PRIME MINISTER
Engagements
Q1. Mr. Greville Janner
asked the Prime Minister if she will list her official engagements for Tuesday 25 January.
The Prime Minister (Mrs. Margaret Thatcher)
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 this evening.
Mr. Janner
In view of the growing financial crisis, as evidenced by the latest unplanned fall in the value of the pound against the dollar, and as the situation is likely to worsen during 1983, with increasing unemployment, can the Prime Minister confirm that she is now considering calling an early general election?
The Prime Minister
No, Sir.
Mr. Neubert
Has my right hon. Friend had a chance to study the excellent report by the Commissioner of Police of the Metropolis on his proposed measures to combat the level of crime in London, which reveals, among other factors, that the number of demonstrations requiring the attendance of 100 police officers or more has in recent years risen from an average of one a week to one a day?
Mr. Cryer
That is because we have a Tory Government.
Mr. Neubert
Is it not clear that people such as the Leader of the Opposition, who has endorsed the candidature of Peter Tatchell, and the CND, will encourage the taking of politics on to the streets and will do no good to law and order in London, or to themselves?
The Prime Minister
I agree with my hon. Friend and I am glad that the proposals of the Metropolitan Police were received so well yesterday. I believe that the Metropolitan Police are doing an excellent job.
Mr. Roy Jenkins
On exchange rate policy, is the Prime Minister still adamant for inactivity?
The Prime Minister
At the moment exchange markets are very active because of uncertainty about the price of oil. Naturally we are affected as an oil currency. There is very little that Government can do at a time like this to stop the uncertainty in the markets or the fluctuations that that causes.
Sir William Clark
Does my right hon. Friend agree that irresponsible speeches by Opposition Members, especially the shadow Chancellor of the Exchequer, do no good at all in maintaining confidence in sterling? Would it not be a good idea if the Opposition sometimes tried to defend Britain rather than their own political ambitions?
The Prime Minister
I agree with my hon. Friend that the underlying financial position of sterling is strong. If we hold to that, it will tell in the end.
Mr. Foot
I understand that the right hon. Lady does not wish to make a statement on exchange rate policy, but [column 783]will she at least give us a guarantee that the Chancellor of the Exchequer will not attempt to deal with it by the foolish methods that he was using a couple of weeks ago?
The Prime Minister
My right hon. and learned Friend Sir Geoffrey Howethe Chancellor of the Exchequer indicated the other day in his speech that he thought there was no good reason either for the exchange rate to fall or for interest rates to rise.
Mr. Ian Lloyd
On my right hon. Friend's way to the House this afternoon did she see posters announcing that the pound had fallen into a black hole? She will be aware that over the weekend OPEC seems to have fallen into something similar. She will have observed that about $45 out of every $64 received from the production of a barrel of crude is entirely attributable to the taxation imposed by Governments. When the producer Governments begin to reduce their tax take, as they undoubtedly will, to meet the market situation, will she use all her great authority to ensure that consumer Governments, including our own, do not increase their take?
The Prime Minister
I believe that my hon. Friend is broaching matters that are more likely to be considered in about March this year. I believe, in general, that a fall in the price of oil, although the speed of change causes difficulty, is beneficial to the world economy in general.
Q2. Mr. Strang
asked the Prime Minister if she will list her official engagements for Tuesday 25 January.
The Prime Minister
I refer the hon. Gentleman to the reply that I gave some moments ago.
Mr. Strang
Turning to the important question of the American cruise missiles, will the Prime Minister give the House and the country a straight “Yes” or “No” answer to this question? Will the British Government have the right to veto a decision by the American President to fire the British-based cruise missiles?
The Prime Minister
The position is exactly the same as it has been for the past 30 years.
Mr. Canavan
“Yes” or “No” .
The Prime Minister
The use of United States bases in the United Kingdom in an emergency would be a matter for joint decision by Her Majesty's Government and the United States Government in the light of circumstances prevailing at the time. It is the same rule as existed under the Labour Government, and has existed for the past 30 years. I am aware that concern has been expressed about the effectiveness of the arrangements and I have satisfied myself that they are effective.
Mr. Fairbairn
Has my right hon. Friend had the opportunity of seeing the eye-witness reports of the atrocities committed by Russian officers in Padkhwab-E-Shana, Afghanistan, in murdering 105 Afghan patriots? Has she also seen the reports of torture by those officers in Kabul prison? Will my right hon. Friend bring these matters urgently to the attention of the appropriate authorities and will she remind the unilateralists inside and outside the House that those are the people to whom they would commit our civil liberties and our human rights?
The Prime Minister
I am grateful to my hon. and learned Friend for bringing this matter to our attention. I have recently had eye-witness accounts from some of the resistance fighters in Afghanistan of the terrible murders [column 784]that they have witnessed, some in their own village. We should always keep that in mind. We shall do everything possible to help the people of Afghanistan to rid themselves of the occupying force.
Mr. Maxton
Does the Prime Minister agree that it is an appalling indictment of her Government's attitude to the Third world and to aid to developing countries that the press interpreted the move of the right hon. Member for Aylesbury (Mr. Raison) from the Home Office to be Minister for Overseas Development as a demotion and a punishment?
The Prime Minister
I am not responsible for the attitudes of the press. I think that Timothy Raisonmy right hon. Friend is absolutely the right person for that job. I regard it as an extremely important job, which he will do supremely well, as he did his previous job.
