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Commons Chamber

Volume 929: debated on Wednesday 30 March 1977

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House Of Commons

Wednesday, 30th March 1977

The House met at half-past Two o'clock

Prayers

[Mr. SPEAKER in the Chair]

Oral Answers To Questions

Foreign And Commonwealth Affairs

Cambodia

1.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will raise in the Security Council, as a threat to the peace of South-East Asia, the current large-scale slaughter in Cambodia.

No, Sir. The Government deplore the systematic violations of human rights which have occurred in Cambodia. But the Cambodian actions, abhorrent as they are, do not, in the view of Her Majesty's Government, constitute a threat to international peace.

Why these double standards? When some event takes place in South Africa or Rhodesia the United Nations rises in its wrath. Will not the Government reconsider this matter, practise what they preach and take some positive action about the genocide of these people?

With regard to Southern Africa, South Africa and Namibia, the Government have always contested that such situations represent a threat to peace. We are entirely consistent in our approach to these things. With regard to Cambodia, however much we may deplore the situation there, it is clear that it is primarily a domestic matter and, therefore, not a matter for the United Nations.

Will my hon. Friend consider approaching the Inter- national Red Cross to see whether it can become involved in the depressing situation in Cambodia?

I entirely agree with my hon. Friend that one of the unhappy aspects of the situation in Cambodia is the difficulty that we have in obtaining reliable information about what is happening there. There would be very great value in the International Red Cross taking some action of the kind that my hon. Frend has suggested, but I cannot take responsibility for that.

Does not the passivity of the international community in the face of an almost Hitlerian scale of slaughter in Cambodia call in question the Declaration of Human Rights and, indeed, the validity of the Nuremberg trials? Ought not the Government now to take an initiative on this matter in the United Nations?

I have already expressed my own and the Government's condemnation of the kind of activities that we have seen or heard about in Cambodia over the last year or so. If it were to be taken up in the United Nations, the main responsibility would be on the neighbouring countries that are mainly affected. So far, the United Nations has not decided to intervene in what is an internal question. If anything, it is a question for the United Nations Commission on Human Rights, and I would be glad to see that body discuss the matter.

Is the Minister saying that nothing can be done to raise the question of the slaughter of 1¼ million out of a population of 7 million people in Cambodia? Is there not something that the Government can do to raise the matter positively in one of the council chambers of the world?

I have mentioned one body that could be concerned with a matter of this kind—the United Nations Commission on Human Rights. I would welcome that commission discussing the matter.

Rhodesia

2.

asked the Secretary of State for Foreign and Commonwealth Affairs whether he will make a statement about recent developments in relation to Rhodesia.

7.

asked the Secretary of State for Foreign Affairs whether he will make a statement on Rhodesia.

8.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a further statement on Rhodesia.

I hope to find a suitable basis for resuming negotiations that will lead to a peaceful transition to majority rule in 1978. It will, of course, be the chief topic of my forthcoming visit to Africa and a major subject to be discussed at the end of the week in London with Secretary Vance.

Is not the statement of the Rhodesia Government yesterday saying that Mr. Smith is still prepared to have a two-year transition to majority rule in certain conditions? Has not the time now come for the Government to establish an authoritative British presence in Rhodesia, which would help to work out arrangements for the interim period, including arrangements for the election of an African leader for that period?

I hope the hon. Gentleman is right in his interpretation of Mr. Smith's statement, but, as I understand it, the problem about that statement is that he was firmly tying the two-year majority period to the creation of an interim Government. That means a recipe for indefinite delay. The world—and certainly the British Government—expects a two-year period of majority rule to start from the time when Smith himself made these commitments. We ourselves have asked for majority rule to start from March 1976.

Order. I shall come to the Government Back Benches after I have called the other two hon. Members whose Questions are being answered in this group.

Now that the Geneva initiative has indisputably failed, is not the only course to invite Rhodesia to produce its own solution and when something acceptable and reasonable has been put forward to seek to impose some form of plebiscite, perhaps with American help? In this connection, is not Bishop Muzorewa the most hopeful figure on the African side?

It appears that the hon. Gentleman is advocating what is often called an internal solution. He will know that the United States Government have firmly said that they believe that this is not the way forward. That is also the view of the British Government. The problem is that Rhodesian opinion goes much wider than those who are currently in Rhodesia. What is at issue—[Interruption.] Hon. Members are entitled to their views. What we need is a stable solution that will last and not the production of something that does not meet the legitimate aspirations of the black people for black majority rule in a period of time after free elections. That is what is at issue.

How does the right hon. Gentleman imagine that he will achieve what he calls a stable solution if he rules out the possibility of any discussions with Mr. Smith in Rhodesia on his forthcoming visit to Southern Africa, if he also rules out—as I understood from his earlier reply that he did—the possibility of permanent British representation in Rhodesia and if he also continues to refuse the possibility of some reference to the Rhodesian people to determine who should lead an interim Government of that country?

The hon. Gentleman has assumed that I have ruled out three things that I have not ruled out. The first question is on a matter on which there is another Question on the Order Paper, and I should prefer to answer it when that Question is reached. The second question—whether it is the right time to establish a British presence in Rhodesia—I have not ruled out, although certainly I do not think it appropriate at present. As to the question of consulting Rhodesian opinion, that is very much one of the issues that one wishes to discuss. This is best done if one recognises that Rhodesian opinion goes outside the immediate confines of Rhodesia. Many Rhodesians are outside Rhodesia. What we need is a settlement that will bring about the cessation of guerrilla action and produce peace and stability around Rhodesia's borders. That is one of the issues.

Since Mr. Smith made a commitment to majority rule within two years, is it not the case that he has sought every opportunity to slide out of that commitment? Does not the statement yesterday lead to the final repudiation by Mr. Smith of majority rule within two years? In those circumstances, how can there possibly be a peaceful solution?

My hon. Friend's reading of that statement is more accurate than the other interpretation. I hope that that is not the case. I certainly do not wish to rule it out myself. I wish to have discussions with Mr. Smith in Capetown. I hope that he will think very hard before he rules out the possibility of majority rule within two years, that is, majority rule in 1978.

Will my right hon. Friend's conversations with the front line Presidents include discussion of the possibility of an international peace-keeping force in Rhodesia—either a Commonwealth force or a United Nations force?

I am perfectly prepared to consult and discuss any aspects, but it is a fact of life, whether we like it or not, that at present it would not be possible to put a United Nations peacekeeping force into Rhodesia. We have to accept realities, harsh though they may be. There may come a time, at a particular moment towards a peaceful settlement, when such a force could have a stabilising influence. I certainly do not rule it out of the question, but we shall look at it when the circumstances arise.

As what should matter to this House are the wishes of the people of Rhodesia, for whom we are responsible, why does the Foreign Secretary rule out an internal solution?

I think that it is dangerous to talk about an internal solution. That is becoming a shorthand term for a solu- tion that does not carry conviction with all those people who are representative of black nationalist opinion. That is the question. At this stage to rule out those black nationalists who are outside Rhodesia would be a recipe for continued violence and continued guerrilla activity around the borders. What is surely to be hoped is that black African opinion can be combined together to fight democratic elections inside Rhodesia under a supervised system that we can all respect. That is what I think all hon. Members on both sides of the House want to see.

