EDGE HILL
Q1. Mr. Alton
asked the Prime Minister if she has any plans to visit Edge Hill.
The Prime Minister (Mrs. Margaret Thatcher)
I have no plans to do so.
Mr. Alton
How does the Prime Minister reconcile the proposed cuts in public expenditure, which are jeopardising the future of nursery schools in the Edge Hill area, and which are resulting in the withdrawal of home helps and ancillary help for children, with the proposal that the Merseyside county council should go ahead with a £40 million inner ring road scheme which will result in the loss of 1,000 jobs? Is the Prime Minister prepared to intervene to try to get the inner ring road scheme scrapped?
The Prime Minister
I have looked into the question of the inner ring road because a number of the hon. Member's constituents feel very strongly about it. They felt particularly strongly that they could not have a public inquiry because of the Liverpool Corporation Act 1966 and its successor, which is now being considered in Committee. But this is really a matter for the Merseyside county council, and there are some who hold that scheme will provide more employment, release a lot of blighted land and give a badly needed boost to the area. These people believe that the constituency and the Liverpool council are forward looking and are preparing for the future.
PRIME MINISTER
(ENGAGEMENTS)
Q2. Mr. Cadbury
asked the Prime Minister if she will list her official engagements for 5 July.
The Prime Minister
This morning I presided at a meeting of the Cabinet. In [column 1550]addition to duties in this House, I shall have further meetings with ministerial colleagues and others.
Mr. Cadbury
My right hon. Friend will be well aware of the need to encourage the use of secret ballots to improve industrial relations in British industry. Will she consider, during her crowded schedule today, bringing forward as urgently as possible some proposals to make funds available to pay for secret ballots?
The Prime Minister
As my hon. Friend knows, in our manifesto we undertook to bring in a Bill to provide funds for postal ballots because we believe that trade union members should be able to register their votes secretly, just as we can for parliamentary candidates. We hope that that Bill will come forward before the end of the year.
Mr. Stoddart
In spite of her busy schedule today, will the Prime Minister, immediately following Question Time, have a conference with the Home Secretary to discuss the case of Mr. Chris Kelzani, who has been held prisoner at Horfield goal since 13 June because the Home Office is unable to execute a deportation order as this man has no right of abode elsewhere? Is she aware that that order was signed on the basis of admittedly incorrect information supplied to the Ministers concerned?
The Prime Minister
I shall have to say “No” to the hon. Member for the specific reason that William Whitelawthe Home Secretary is at present in the Isle of Man on an official visit. Of course, I shall draw the attention of my colleagues in the Home Office to this case and I shall ask them to look into it immediately.
Mr. Alexander
Will my right hon. Friend take time off today to talk to the Building Societies Association and make the point that, while she is not willing to interfere in its day-to-day affairs, she will nevertheless regret it if it finds a need to increase mortgage interest rates?
The Prime Minister
There was a regular meeting of the joint advisory committee involving the Building Societies Association today. I cannot accede to my hon. Friend's request, but I must point out that my views on mortgage rates are very well known and I [column 1551]hope that the building societies will think long and hard before they make any suggestion to raise the present mortgage rate.
Mr. Hooley
Since the Prime Minister has proclaimed that she will stand up for British interests in the Common Market, will she explain why she has capitulated on the question of the interest relief grants for North Sea oil equipment and why she is handing over control of the steel industry to the Community?
The Prime Minister
I do not think that we have made any changes at all in the governing treaties of the Community which the previous Government recommended this country to join.
Q3. Mr. Goodlad
asked the Prime Minister if she will list her official engagements for 5 July.
The Prime Minister
I refer my hon. Friend to the reply which I have just given.
Mr. Goodlad
Will my right hon. Friend take time today to read the press reports of the decisions taken yesterday by the Labour Party NEC? Does she believe that the decision that the Leader of the Opposition should not nominate life peers to another place is likely to strengthen or weaken parliamentary democracy? Does she regard this as a sinister step on the road to a unicameral legislature?
The Prime Minister
I am responsible for many things, but not for the activities of the Labour Party. It always appears to me that, although some of them are trying to leave the other place, others are trying to get into it. That might help to keep it in existence.
Mr. Flannery
In the midst of her many engagements, will the Prime Minister take time to study the deliberations of the National Union of Mineworkers many of whose members are in the Channel Islands this week? Will she examine their demands for an increase in pay, and consult her right hon. Friend the Member for Sidcup (Mr. Heath), the former Prime Minister, and learn the lesson which he failed to learn?
The Prime Minister
The NUM will negotiate with the National Coal Board and not with me.
[column 1552]Mr. Budgen
Will my right hon. Friend take the opportunity today to explain that she and the Government have no lawful authority to interfere with the rate of interest which is either charged or received by the building societies?
The Prime Minister
My hon. Friend, as usual, is absolutely correct.
Mr. Robert Sheldon
Will the Prime Minister look into the subject of incentives, in which she has a great interest? Will she examine one other aspect of the matter and consider her exchange rate policy which has resulted in imports of manufactured goods coming down in price by around 10 per cent. since she took over? The greatest incentive we now have, as a result of this Government, is the incentive to import finished manufactures at a lower price than was available before she took over, to the great disadvantage of British industry. Will she reconsider her policy?
