Lord ?

Gorbachev strengthened or weakened?

PM

Managed everything v. skilfully—enormous burden on his shoulders. Have not dispersed the powers through from Moscow to republics—not yet set division of powers and people fed up with waiting so taking the powers themselves. May be the way to do it. Cannot run economy of 80m [sic] from one centre. Do not have any idea of rule of law. We have given more constitutions to countries—told them to go to us, USA, Canada, Australia. Yeltsin, Popov all talk warmly of Milton Friedman. None would have happened without Gorbachev.

Lord Renton

Global warming. Environment bill did not go far enough, what ideas?

PM

Scientists not yet agreed as to causes. Need to take precautions—main one is efficiency; go to gas rather than coal; we are only responsible for 3%; so must act internationally. Look at car engines, price of petrol (low in USA). Look at nuclear energy. Look at other greenhouse gases, ocean circulations.

Lord Boyd-Carpenter

Curbing excesses of CAP and early reduction in financial costs & import restrictions.

PM

EC, USA, Canada & Japan all heavily subsidise agriculture. Costs £16 pw here to average family. In EC, heavily subsidised ones are v. small on the [end p4] continent. Have different method of subsidy. Report be de Zoo? [sic: de Zeeuw] —set up points system for different methods of protectionism & then all agree to reduce totals. Ironic it was followed by debate on developing countries—subsidies will ruin their agriculture.

Lord Montagu

Celebration of year 2000—preservation of towns, monuments, etc.

PM

Steady the buffs—every dept. will come in with great list of expenditure. Needs to be more subtle—clean up Britain. All cost of Houston Summit met by private sector—volunteers cleaned up. Needs to mobilise. Of course, looking at heritage, etc. But not gone further as Ministers just ask for money—v. unimaginative.

Lord Eccles

No difference on Common Market—a vision for young people.

PM

We started them on progress towards it. Got the difficult directives left—not us creating problems. Our record on implementation is v. good—unlike e.g. Italians. We have free cabotage. Road haulage. People who talk but do not practice it. Cultural barriers—we will not have full common market by 1992: procurement.

Lord Orr-Ewing

Talked of aid to Russia but Poland suffering [end p5] grievously. Give them priority.

PM

We do it through the Community. I raised it—gave them £250m worth of food. Also Humanitarian aid, etc. Cannot do as much as Germany. Remember giving big loan for tractor factory but they did not know how to make tractors.

Lady Gardiner

Known support for family. Attend UN Children Summit.

PM

Trying to arrange it so I can go for a day.

Lord ?

Effect of UBR on small businesses—leading to closures.

PM

In North, some will be paying less—mans for others it will go up. Always told to do more for North. But another factor: revaluation on rental value after 17 years led to colossal rises. Sometimes wish we had done same thing for houses—would have led to people grasping C Charge. But believe it will take longer than 5 years. Also looking at mixed hereditaments.