May we wish the Foreign Secretary success on his maiden voyage to Africa? Does he agree that the first thing that he must establish is whether Mr. Smith is still committed to African majority rule in two years? Is the right hon. Gentleman aware that this is not the first time that there has been ambiguity in the language of Mr. Smith on constitutional matters? Secondly, does the right hon. Gentleman agree that the whole lesson of the Monckton and Pearce Reports is that unless there is African consent any constitutional settlement will be doomed to disaster? Therefore, does he not agree that it is vital to have a referendum not only on choosing a leader for Rhodesia as a whole but on any interim agreement that is put forward?

I agree that it is fundamental that there should be African consent. That was accepted by the Opposition when they were in Government. We have all recognised that this is the necessary ingredient for stability. I, like the right hon. Gentleman, hope that Mr. Smith really does mean majority rule in two years from when he first made that very important statement. I pay great tribute to Dr. Kissinger for having brought that forward. The danger that Mr. Smith now seems to be implying is that it runs only from when an interim government is established of which he has to be a part. That is a recipe for indefinite delay, and that would be unacceptable to world opinion and, I think, opinion on both sides of this House.

Does the right hon. Gentleman realise that his continual repetitive references to Rhodesians outside Rhodesia seem to put in question the adherence to the fifth principle, which was that nothing of a settlement would be achieved without the consent of the Rhodesian people as a whole? That is surely the essential background upon which we are all based. In those circumstances, does the right hon. Gentleman not think that the suggestion made by my hon. Friends today, that we should now be sensible enough to realise that, whatever Mr. Smith thinks, we should have a presence in Rhodesia able to guide us on how to consult majority opinion, is really an essential? Does he not think that that would be the most welcome outcome of his own visit to Africa?

I respect the way in which the right hon. Gentleman put his question. Concerning the Rhodesian people as a whole, I confirm that that is strongly my view. Whereas I was drawing attention to some people outside Rhodesia, we must never forget that the vast bulk of the population who need to be consulted are still within Rhodesia. They are also both white and black. I believe in a peaceful solution, and I wish to have a situation in which white Rhodesians would be happy to stay in Rhodesia and contribute to peace and stability there.

Secondly, on the question whether we should have some form of permanent presence there, there are arguments over that. I am quite open-minded, and I have not closed the door to such a presence. There is no doubt that we are not as fully informed as we would wish to be about what has happened in Rhodesia. Some way in which this could be achieved clearly would be of benefit, but clearly it could not involve recognition of a régime that is illegal and is in rebellion against the Crown. However, were we to reach some firm agreement about this, I should be open-minded about it.

I allowed a much longer time than is normal on that Question, but we shall have to go quicker now.

4.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will visit Rhodesia.

9.

asked the Secretary of State for Foreign and Commonwealth Affairs which Heads of Governments he expects to meet during his forthcoming tour of Southern Africa.

19.

asked the Secretary of State for Foreign and Commonwealth Affairs what up-to-date progress he is abe to assess for a successful outcome of the constitutional crisis in Rhodesia in the context of his official visit to Southern Africa.

As I told the House on 1st March 1977,

"I for my part stand ready at any time to go anywhere and talk to anyone if I judge that it will make a genuine contribution for a peaceful settlement."—[Official Report, 1st March 1977; Vol. 927, c. 205.]
I have no plans for visiting Rhodesia, but if the situation appeared to warrant it I would of course be prepared to go.

The House will be delighted to hear that the right hon. Gentleman is prepared to go to Rhodesia. Would not now be a very suitable time for him to go, and would he not gain a great deal more from meeting Rhodesians, black and white, in Rhodesia than he will gain from meeting President Podgorny's friends, particularly President Machel, the harbourer, shelterer and comforter of the murdering guerrillas?

I do not think that the hon. Gentleman makes a serious contribution to what is a serious issue. He knows that I am seeing people who hold all forms of opinion. He knows that in Cape-town I am seeing Mr. Vorster and that I shall see Mr. Smith. At this moment I do not judge it right to go to Rhodesia, but I do not exclude it. Much will depend on the circumstances, on the reception that I get and on what is said during the time that I am in Africa. All I hope is that Mr. Smith will not keep to the line that he appeared to be pursuing in his statement yesterday.

When my right hon. Friend is in South Africa will he be seeing Sir David Scott, the British Ambassador, who in a recent speech in Capetown boasted of Britain's good will to South Africa to the extent that he said that the only four times that Britain has used its veto in the UN Security Council have been in favour of South Africa? If that is a true reflection of the Government's position, it should be wholly condemned. If not, will my right hon. Friend bring back the ambassador permanently to this country?

I shall be seeing the ambassador when I am in Capetown. I have read his speech. It has been misreported in a number of directions, not least in the direction to which my hon. Friend has drawn attention. As I understood it, it was a strong plea to opinion in South Africa to recognise strongly-held world opinion about the racial policies that were being pursued in South Africa and the need to make changes and to modify its position, so that its present policies on apartheid would not be as repugnant to world opinion as they currently are.

Does the right hon. Gentleman agree that, whatever we may feel about Mr. Smith's record, he has over the past few weeks introduced measures designed to ease race tensions in Rhodesia in spite of European opposition? When he goes to Southern Africa will he acknowledge the introduction of those measures and give some encouragement to Mr. Smith?

I welcome any step in the right direction. I must tell the House in all honesty that the difficulty that some people in Rhodesia seem to have found over the Land Apportionment Act is a gnat compared with what they will have to accept in majority rule. The resistance to the Act and the difficulty that some of them have found in respect of it does not augur well to a commitment to majority rule within the time scale that we are discussing. However, any movement is to be welcomed.

Laos

3.

asked the Secretary of State for Foreign and Commonwealth Affairs whether Her Majesty's Government intend to recognise the new régime in Laos following the arrest and detention of the King and his immediate family.

The Government recognised the Lao People's Democratic Republic on 5th December, 1975. The reported arrest of the former King of Laos, who abdicated in November 1975, does not alter the legal position.

We have heard with regret and disquiet the reports of the ex-King's arrest, although no official announcement has been made.

I am grateful for that reply and for the fact that the Minister regrets that His Majesty has been a prisoner of the Communists. Is the Minister aware that His Majesty was a constitutional monarch who took no active part in politics within his country? In those circumstances, could the Minister use his influence with the provisional Government to secure the King's release and the release of his family, who are known to me personally?

Unfortunately, the position at present is very obscure. We know little more than what we have learned from the reports that the hon. Gentleman seems to have read. We shall certainly see whether we can make inquiries and we shall express our concern about the ex-King's fate.

Belgrade Review Meeting

5.

asked the Secretary of State for Foreign and Commonwealth Affairs what latest discussions he has had with EEC and NATO allies on the Belgrade review conference.

Intensive discussions on preparations for the Belgrade review meeting of the Conference on Security and Co-operation in Europe are continuing in the political co-operation machinery of the Nine and in NATO. This subject will be considered at ministerial level on 18th and 19th April in the EEC political co-operation context and on 10th and 11th May in NATO.