The Prime Minister
The right hon. Gentleman raises an important point. The other aspect of the matter is that this state of affairs keeps down the rate of inflation in this country. He is making a very good case for the relaxation of exchange controls.
Q4. Mr. Brotherton
asked the Prime Minister if she will list her official engagements for Thursday 5 July.
The Prime Minister
I refer my hon. Friend to the reply which I gave earlier.
Mr. Brotherton
Bearing in mind the vital importance of reducing the size of the public sector, will my right hon. Friend consider the appointment of a Minister for denationalisation?
The Prime Minister
As my hon. Friend knows, I do not like adding extra Ministries to those we already have. I believe that we already have a very good Minister in my right hon. Friend Sir Keith Josephthe Secretary of State for Industry, who could and will carry out that policy very ably.
Mr. Marks
Will the right hon. Lady take time today to read some of her past speeches, particularly the one in which she gave an unshakeable pledge that the next Conservative Government would transfer teachers' pay from rates to taxation, abolish domestic rates and maintain [column 1553]the mortgage rate at 9½ per cent.? What are her views on those matters now?
The Prime Minister
With respect to the hon. Gentleman, I think that it was on that manifesto that the Labour Government got in.
Mr. Wigley
On the subject of exchange rates, is the right hon. Lady aware that the implications are not only cheaper imports, but export difficulties for manufacturing concerns in the United Kingdom? Is she further aware that only last week a factory in my constituency manufacturing typewriters announced that it was closing down for the very reason of the rate of exchange of the pound against the dollar?
The Prime Minister
I am aware that the exchange rate is causing some difficulty for some exporters, but it is also keeping down the rate of increase of inflation in this country. That, too, is important. Once again, the hon. Gentleman is making a very good case for the relaxation of exchange controls which I trust he supported in the Budget Statement.
Mr. James Callaghan
rose——
Mr. Rost
Welcome back.
Mr. Callaghan
I understand the cry “Welcome back” . That is what the country is saying just at this moment.
The Prime Minister has said that it is her policy to reduce the minimum lending rate, but that is in conflict with the building societies' lack of liquidity. Will she undertake to examine the prospect of helping to keep down mortgage interest rates by temporarily advancing to the building societies a sum of public money——
Mr. Budgen
No.
Mr. Callaghan
——to maintain their liquidity? Would that not achieve both her objects? It would anticipate the lowering of MLR, and at the same time prevent the building societies from putting up their rates, at a small cost to the Government.
The Prime Minister
I understand the scheme which the right hon. Gentleman is proposing. It was put into operation by his right hon. Friend the Member for Leeds, East (Mr. Healey) in 1974. Equally, the right hon. Gentleman knows [column 1554]that the building societies have very substantial reserves.
Mr. Callaghan
But if there is a choice between not using those reserves and mortgage interest rates rising, will the right hon. Lady not allow her prejudices to stand in the way but advance this money at very little cost? At the moment, does she not realise that the Government are looking like a lot of Charlies in relation to their monetary policy?
The Prime Minister
The Government intend to run a firmly-controlled monetary policy. That was Denis Healeythe former Chancellor of the Exchequer's intention, but it slipped a bit when we came up to the election. Because it slipped a bit, we now face monetary troubles. I emphasise that the building societies have substantial reserves. I think that it will be for them to consider using some of those first.
Mr. Charles Morrison
May I follow up the supplementary question put by my hon. Friend the Member for Northwich (Mr. Goodlad)? Will my right hon. Friend, either today or at the earliest possible opportunity, further consider the question of the future of the House of Lords? If she were to do that, would it not have the double advantage of living up to the Conservative Party manifesto, which stated that it wished to strengthen the Second Chamber, and help the Leader of the Opposition in his battle against his own Left wing?
The Prime Minister
As my hon. Friend knows, we believe in a strong Second Chamber, regardless of which side of the House happens to be in government. We should have a powerful revising Second Chamber. Equally, there are many people who wish to reform the House of Lords. Alas, it is not so easy to find agreement on the way to reform it. That is the problem.
Q5. Mr. Dubs
asked the Prime Minister if she will list her official engagements for 5 July.
The Prime Minister
I refer the hon. Member to the reply I have already given.
Mr. Dubs
Will the right hon. Lady find time today to remind herself of the good work undertaken by the law centres all over the country on behalf of their [column 1555]local communities? Will she use her influence with her beloved Wandsworth council to persuade it not to cut two of the law centres in the borough?
The Prime Minister
How the Wandsworth council disburses its income is a matter for the council. I feel certain that the hon. Gentleman will put his point to the finance committee.
Mr. Farr
Will my right hon. Friend have time to fit into her itinerary today a visit from the National Indian Brotherhood from Canada? About 300 delegates are visiting this country. My right hon. Friend might care to know that they wish to give her a message and that they are bearing gifts.
The Prime Minister
I am sorry to have to refuse my hon. Friend's request. If they are bearing gifts, it is important that I do. Otherwise it might be misunderstood.