Mr. Tapsell
Because of the often exaggerated view of sterling as a petro-currency and its bearing on our exchange rate, should not greater emphasis be given to the fact that the £7 billion of revenue from North Sea oil in the present fiscal year is less than 3 per cent. of our gross domestic product; that it provides only 6¼ per cent. of the Government's total revenues and that, contrary to the Treasury forecast in the autumn statement of a deficit, it now seems likely that there will be a surplus on our balance of payments in 1983–84 of £1½ billion?
The Prime Minister
I am grateful to my hon. Friend, particularly for putting the oil revenues into perspective, and also the percentage of the GDP. I had the same figures, which I was hoping to get out. My hon. Friend has done my job for me.
Mr. Ron Lewis
As it has been widely reported that the Prime Minister never uses British Rail, and arising out of the “serpent” or Serpell report, will she give an undertaking that there will be no Beeching-style cuts for as long as she is Prime Minister?
The Prime Minister
I give an undertaking that the report will be studied fully and carefully and premature conclusions will not be reached.
Mr. Bill Walker
Does my right hon. Friend agree that freedom, democracy and the rule of law have never been cheap and that one of the things we enjoy in the House is the right to table questions to Ministers? The hon. Member for West Lothian (Mr. Dalyell) has placed more than 300 questions to Ministers on Falklands matters at a cost to the public purse of more than £12,000. [Hon. Members: “Quite right” .] Is she aware that this could not happen in Argentina or Russia?
The Prime Minister
I propose to stand up for those rights, but I sometimes wish that they could be less prolifically used by certain people.
Mr. Dalyell
Is it not true that any cost concerning questions that I have placed on the Order Paper relates less to policy issues or to obtaining easily available facts than to the great cost of many Ministers and officials getting together to try to synchronise their answers to hide the truth?
The Prime Minister
I am not sure that that question was addressed to me. If it was, the answer is “Nonsense” .
[column 785]Job Creation
Q3. Mr. Wigley
asked the Prime Minister what new proposals she has for reducing unemployment levels.
The Prime Minister
There are no new answers, as the hon. Gentleman well knows, only the right products and services at the right prices. The way to reduce unemployment is for British firms to win markets and create jobs, and some are doing so. Last week, for instance, I visited a small firm that started only three years ago and now employs almost 200 people, made a £1 million profit last year, and is a market leader. The best way to help the unemployed is to keep down wage settlements, keep down inflation, and let industry be profitable and competitive.
In the meantime, we have allocated nearly £1½ billion to special employment and training measures this financial year and about £2 billion next year.
Mr. Wigley
Does the Prime Minister accept that in every community in these islands there is work that needs to be done, houses that need to be built, roads that need to be improved, home helps needed for the elderly and clinics for the disabled? Does she not realise also that there are people who are capable of doing this work who want to do it? In these circumstances, is it not crazy to pay £15 billion to keep people idle rather than pay them to do this work?
The Prime Minister
There is always work to be done. The pay for that work ultimately has to be found from profitable industry and commerce. If we put too heavy a burden on them they will no longer find themselves competitive, and instead of supplying wealth may well become consumers of it by way of subsidies. That is the dilemma. With regard to certain work in local authorities, that is exactly why we have programmes such as the community enterprise programme. That is why the £150 million was announced by my right hon. and learned Friend Sir Geoffrey Howethe Chancellor of the Exchequer in the last Budget—to help ensure that such work is done and that people can take the opportunity to do it.
Mr. Marlow
Does my right hon. Friend agree that one way, perhaps a small way, of reducing the numbers of unemployed would be to improve yet further our relationships with the Arab world? With that in mind, does she know yet when the delegation from the Arab League is coming to the United Kingdom and who will be in it?
The Prime Minister
No, not yet, Sir. We are continuing discussions through King Hassan of Morocco. [column 786]
We are working hard to find a solution. I hope that soon we will be able to receive a delegation from the Arab League.
Mr. Stoddart
Did the Prime Minister read in this morning's Hansard the figures given to the House by her Minister for Trade, which show that, in non-oil goods, our exports were £2 billion in deficit and, with the EC, nearly £5 billion in deficit? Does that not show that, under this Government, British manufacturing industry is being destroyed underneath our feet, and that North Sea oil, under her Administration, is proving a curse rather than a boon?
The Prime Minister
Economies do change, and the amount produced by manufacturing industry changes. The numbers employed in certain industries change as new technology comes in and new products are produced. We have problems, as in the world over, in steel, engineering and shipbuilding. I find it a mystery that the hon. Gentleman should cut out things such as oil and gas products, which are a significant part of our economy
United Empire Loyalists
(Bicentenary)
Q4. Sir John Biggs-Davison
asked the Prime Minister if she will consult the Prime Minister of Canada about the possibility of a joint celebration in the United Kingdom and Canada of the bicentenary of the United Empire Loyalists.
The Prime Minister
This is an important occasion for the United Empire Loyalists and I wish them well. I am sure, however, that they will be able to organise a really special celebration of their bicentenary without such an initiative on my part, especially when they have the support and help of my hon. Friend.
Sir John Biggs-Davison
Recalling our postal celebration of the bicentennial of the American revolution, should we not commemorate with a special issue——
Mr. William Hamilton
Reading.
Sir John Biggs-Davison
It is far quicker that way. Should we not commemorate with a special issue the bicentenary of those North Americans who gave up everything and moved to Canada because of their loyalty to the Crown? Will my right hon. Friend speak to the Post Office and to Mr. Trudeau?
The Prime Minister
Under the Post Office Act, the Post Office is responsible for choosing subjects for celebration stamps. While the chairman recognises what my hon. Friend has stated, he regrets that the programme for 1983 and 1984 is already full.