Will the hon. Gentleman tell the House when it is expected that the main part of the Belgrade review conference will begin? Will he assure us that Her Majesty's Government, together with our allies in NATO and the EEC, will be pressing that the meeting, contrary to what the Soviet Union wants, is held at top political level and mainly in public, and not merely between officials and mainly in private?

The preparatory meetings of the conference will be held at the end of June and in July. It will then be decided exactly when the main conference will take place and how long it will last. At that stage the procedural matters that the hon. Gentleman has raised will be decided. I think that the House as a whole hopes that at least a part of the conference will be in public, when the strongly-held views of all members of the conference can be expressed, including opinion about all aspects of implementation of the Helsinki Agreement. However, most of us would also accept that more useful progress would probably be made if at least a part of the conference consisted of confidential discussions.

Does the hon. Gentleman agree that one of the most important objectives for the West at Belgrade is to make it clear to the Soviet Union that an interpretation of détente that enables it to go on subverting our societies and supporting change by violence throughout the world is not acceptable to the West?

One of the main purposes of the meeting will be for all the Western members in particular to express their views about their interpretation of détente and the ground rules, for example, for peaceful coexistence between the two halves in Europe. I am sure that the hon. Gentleman's view will be expressed on that occasion. Most of us accept that detente is a complex process, which involves a number of aspects. The question of human rights is by no means the only aspect of concern, but it is one that many people will feel to be of the greatest concern to many Western countries.

Will the Minister use his influence, and encourage his right hon. Friend to use his, to ensure that the House is consulted on the preparatory steps for the Belgrade conference? Many Members on both sides feel that the House will necessarily have to be involved in the matter before the initial conference starts again.

I understand the concern that must be widely felt in the House and that has been expressed by the right hon. Gentleman, namely, that the House should be involved in this process. I understand that there are some who feel that there should be a debate in the House. That is primarily a matter for my right hon. Friend the Leader of the House. I shall draw my right hon. Friend's attention to the views that have been expressed.

International Year Of The Child

6.

asked the Secretary of State for Foreign and Commonwealth Affairs what positive steps are being taken by Her Majesty's Government to commemorate 1977 as the International Year of the Child as agreed by the United Nations.

The United Nations has agreed to commemorate 1979 as the first Year of the Child.

No decisions have yet been taken on the nature and extent of Government involvement, but it is our intention to participate fully in the commemoration of 1979 as the International Year of the Child.

I thank my hon. Friend for that reply, but I remind him that there was a great deal of reluctance on the part of the British Government to commit themselves to participate in the International Year of the Child, as correspondence that I had with the Department before my hon. Friend was there will testify. Will he ensure that initiatives are taken by the Government so that human rights for children are recognised here and abroad, and will the Government act also in respect of race relations?

Our reluctance, such as it was, concerned the nature of the commemoration, if any. I think that my hon. Friend will agree that in recent times there have been many "years" for this, that, or something else. Sometimes it has been questionable how much value was obtained for the cause in question. We were concerned that what took place would help children throughout the world. I take note of what my hon Friend says and I shall try to ensure that our contribution is of the sort to which she refers.

Will the hon. Gentleman spare a little pity for the children of Cambodia? You will recall, Mr. Speaker, the admonition

"Suffer the little children to come unto me."
In that light, will the hon. Gentleman provide some help to the children who have fled Cambodia into neighbouring countries, who need medicine and food now? Will he try to concert his policies with those of President Carter, whose stand on human rights has struck a chord in many parts of the world? Will he now do something about the problem of the children of Cambodia?

I have already expressed the Government's profound concern at the appalling atrocities that have been reported from Cambodia over the past year or so. I agree that we should try to do everything in our power to ensure that adequate assistance is given to all refugees, including children. As the House knows, we have been contributing generously to the United Nations High Commission for Refugees, which has a programme designed to help refugees from Cambodia. We shall be giving £350,000 this year for that purpose.

Does the hon. Gentleman realise that the issue goes beyond refugee children? Is he aware that in some parts of the world—for example, Ethiopia—children are held in prison without trial? Will the hon. Gentleman grasp the opportunity that the Question offers him to reconsider this matter and to take a more positive stand against the treatment of innocent children in so many countries?

I share the hon. Gentleman's hope that this occasion—the International Year of the Child, which has now been decided on—will be used as an opportunity to express the concern of the international community about children in the situation that the hon. Gentleman describes.

Namibia

10.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on his recent conversations with the United States Secretary of State so far as they concerned policy on Namibia.

My right hon. Friend's discussions with Mr. Vance remain confidential, but there was a substantial measure of agreement on our approach to bringing about early self-determination and independence for Namibia.

Does my hon. Friend agree that the United States and Western Europe between them command enough economic power to compel South Africa to get out of Namibia, and that if it does not do so not only will the savage racial war escalate in that part of the world but it will bring a greater conflict in East-West relations and a danger to detente?

I appreciate what my hon. Friend has said about the serious situations that may develop in Namibia and Southern Africa generally if South Africa does not change its policies. It has remained our position and it has been the position of the United States that we do not think that economic sanctions against South Africa will work.

Could the Minister publish at some stage the criteria that the Government produced for recognising an independent Namibia and say then, or now, whether the same criteria would apply to the Transkei?

If the hon. Gentleman looks at the terms of Security Council Resolution No. 385, which lays down the views supported by all Western nations in the Security Council, he will see the terms and criteria that we would use. They certainly do not fit the Transkei.

Lebanon

11.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on current relations between Her Majesty's Government and the Government of the Lebanon.

13.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on British relations with the Lebanon.

We have close relations with the Government of the Lebanon and have assured them of our willingness to do all we can to help the reconstruction of the country and the return to stability after the tragic war.

Is my hon. Friend aware that that answer is very much to be welcomed? Is he also aware that it is estimated that there are at least 250,000 people in the Lebanon very severely disabled as a result of the civil war whom the Lebanon cannot help from its own limited resources? Will he give serious consideration to the possibility of British medical and rehabilitative help, if he has not already done so?

Last year we provided £500,000-worth of humanitarian assistance. I shall certainly bring the point my hon. Friend has just made to the attention of my right hon. Friend the Minister of State for Overseas Development.

Is the Minister aware that the Lebanese Government have made it clear that there is a desperate need for technical assistance from us and that they have discounted financial assistance? Is he also aware that Her Majesty's Ambassador, together with engineers, recently visited the docks in Beirut, which were grievously damaged in the civil war? Will he assure us that every effort will be made to give British technical assistance to what is an outstandingly important commercial centre and a centre for free enterprise and the Western world in the Middle East?

I am grateful to the hon. Gentleman for that point. I assure him that in the aid we are providing technical co-operation is a priority. We shall be carefully considering what we can contribute to reconstruction.

Falkland Islands

12.

asked the Secretary of State for Foreign and Commonwealth Affairs whether discussions with the Government of the Argentine about the future of the Falkland Islands have begun; whether they include the issue of sovereignty; and if he will make a statement.

20.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will bring forward proposals for consulting the people of the Falkland Islands about their future relationship with the United Kingdom.

