Mrs. Margaret Thatcher (Finchley)
I should like to make it quite clear that we on the Opposition Benches support the Harold WilsonPrime Minister in introducing this measure at the present time. As he said, it is a brief Bill and one with a limited objective. It is virtually a single-clause Bill, in which the Explanatory and Financial Memorandum is longer than the substantive provisions of the clauses. [column 1986]
The Bill's limited purpose is to vary the procedure by which we make full and proper provision for the expenses of a constitutional monarchy in the performance of its public duties. We are very fortunate in having the institution of a constitutional monarchy. It has brought this country a stability and sense of continuity that are lacking in some other countries. We are also fortunate, if I may say so without being presumptuous, in the Monarch who wears the crown and the family who help to discharge the heavy round of duties. As well as being founded on tradition, the monarchy now has a strong bond with the people, in that it has the admiration and affection of the people.
I also believe that we are fortunate to have in this country the person who is the Monarch of 11 other countries as well; although it is something of a general knowledge exercise to try to enumerate the 12 countries mentioned by the Prime Minister. Fortunately, his office was kind enough to let me have a list of them.
There have been changes in the way in which we make provision. It is no longer possible to provide for a whole reign, or even for a few years at a time. It is interesting to look back to the rate of inflation when we last made provision by Act, which was in 1972. Inflation then rose at about 8 per cent. in the year. For the last calendar year the rate was about 20 per cent., and we do not quite know what it will be over the whole of this year. Whereas we started out to make provision for a whole reign, and then graduated to making provision for a few years, it is no longer possible even to forecast the required expenditure for a few years ahead, as the Prime Minister said. That is why it is necessary to move to an annual statement.
I understand from the Prime Minister's statement on 12th February that the change to an annual Vote has the full agreement of the Royal Household. I also understand from the Bill that it is still possible to revert to the old procedure under which provision was made by Order. We can do this if we get inflation completely under control and go once again to a stable price level. To some extent, therefore, this Bill presents an alternative procedure which we can use while we have need to do so. If we can ever revert to making Orders, they [column 1987]will derive from agreement between the Treasury and the Royal Household and then be brought before the House in the usual way. It is extremely useful to have these two alternative methods at our disposal.
The Prime Minister mentioned some of the annuities referred to in Clause 1 and spoke of the contributions to expenses of certain members of the Royal Family not in receipt of annuities, saying that these will now be borne not by the Consolidated Fund but by the Queen. We should say how grateful we are that when these matters have come before the House and the Civil List has been revised we have always been met with maximum co-operation from the Royal Household. The Royal Household has always made a very positive contribution to try to reduce the expenses of carrying out the duties of the monarchy.
First, in 1972 I believe, the payment to the Privy Purse was forgone, and then last year there was the special contribution to which the Prime Minister referred. This year we have a separate and new measure under which the Queen herself will meet the cost of annuities to members of the Royal Family not covered by the Civil List. Those members of the Royal Family carry out quite heavy duties. They are welcomed by the people as a whole, and it is right that all their expenses should be reimbursed. We warmly welcome the gesture by the Queen that in future she will reimburse them herself, particularly at a time of inflation, when the size of the commitment cannot be quantified.
The Prime Minister also referred to the £6 pay limit and the fact that the Royal Household has always made maximum economies, in particular in reducing the numbers of staff employed to carry out the duties, although those duties have been increased. I understand that almost all members of the Royal Household have salary scales linked directly or indirectly to the Civil Service scales. It seems to follow that any increases must automatically be within the pay limits settled by the Prime Minister in the attack on inflation.
As the Prime Minister said, this is a very limited Bill, mainly a machinery or procedure Bill. I think it right that we should make good provision for the [column 1988]Monarch to carry out the duties of the monarchy in the best possible way. I hope that we shall do it expeditiously.