PRIME MINISTER
Engagements
Q1. Mr. Callaghan
To ask the Prime Minister if she will list her official engagements for Tuesday 6 March.
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 today. This evening I hope to have an audience of Her Majesty the Queen.
Mr. Callaghan
Is the Prime Minister aware that a recent report by the building societies and the banks said that more than 500,000 householders in Britain are more than two months in arrears with their mortgage repayments? It also said that, last year, 13,500 householders had their house taken from them because they could not pay high interest rates of up to 15.4 per cent. As they will have the added misery and burden of the poll tax round their necks from next month, may I ask the Prime Minister to say what financial support she is prepared to give to householders, or does she intend to tell them a thing or two? Or will she do the decent thing, copy the Secretary of State for Wales and go?
The Prime Minister
Perhaps the hon. Gentleman will recall that we have had questions before about the report. Sad though it is that some people have difficulties with mortgages, the repossession rate is less than one third of 1 per cent. of those who are paying mortgages, and over 99 per cent. of those with mortgages are well able to meet their repayments. The number of people who who own their own homes has gone up from 11 million under Labour to 15 million under the Conservatives.
Mr. Speaker
Sir Anthony Meyer—[Hon. Members: “Hear, hear!” ] Order. This sort of thing takes up a great deal of time.
Sir Anthony Meyer
Is the Prime Minister aware that many hundreds of my constituents, having lost the treasured possessions of a lifetime, now find that they are not, as they thought, covered by insurance because storm damage excludes flood? In those circumstances, they are uniquely dependent on the mayor's disaster fund. Is she aware of the feeling that the Government's contribution to that fund, although welcome, compares unfavourably with what they, rightly, give to overseas earthquake victims?
The Prime Minister
We tried to make the contribution to the fund proportionate to what we understood was the damage and in accordance with the usual rules applying to other disasters in the country. If that is not so, of course we shall look at the matter again.
Mr. Kinnock
Will the right hon. Lady take the opportunity of this Question Time firmly to reject the calls coming from those in the City who want interest rates to be raised yet again?
The Prime Minister
As the right hon. Gentleman is aware, interest rates are at the level which it is deemed necessary to press down on inflation, and they will stay at whatever that level is.
Mr. Kinnock
Many millions of people will be very disappointed by the Prime Minister's refusal to be firm in this matter. Is not it obvious that her high interest rate [column 724]policies are hitting home buyers and businesses, but are certainly not controlling credit? Is not it obvious that the policies are hurting, but definitely not working? Will the Prime Minister change those policies before she pushes the British economy further into stagnation and inflation?
The Prime Minister
I believe that the policies are working and that activity is being reduced. The right hon. Gentleman asks me to make further comments on interest rates. He knows that that could only help speculators and it is a totally irresponsible question on his part.
Mr. Kinnock
No Prime Minister has been more of a speculators' friend than the right hon. Lady. At the same time as she is the friend of the speculator, she is the enemy of business and of the home buyer.
The Prime Minister
Business has a higher rate of output than ever before in history, a higher number of people employed than ever before in history and a higher rate of investment than ever before in history. The right hon. Gentleman is trying to upset that by being the speculators' friend.
Mr. Atkinson
Will my right hon. Friend confirm the Government's continuing concern for the plight of the homeless unemployed, especially those suffering from alcoholism and schizophrenia, and those under the age of 25? Will she consider introducing new responsibilities for local authorities to provide adequate sheltered overnight housing, with counselling support, to break that cycle of deprivation?
The Prime Minister
I agree with my hon. Friend that some people who suffer from those illnesses and are homeless represent a particular problem. However, it is not enough to provide housing for them unless they also receive some counselling, and some will require community care for their problems. As my hon. Friend knows, we have a very considerable programme for increasing housing for the homeless, and for beds in the city of London and elsewhere. I agree with my hon. Friend that those people need counselling, too, and we have that very much in mind.
Q2. Mr. Michael J. Martin
To ask the Prime Minister if she will list her official engagements for Tuesday 6 March.
The Prime Minister
I refer the hon. Gentleman to the reply that I gave some moments ago.
Mr. Martin
In Scotland, local government officials are finding it difficult to collect the poll tax effectively. The Prime Minister will know that this morning BBC radio stated that the people of England will be 30 per cent. worse off than they were last year with the old rating system. The Prime Minister's hon. Friends are deserting her. Why does not she give up this irrational obsession to implement the poll tax?
The Prime Minister
I was very glad that the “Today” programme this morning virtually confirmed the figure that I gave the House on 20 February, when I pointed out that if local authorities were going to spend up to about £3 billion over what the Government considered reasonable, that would be equivalent to—[Hon. Members: “Reading.” ] I am quoting from what I said. That would be equivalent to a 35 per cent. increase in domestic rates. I am delighted that, for once, the BBC and I are in total [column 725]agreement. That increase comes, of course, from high-spending authorities, which are spending well above what they should.