21.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement about Her Majesty's Government's policy towards the Falkland Islands.

As I told the House on 1st March, we are considering whether negotiations on the future of the Falkland Islands including sovereignty might take place. No negotiations have yet begun but if they do there will be full consultations with the islanders.

Will the Minister go rather further than that and confirm that there will be no change in the sovereignty of the Falkland Islands without the full consent of the islanders, and that no pressure will be put upon them by the Government to accept any such change against their wishes?

If the hon. Gentleman reads the Official Report of the debate on 1st March and the full statement that I made in response to questions he will realise that we have given very full assurances. I went so far as to say that the Government would not bring proposals to the House if they were not acceptable to the islanders.

Is the hon. Gentleman aware that the Foreign and Commonwealth Secretary said that the question of sovereignty would be decided in this House? Will he now give an assurance that the people of the islands will be given the chance of a referendum before any change of sovereignty is envisaged?

We have not even begun to negotiate yet, let alone have proposals which might be brought before the islanders or the House. It is therefore premature to anticipate in what form consultations can take place. We did not discuss this with the islanders when I went there. Clearly, this matter will come up, and how consultations will take place at a later stage will certainly be considered.

Do I understand my hon. Friend's statement today to mean that no change will be made without the express consent of the people in the Islands?

As I have told the House over and over again, we certainly shall not bring forward any proposals which are not acceptable to the islanders, and they must obviously receive the consent of this House.

Will the hon. Gentleman confirm, so as to allay some anxieties stemming from Press reports, that it is impossible for Argentinian business interests to gain control of the land of the Falkland Islands, because this requires the authority of the Secretary of State, which would certainly be withheld?

I would rather clarify the point that the hon. Gentleman is making. First, no land on the Falkland Islands can be alienated without the permission of the Falkland Islands Government, which is hardly likely to be forthcoming. Secondly, the British Government would not support such a move.

In view of the widely authenticated reports on the systematic suppression of human rights in Argentina, which my hon. Friend may have seen—the Amnesty report and others—does he think that this is an appropriate moment to enter into any kind of negotiations with that Government about the possible transfer of sovereignty over the Falkland Islands?

We all deplore abuses of human rights, wherever they occur. Nevertheless, the welfare interests of the islanders require our discussing these matters with the Argentinian Government.

This is one of the major difficulties of apparently reconciling the almost irreconcilable. Until we have had some discussions and negotiations, I could not forecast what their outcome might be.

Will the Government help the islanders in their present economic situation by making a decision to extend the airport runway, and incidentally help them to preserve their status?

The extension of the runway, costing more than £5 million on current estimates, is a serious and important project, but it seems to us that on present evidence it would be hard to justify it. It could bear very heavily on the current revenue problems of the Islands. We have not closed the door to the project, but we need more convincing that it is viable.

Will my hon. Friend on all occasions please refrain from using the phrase "whole-hearted consent"? We do not want to deceive the Falkland Islanders in the manner in which the ex-Leader of the Tory Party tricked this nation and dragged it into the Common Market.

I should not dream of using the undesirable terminology of Conservative Members.

Human Rights

14.

asked the Secretary of State for Foreign and Commonwealth Affairs what action Her Majesty's Government intend to take in the light of his public pronouncements on the human rights aspect of foreign policy.

We will systematically take human rights considerations into account and give a high priority to them as part of the many factors that have to be considered when making foreign policy decisions. Our aim will be to protect and enhance human rights everywhere and we shall take whatever action, private or public, we consider will be effective.

In view of the considerable stress the right hon. Gentleman laid in his speech on 3rd March on striking the right balance between morality and reality, will he now publish his Department's league table of human rights in different countries in the world, so that the House may more accurately assess the way in which the Government are responding to, say, Chile and South Africa on the one hand and the Soviet Union and Czechoslovakia on the other?

I do not intend to publish the list. This was one of the considerations that we had to take into account when we decided to look systematically at the question of human rights. We had to consider whether the mere existence of such a list would cause problems in relationships between the British Government and other Governments. The decision was taken to have the list as the only way of being serious about human rights, on the strict understanding that we would not publish it. That was decided after very careful thought, and it remains my decision.

As my right hon. Friend is to meet Dr. Vorster, will he convey to him privately or publicly our abhorrence of the apartheid system in that area, the occupation of Namibia, and the support that he is giving to the illegal régime in Rhodesia?

Some things are private and some things are public. My abhorrence of apartheid is public, and I shall state it wherever I am.

In the light of that answer, what action will the right hon. Gentleman take about those British subjects at present imprisoned in Angola for no crime known to international law?

It is important to try to get our relations with Angola on a better footing. That is certainly something that I wish to do. Many representations have been made about this issue, so far unsuccessfully. I think that the overall object is to improve our relations with Angola, and then some consequences may flow from that. I certainly understand the right hon. Gentleman's concern, which I share.

Does the right hon. Gentleman's reference to action everywhere include action within the European Economic Community, in regard both to bringing proper pressures to bear outside and to work on the possible formulation of a charter of rights in the socio-economic context within the Community, following the generalised action taken by the common declaration of the three political institutions of the Community?

A lot of work has been done on the common declaration. which I am due to sign formally in Brussels on 5th April. I hope that we look at human rights everywhere, not excluding the EEC. The price of championing human rights is a little inconsistency at times. There will be occasions when there is a strong case for public denunciation but when, for a variety of reasons—economic, political and social—the denunciation may need to be done privately. Therefore, we shall not always be consistent. No doubt Mr. Bernard Levin will have something to say about the alleged inconsistencies.

European Community

Heads Of Government

36.

asked the Secretary of State for Foreign and Commonwealth Affairs when he next expects to meet the EEC leaders; and if he will make a statement.

At the next meeting of the Foreign Affairs Council, which will be held in Brussels on 5th April.

Will the Foreign Secretary tell the EEC leaders that the United Kingdom Parliament is having a free vote not only on the method of direct elections but on the principle? Taking account of the fact that half the Labour Back Benchers have declared themselves against the principle of direct elections, will the Foreign Secretary accept that if he wants to get this legislation through he will need more than just a Labour-Liberal alliance; he will need a Tory one as well?

I accept that my hon. Friend is the first to advocate a belief in national independence within the EEC—

I do not believe that my fellow Foreign Ministers are interested in the procedure that we adopt. They are interested in our using our best endeavours to keep to the May-June 1978 target date.

Will the Foreign Secretary bear in mind the enormous political importance of the Middle East to Europe, and does he agree that it is preferable that European policy on this issue should be in advance of that of the United States? After President Carter's statement on a national home for the Palestinians, is there not a danger that we are trailing behind? Will he discuss this when he next meets EEC leaders?

It is important that there should be a peaceful solution to the Arab-Israeli dispute. One does not pursue that objective by talking about being in advance of or trailing behind the United States. We want a rational, positive policy. That objective has been broadly maintained, and it has been helped by the EEC forming a view of Middle East problems and keeping in close liaison and in general agreement with the United States. I do not see us either in advance of or behind the United States; I see us working together with them.

If we are unable, even using our best endeavours, to hold direct elections in May or June of next year, will it not cause our European partners not only to be unhappy with us, but to set back their own direct elections?

The Council decision made it clear that elections in the nine countries would proceed simultaneously over a four-day period. That decision would have to be changed if we were unable to stick to the target date and there was to be a go-ahead in other countries. Our partners expect us to use our best endeavours, but many other member States are finding difficulty in their legislative processes. Each member country must look after itself in these matters and each tries genuinely to honour any agreement to which it has put its name.

When the Foreign Secretary next meets his EEC colleagues, will he impress upon them the sense of frustration felt among the leaders of the fishing industry? Unless the EEC agrees quickly to a 50-mile conservation zone around Britain, the EEC ports will be blockaded not only by French boats but by Scottish boats as well.

There was a debate in the House on Monday night, and the Minister of Agriculture, Fisheries and Food will make a statement later today about the Council meeting. His actions and the Government's actions over the last year or so, when negotiating these matters, show that we are perfectly prepared to stand up robustly for justified British interests. We have never disguised our dissatisfaction with EEC policies on fishing, agreed in 1970.

In view of the very poor performance of the Common Market compared with the hopes of those who voted for our entry, will the Foreign Secretary welcome the setting up of a Select Committee, evenly balanced between hon. Members who are for and those who are against our membership, to go into the worthwhileness of our membership, or will he not dare to do so?

I am always in favour of Select Committee procedure. I think that it adds to the scrutiny of the Executive by the legislature. However, I think that that issue was put to the British people and they answered it decisively.

Direct Elections

38.

asked the Secretary of State for Foreign and Commonwealth Affairs what recent discussions he has had with his EEC colleagues on progress towards direct elections.

The Under-Secretary of State for Foreign and Commonwealth Affairs
(Mr. John Tomlinson)

There has been no recent discussion of direct elections in the Council of Ministers.

Has not grave damage already been caused to Britain's reputation and interests within the EEC by the delay in bringing forward a Bill for consideration by the House? With the possible exception of Belgium, all other countries are well ahead of us in their preparations for direct elections.

I do not accept that at all. More damage has been done by Conservative Members being obsessed with the belief that we are doing ourselves damage. The Government's position is clearly understood. In fact, I think that it is more clearly understood by our Continental partners than by Opposition Members.

When the Minister mets his colleagues in the Council, will he make clear that so-called hard-line resistance to the EEC does not encompass opposition to genuine international co-operative measures? Does he agree that no official Government White Paper or statement has outlined any obligation to direct elections at all, and that there is every reason for doubt about this matter?

Whereas I agree with the first part of my hon. Friend's observations, I strongly disagree with the second part—

My hon. Friend may have a loud voice but his shouting does not change the fact that implicit in a positive vote in the referendum was a commitment to our treaty obligations, which include direct elections.

Since the Government's deal with the Liberals irrevocably means a commitment to holding direct elections, will the Minister dispel the unworthy belief that the Government are deliberately postponing a decision on the method of election until it is too late to have any method other than an ignoble kind of gerrymandering to safeguard the Labour Party?

That is not even worthy of the hon. Member. It is the Government's intention to publish a White Paper soon and then put the matter to the House.

Does my hon. Friend agree that the British people have no desire to go any further into the quagmire that is the Common Market? They remember the days of the referendum with nostalgia. That was when unemployment was a mere 800,000 and butter was 20p a pound. Unemployment has now reached 1,300,000 and butter is 50p-60p a pound.

Much as I admire and respect my hon. Friend, I fear that, even as in the past, his judgment does not accurately reflect that of the people of this country.

Will the Minister confirm that there is some perplexity in Britain on the voting pattern in direct elections? Will he explain how anybody can start a system in which the vote of a Member of Parliament from, say, Britain will be worth only one-fifth or one-quarter of a vote by a Member of Parliament from, say, Belgium or Luxembourg in the new directly-elected Assembly? Is that not wrong, and is there not something that the Foreign Secretary can do forthwith in the Council of Ministers before we go wholeheartedly into this scheme?

Obviously all matters concerning figures were discussed fully before we entered into our agreement. I am sure that the hon. Gentleman, on reflection, will agree that the figure that he gave suggesting that the vote of a United Kingdom Member will be worth only one-fifth of the vote by a Belgian Member was totally wrong and misleading.

Since the subject of direct elections is of major constitutional importance, should there not be a free vote in this House on the principle of direct elections?

I note what my right hon. Friend says, but obviously that is a matter for other people than myself.

Does the Minister realise that his reply to his right hon. Friend the Member for Battersea, North (Mr. Jay) may cause a great deal of confusion, particularly as it conflicts with the robust assertion of the Government's intentions on the whole issue of direct elections? Does he not also appreciate that the Government's unqualified acceptance of the principle of direct elections, enunciated by the Prime Minister, commits the Government beyond all question and should not be subject to subsequent revision?

I repeat that that is a matter for other people than myself. My right hon. Friend the Prime Minister made the position quite clear in his statement to the House.

41

asked the Secretary of State for Foreign and Commonwealth Affairs what steps he has taken to ascertain the progress that other EEC member States are making in preparing for direct elections to the European Parliament in May/June 1978; and what has been the outcome of these inquiries.

The Government are keeping themselves closely informed of the progress in member States. Some have introduced legislation to adopt the Community agreement on direct elections in accordance with their respective constitutional requirements; but none has yet introduced legislation covering the holding of the elections.

May not the Minister find himself further behind the preparations of his European colleagues if, in introducing legislation on direct elections, the Labour Government deny the principle of single member representation so as to make enemies of many pro-Europeans, who hitherto have been pledged to support such legislation?

Is not the question of direct elections a matter of monumental unimportance to the European Community? Should we not instead be considering the political implications of the Greek and Portuguese attempts to enter the Community before we bother with any further ridiculous fetishes that will produce a totally unrepresentative Assembly that is incapable of representing the views of the British people?

Having answered a number of questions put by my hon. Friend in the European Assembly at Strasbourg, I know her views, but I disagree with her views on this matter as expressed in Westminster as much as I disagree with them when they are expressed abroad.

What are the three main advantages of the PR regional list system of European direct elections?

That is a matter for each Member of the House when the proposals emerge.

A few moments ago the Minister said that it was implicit in the terms on which we joined the Community that there would be direct elections. He did not say that it was explicit. Will he quote any speech or anything in writing from which it can be understood that there shall be direct elections?

I should hate to quote from my own speeches, but I can refer my hon. Friend to those if he wishes. If he gave me notice of the question I could find other references as well.

Passports

39.

asked the Secretary of State for Foreign and Commonwealth Affairs if he will make a statement on the latest proposals for a Europassport.

I refer the hon. Member to the Written Answers that my right hon. Friend gave to the hon. Member for Richmond, Surrey (Sir A. Royle) and the hon. Member for Bury St. Edmunds (Mr. Griffiths) on 2nd February. Since that time the uniform passport has been discussed in the European Community Working Group on Passport Union but several outstanding issues remain to be resolved.