I am pleased to note—the hon. Gentleman did not mention this—that the combined regional and district community charge for Glasgow city district has gone up by only 10.5 per cent., which is high enough, but very much less than in some other Labour authorities.
Mr. Hayes
Does my right hon. Friend agree that it is rank hypocrisy for Left-wing Harlow council to try to pin the blame for a £425 community charge on the Government, when it is the highest-spending local authority in the country? Does she accept——
Hon. Members
Bye, bye!
Mr. Speaker
Order.
Mr. Hayes
Does my right hon. Friend accept that although there will be some stormy weather over the next few weeks, eventually the public will realise that the community charge is there to protect them against high-spending authorities—[Interruption.]
Mr. Speaker
Order. It is very disorderly to have this sort of noise.
The Prime Minister
The community charge will ensure that local councils are accountable to their local electors. Those that set high community charges are doing so because their expenditure is profligate and because they have little consideration for their electors' pockets. The lesson will be learnt that Labour authorities are the high spenders and that Conservative authorities look after their electors' money.
Q3. Mr. Cohen
To ask the Prime Minister if she will list her official engagements for Tuesday 6 March.
The Prime Minister
I refer the hon. Gentleman to the reply that I gave some moments ago.
Mr. Cohen
The Government admit that the high interest rate and mortgage rate policy is a deliberate attempt to reduce people's other spending, but it has led to a vast increase in repossessions. Will the Prime Minister act to stop the courts repossessing in cases where high mortgage rate rises are the primary cause of debt, or is repossession an integral part of the Government's economic policy?
The Prime Minister
The hon. Gentleman should recall the figures. Repossessions are less than one third of 1 per cent., and in the past they have been higher. That does not help those in difficulty, but it does not alter the fact that 99 per cent. of those with mortgages can meet their repayments and continue to invest in home ownership. Interest rates benefit people who place their deposits with building societies and those who are trying to build up a high deposit to purchase a home when house prices are falling.
Mr. Sayeed
Is my right hon. Friend aware that in Avon, due to a mixture of fiscal incompetence and overspending, the Labour and Liberal parties have set a budget that is likely to result in a community charge of more than £500 per person in Bristol, despite the fact that [column 726]they will receive £23 from the safety net? Will my right hon. Friend contrast that with the position in Westminster where, despite being an inner-city area and paying £75 per person towards the safety net, the Conservative administration has set a charge of only £195?
The Prime Minister
I agree with my hon. Friend. According to the Association of County Councils, Avon is one of the top 10 county council overspenders. He rightly contrasted the position in Avon with that of Westminster where, with a good Tory council, there is a low community charge. We are very grateful for its careful stewardship.
Q4. Mr. Malcolm Bruce
To ask the Prime Minister if she will list her official engagements for Tuesday 6 March.
The Prime Minister
I refer the hon. Gentleman to the reply that I gave some moments ago.
Mr. Bruce
Does the Prime Minister agree that it is a little strange that the Tories who are now squealing about the poll tax did nothing when the people of Scotland complained? Does she accept that the tax is unfair and unworkable and that a roof tax would be no fairer and no more workable? If income tax is the fairest way to finance central Government, would not it also be the fairest way to finance local government?
The Prime Minister
Perhaps the hon. Gentleman will recall what happened in Scotland when domestic rates were revalued after seven years. There was an absolute outcry, far louder than anything heard about the community charge. The community charge is now working in Scotland. The hon. Gentleman may also recall that under the old rating system throughout the United Kingdom, some 17 million people did not pay rates, leaving 12 million people to pay them in full. That was an unfair system, and it is being replaced by a much fairer one.
Q5. Mr. Amess
To ask the Prime Minister if she will list her official engagements for Tuesday 6 March.
The Prime Minister
I refer my hon. Friend to the reply that I gave some moments ago.
Mr. Amess
Has my right hon. Friend noticed the contrast between the community charge of £148 set by Conservative-controlled Wandsworth council and the £478 set by Labour-controlled Basildon council? Does she agree that the high charge in Basildon is a result of subsidising the theatre by £1.6 million, building a huge civic centre without a council chamber and sending everyone a Valentine card at a cost of £46,000? Will my right hon. Friend urge the Secretary of State for the Environment to cap the charge in Basildon?
The Prime Minister
I agree with my hon. Friend that community charge payers would rather have had a lower community charge than some of those extravagant things. The contrast with Wandsworth will be even more effective when next-door Lambeth announces its community charge, which is rumoured to be very high. We cannot say which councils will be charge-capped. That is a matter for my right hon. Friend Chris Pattenthe Secretary of State. He will make his decision when the time comes, but where there has been excessive spending he will not hesitate to use his powers.