Will the Minister now give a definite assurance on this matter, unclouded by Foreign Office verbiage? In the exercise of the Royal Prerogative, will he refuse to agree to the imposition of a Europassport until this House has taken a decision on the matter? In giving his reply, will he refrain from using words such as "desirable" or phrases such as "This is a matter for the Leader of the House"? We should like a firm assurance that no action will be taken to finalise the matter until we have debated it and decided it.

I agree in the most categorical terms that the House should have an opportunity to discuss the matter. The timing of the debate must be a matter for my right hon. Friend the Leader of the House.

Why cannot my hon. Friend say that the House of Commons "will" have such a debate and "will" take a decision? In view of the fact that there is no demand whatever among British people for this course, can we not tell our partners in the Common Market "Forget it"?

I assure my hon. Friend that nobody understands more than I do the strong feeling in this House on this matter. I give him my absolute word that what he and others have said has registered with us. We shall make sure that the House ought to have this opportunity, but the timing of the matter lies with my right hon. Friend the Leader of the House.

Is not the standardisation of travel documents far less important than the harmonisation of policies in Europe? Will the Minister leave the British passport alone and concentrate instead on making Britain a good citizen of the Community rather than the leading backslider that it is now becoming?

We believe that we can do nothing but strengthen the Community if we make sure that agreements reached by the Community, in whatever sphere of policy, genuinely reflect the interests of all the members of the Community and the British people, who are as much a part of the Community as is anybody else.

North-South Dialogue

42.

asked the Secretary of State for Foreign and Commonwealth Affairs what arrangements have been made by the Council of Foreign Ministers of the EEC to co-ordinate policy in respect of the North-South dialogue.

The Foreign Affairs Council on 8th March reviewed the Community's position in respect of the North-South dialogue. A common opening position for the Common Fund Negotiating Conference was agreed. The Foreign Affairs Council on 5th April will further co-ordinate the Community's position on the major issues arising in the CIEC, in which the Community participates as a single delegation. Meanwhile, the process of co-ordination is continuing at official level both within the Community and with the seven other industrialised countries participating in the CIEC.

My hon. Friend did not mention the Council of Ministers, on which we had a statement earlier this week. Is he aware that the Prime Minister drew a distinction between plans for "a" common fund and plans for "the" common fund? Will he say where any citizen of the EEC can find a specific authoritative statement dealing with what the Heads of State agreed, and what is the EEC's attitude to a common fund?

I am sure that my hon. Friend, with his usual careful attention to detail, will have scrutinised what the Prime Minister said in his statement after returning from Rome. It is clear that we are committed to working towards international commodity agreements and, as a Community, are prepared seriously to examine the rôle of a common fund in fulfilling that programme.

The Minister will recall that the Prime Minister has made clear that the Community proposes to call on countries of Eastern Europe to make a more adequate contribution towards development aid. How does the Community propose to undertake that task?

I assure the hon. Gentleman that we are concerned that Eastern European countries have not been pulling their weight in this respect. We must now work out precise techniques to make the point clear.

What is the EEC's attitude towards expanding the resources of the World Bank?

In our general approach to development matters, I must remind my hon. Friend that we are the second largest contributor to the World Bank. That remains our position within the Community and outside.

Is the Minister aware of the extent to which Third World opinion is concerned by the degree to which the EEC, together with North America, is pre-empting the fossil fuel resources of the world while at the same time making it difficult for nuclear power to be made available to the Third World? Will he draw the attention of his EEC colleages to this problem?

I assure the hon. Gentleman that members of the EEC are well aware of this problem and give a great deal of time to considering the matter in depth, and that they will see how a fair and equitable policy can be worked out in the interests of the developing countries as well as of the industrialised world.

As well as being concerned with the aid effort from Eastern Europe, is not the EEC equally concerned with the aid effort from Japan? Will he take the opportunity, when he next meets Japanese Foreign Ministers, of suggesting that much of the disagreement on trading matters between Europe and Japan could be mitigated if Japan were to assume some of the aid burden within the world?

I recognise the force of what my hon. Friend has said, but that is a matter for the OECD and the Development Assistance Committee within the OECD.

Manor Hospital, Epsom (Dispute)

(by Private Notice) asked the Secretary of State for Social Services if he will make a statement concerning the situation at the Surrey hospitals arising out of the denial to the hospitals of food and fuel necessary for the well-being of the patients.

I am informed that the difficulties stem from work rosters for domestic staff at the Manor Hospital, Epsom. These were agreed and implemented by members of the other unions concerned but proved unacceptable to a few members of the Transport and General Workers' Union. After considerable discussion, 30 members of this union were eventually suspended on full pay at the end of February, but the suspension was lifted on 21st March on the understanding that staff would then return to work. As, however, they were still unwilling to accept new rotas, they received notice of dismissal as being in breach of contract.

The 30 domestic workers were joined by about a dozen catering staff and pickets were established. Action spread to another four hospitals in the mid-Surrey health district. Although this action was unofficial, TGWU officials discussed the problems with local management late last week but felt unable to accept a temporary solution or a formal approach to the Advisory, Conciliation and Arbitration Service unless the area health authority first reinstated the 30 staff and agreed to restore the former rotas. Management was reluctant to accept this latter course, which would in any case have had to be put to the other staff who are content with the new arrangements.

Interruptions to supplies gave rise to fears for the well-being of patients, and preliminary steps were taken by the area health authority to seek an injunction to restrain allegedly illegal picketing. On Monday the Transport and General Workers' Union declared the dispute official.

In view of the apparent risk to the health and welfare of patients, my right hon. Friend the Secretary of State decided to intervene in order to cool the situation, to protect patients' interests and to get talks going again. He took three steps. First, at my right hon. Friend's suggestion the chairman of the area health authority called the parties together yesterday. Secondly, again at my right hon. Friend's suggestion, the chairman agreed to defer action on the application for an injunction in relation to picketing. Thirdly, my right hon. Friend asked the Transport and General Workers' Union for its part, to assist in cooling the situation by ensuring that picketing was peaceful and avoided action that would put the health of patients at risk. The union gave an assurance that action along these lines was already being taken.

In this connection, my right hon. Friend and I deplore the savage personal attack that was made yesterday by a certain newspaper on the General Secretary of the Transport and General Workers' Union, Mr. Jack Jones. Mr. Jones has a fine record of campaigning in the cause of the elderly and in relation to this dispute has done nothing to conflict with that record. Officials of the union have taken steps to ensure that picketing is kept within the proper bounds and that essential supplies are allowed through. This is entirely in line with the request made by my right hon. Friend the Secretary of State yesterday.

Following my right hon. Friend's initiative, talks took place yesterday and a joint statement was issued last night by the area health authority and the Transport and General Workers' Union in the following terms:
"An agreement has been reached on immediate appointment of a mediator through ACAS to look into the dispute in the domestic department at the Manor Hospital, Epsom. A further meeting has been arranged for tomorrow, Wednesday at 5.0 p.m. in an effort to reach a final and satisfactory agreement."
It would not be helpful for me to make any further comments while negotiations continue, but I am advised that although about 100 staff are still taking action essential supplies are now reaching the hospitals concerned, and I am assured that there is no immediate risk to patients. I shall continue to keep in close touch with the situation.

Is the Minister aware how abhorrent it is to members of the public and to many members of other unions working in these hospitals that a mere duty roster dispute should lead to suffering for some of the most unfortunate people in our society—the very old, the young and the mentally deficient?

Will the hon. Gentleman confirm that there have not been serious breaches of the law, as many people have suspected? What did he mean by saying that somebody will ensure that the picketing will be peaceful? Is not all picketing meant to be peaceful, and why has picketing that was not peaceful been tolerated at any time?

Naturally an industrial dispute in the National Health Service is to be deplored, but the right hon. and learned Gentleman should concentrate on the fact that the parties are meeting to try to resolve the dispute. He should not make the situation worse by raking up what might have happened in an earlier part of the dispute. It is important that picketing is peaceful, and the right hon. and learned Gentleman should concentrate on the fact that that has been achieved.

Does my hon. Friend agree that it takes two to create a dispute and that it will need two to strike a reasonable bargain? Does he agree that the right hon. and learned Gentleman and members of a party that has been clamouring for the massive expenditure cuts that have resulted in the run-down of mental health hospitals and the impossibility of building others should be the last people—together with parts of the media—to raise such a clamour now and to demand further public expenditure cuts at the same time?

It has always been my experience that it takes more than one person to make a dispute, but negotiations and discussions are proceeding and we should leave the parties to get on with it.

Is the Minister aware that hospital authorities at Schiff Hospital in my constituency were given 24 hours' notice by unofficial strikers to evacuate patients? Does he realise that the patients include geriatric and serious post- operative cases? The strike has subsequently been made official.

Does the Minister condemn such action? Can he say whether the normal procedures for appeal against dismissal exist in area health authorities and whether there is subsequent right of appeal to industrial tribunals? If so, why has the procedure been bypassed?

An appeal on grounds of unlawful dismissal or anything else, outside the Whitley Council machinery or any other machinery in the Health Service for the resolution of disputes, is a last resort. We should make every attempt to ensure that disputes are settled within the organisations in which they occur.

As for the action that has been taken. I do not think that condemnation will help. The important thing is that the parties will now get round the table to discuss the issues, and that is the way that we should encourage things to develop.

Does the Minister accept that many of my constituents who have relatives in these hospitals will be grateful to the British Press—notably the Daily Mail—for drawing the attention of Mr. Jack Jones to the crimes against humanity being committed in the name of his union? Should we not be grateful that there is a free Press in this country that is prepared to champion the rights of innocent patients who are being used as pawns in what seems to be a routine industrial dispute?

In respect of one particular newspaper report yesterday, I have no hesitation in saying that it did not help the resolution of the dispute at all. The leadership of Mr. Jack Jones in solving the dispute has been nothing but helpful.

Does the Minister accept that in the eyes of many people the Secretary of State's intervention has been both too late and inadequate? Is it not quite appalling that a section of the community that is least able to defend itself should be exposed to such behaviour? Will the hon. Gentleman condemn clearly, simply and unequivocally such behaviour affecting the care of the sick? Does he think that the structure of the trade union negotiating procedures is adequate for health matters, and will he look into this?

On the question about the machinery for trade union negotiation, trade unions and management are negotiating and that is the essential point. As for the Secretary of State's intervention, it was nicely timed and wholly adequate in that it achieved everything that it set out to do and got the dispute back on to the right lines again.

European Community (Agriculture Ministers' Meeting)

With permission, Mr. Speaker, I wish to make a statement about the Council of Agriculture Ministers which met in Brussels from 25th to 29th March. My hon. Friend the Parliamentary Secretary represented the United Kingdom.

The Council did not reach agreement on Community agricultural support prices for 1977–78, and discussion will be resumed at the next meeting in Luxembourg on 25th and 26th April. The consequence is that the EEC common support prices and the United Kingdom's guaranteed price for milk and the target price for beef under the beef premium scheme remain unchanged for the present. At the request of France, Ireland and Italy the Council accepted changes in the green currencies of those countries.

Eight member States would have been able to agree on a final package of changes from the Commission's original proposals, including slightly bigger price increases. In a long and hard session, my hon. Friend maintained that we should be prepared to accept the changes in common prices and a small devaluation of the green pound only if there were adequate compensating action of food prices in the United Kingdom. In this connection the United Kingdom put forward proposals for a butter subsidy which would have achieved this and also helped to dispose of part of the Community's expensive butter surplus. Unfortunately the final package did not offer sufficient advantages to the United Kingdom and we were, therefore, not prepared to accept it.

The Council also considered measures for the establishment of catch quotas for fish and other control measures in certain areas of the waters of member States. As my hon. Friend the Minister of State explained to the House on Monday evening, the United Kingdom could not agree to these measures, which would have adversely affected our rights in United Kingdom waters.

Is the right hon. Gentleman aware that I made clear in the House on Monday that we regard the fish proposals as unacceptable? However, will he tell us what he would be prepared to accept? It is hard for us to see who has gained anything from this rather prolonged and obviously bitter argument. What is the cash amount separating what the right hon. Gentleman has been offered on the butter subsidy by the Council of Ministers and what he has been asking for on behalf of the Government?

Does the Minister realise that his statement will be particularly distressing for the producers of pigmeat, whose problems are still in the air despite the almost calamitous reverses they have suffered in recent months, and for the producers of beef, who will face some serious consequences as a result of the further devaluation of the Irish green pound? Does he realise that, although he may have a difficult task in his negotiations, the producers feel that he has consistently let them down?

It is difficult to say exactly what one would accept in a package when it contains about 40 different regulations. As the right hon. Gentleman and those of his colleagues who have negotiated in Brussels know, the package must be accepted in its entirety. Once one starts disentangling it and saying that one is prepared to accept this or that, no one accepts anything. The package as a whole was unacceptable for the simple reason that what was being offered to the United Kingdom, which alone among the Nine had an interest in preserving prices at the most reasonable level for producers and consumers, was totally out of proportion to the price that would have been paid.

The right hon. Gentleman asked about only one part of the package. The final offer on butter was that there would be a subsidy, averaged over the year, of 7p a pound to the United Kingdom for a price that was at least 50 per cent. higher than that. I did not regard that as a very good deal for us.

I understand the difficulties of producers. I have checked the records, and if an agreement had been reached in Brussels it would have been the quickest agreement ever reached by the Council of Ministers. The Commission brought forward its proposals two or three months later than usual, and we had to go to the European Assembly for its view only a day before the five-day marathon in which we were engaged. It was always going to be difficult, but I was not without hope that we might have been able to come to an agreement. However, we could not do so.

We were at least able to end one fairy story that I hope will never be repeated—namely, that all we had to do was offer a devaluation of the green pound and the pigmeat mcas would be recalculated. The Danes made clear that, whatever we did on the green pound, they regarded a recalculation of the pigmeat mcas as intolerable.

On that last point, did not the Minister miss an opportunity last autumn of securing a renegotiation of pigmeat mcas? Will he answer my question about the cash amounts separating what was offered on the butter subsidy and what he was asking for? Am I right in thinking that it amounts to about ¼p? Is that not a rather small amount compared with the effect of some of the Budget proposals on fuel oil and petrol?

One must look at the package as a whole. It contained many other things, including no change in the calculation of pigmeat mcas. While we might be willing to accept some parts of the package, we were not able to accept it all. The cash difference at the end of the day remained very considerable.

On the right hon. Gentleman's point about a green pound devaluation affecting pigmeat mcas last autumn, it is not customary to reveal the details of conversations with other Ministers, but I think that the right hon. Gentleman has got it wrong.

Is my right hon. Friend aware that he will both deserve and receive the overwhelming support of the British public if he continues to resist uncompromisingly the crazy proposals of this ridiculous organisation?

May I express my admiration and congratulations to the Minister for his stand on the butter issue? The price of butter has increased by 55 per cent. in the last 12 months, and it cannot go on. Does the right hon. Gentleman agree that six months is too long to finalise prices in the annual renegotiations, and does he think that confidence will ever be restored if we carry on with this practice? What proposals has he to help beef producers who will lose up to £30 if they sell their cattle in April?

I freely admit that it is difficult for the beef producers. I am afraid that there is nothing that I can say about that situation. It is the inevitable result of the price negotiations not having been completed. The precedents show that they are seldom completed in March, but I know that is not much consolation. We shall have to see what we can do.

Regarding the time element, I think that the hon. Gentleman was referring to the transitional steps on butter. These are laid down in the Treaty of Accession which, after all, is the basis on which we entered the Common Market. They are totally and utterly immutable.

Given that the right hon. Gentleman is outnumbered eight to one in Europe, is it not really a case of "We're a' oot o' step but oor Jock Silkin"? What real chance is there of agreement next month or the month after, since our farmers have to deal with last year's prices to meet this year's costs? Will the right hon. Gentleman give a firm assurance that devaluation of the Irish green pound will not continue to have a harmful effect on the Scottish market? What steps can he take to protect Scottish beef farmers?

On the last question, I do not know; we shall have to wait and see. The effect of the devaluation of the Irish green pound, which was quite a large devaluation, will mean that Irish beef will tend to find its way into markets in Europe other than our own. Therefore, that part of the competition will not take place. However, we shall have to wait and see. This is the possibility. If the hon. Gentleman cares to wait and see and be a little patient, we shall have more evidence of what happens. I take it that even the hon. Gentleman would not have devalued the United Kingdom green pound to the same extent as the Irish green pound has been devalued. If he would, that would be one of the many reasons for which I should thank God for a Labour Government.

I hope that my right hon. Friend will accept the congratulations of most hon. Members in this House and of people in the country as a whole who regard his conduct and that of the Parliamentary Secretary as in marked contrast to the supine nature of the conduct of negotiations between 1970 and 1972 and, for that matter, the renegotiation in 1974. Does he agree that behind that lies the whole question of tine end price obsession of the common agricultural policy and the consequent creation or surpluses which flow from it, with which the Opposition are also obsessed, rather than the proper expansion of British agriculture?

It is a question of the end prices. That is why we have a butter mountain of 200,000 tonnes and why, unless steps are taken now, it will grow and grow until nobody knows what on earth to do with it and we see the end of this policy.

Will the right hon. Gentleman bear in mind that delay in coming to an agreement is a serious matter in terms of confidence in the production of food and of halting the drop in production in British agriculture? Will he also bear in mind that he has sacrificed home production and the British farmer for the consumer? As it would mean a less than 1 per cent. increase in the cost of food in the long term, what he has done is very serious indeed.

I am afraid that the hon. Gentleman's figure on food prices is wrong. The figure is actually 3p in the pound. I am using the Commission's figure on food prices. To those who are paying the bills, particularly those on low incomes, it is a very great figure. I agree that any delay is difficult for British producers. I can only say that they, like the rest of the community, would prefer a fair rather than a bad package.

We have been told that we should willy-nilly have accepted the Commission's first package. Had we done so, that would have created an unparalleled rise in prices. Had we done so, we should have been the only country to accept the Commission's proposal. Perhaps the Opposition will tell us here and now whether they would have agreed to accept the Commission's last proposal, which would have been a tremendous increase over its first proposal.

I congratulate my right hon. Friend on the stand that he has taken against the oppressiveness of the common agricultural policy and the Prime Minister on having supported him in this matter. Is my right hon. Friend aware that, by their agreement when in Government to enter the Common Market, the Conservative Opposition are responsible for the very problems that they are mentioning today? Does he agree that the real problem is the uselessness of the CAP to Britain? Will he and the Prime Minister take steps radically to change or abolish the common agricultural policy as that is the real cause of what Britain is suffering from today?

I have never disguised from the House my own view of the common agricultural policy. However, at Brussels during the last five days and nights my aim was to stop an oppressive price rise, which the Opposition supported, at the expense of the British housewife.

What message has the right hon. Gentleman for pigmeat producers, who are currently producing every pig at a financial loss? What message does he have for beef producers, who will have to face an additional export subsidy from Ireland? I acknowledge that he is standing up for the interests of the British housewife, but what estimate has he made of the consequences of this uncertainty to the security of future food supplies from home sources?

One of the results that must be obtained is the continuance of the variable beef premium. On that remained absolutely firm. I have already mentioned beef prices, and I do not particularly want to go into that subject.

It is only a matter of two months ago that I informed the House, in answer to a question from an Opposition Member, that I was introducing a subsidy because of the unwillingness of our partners or of the Commission to move to a recalculation of pigmeat mcas. That subsidy remains. I know that the position is difficult—it is bad—but if we had not been willing and prepared to provide that subsidy at that time, the position would have been desperate.

Order. I shall call those hon. Members who have already risen, if they will be brief.

Is the right hon. Gentleman aware that in his brief statement he has given the House no detailed information on the points that separate him and his colleagues in the Council of Ministers? We shall take an early opportunity of returning to this matter in order to give him a chance of repairing his lamentable failure to do so.

I should be grateful if the Hat hon. Gentleman would make that a firm promise. I begin to understand how it was that when in Government and negotiating on the various foolish attempts that they made in the past the Opposition failed to arrive at anything sensible. [HON. MEMBERS: "Answer."] I shall answer the question. There were a number of different items, because this was a package. If the right hon. Member for Yeovil (Mr. Peyton) expects me to answer that in detail, all I can say is that my opinion of him as a negotiator is even lower than it was earlier.

Is my right hon. Friend aware that his degree of realism is the first that we have seen of any sensible negotiations in the Council of Ministers? Should he not point out, not only to the consumer but to the producer in this country, that unless he gets a radical revaluation, particularly of the dairy aspects of the common agricultural policy, we shall be in a worse situation in 12 months than we are at the moment, and that the farming community will have to pay for it?

My hon. Friend is correct. If prices of farm commodities go up, consumption goes down. Time and again it has been proved that it is the farmers who lose.

Does the Minister agree that the last time the Irish changed the value of their green pound the British beef producers were hit because Irish exports undercut the market? In view of the failure of the Government to renegotiate the MCA for pigmeat and in view of the increased costs of production and the fall in the value of the market in pigmeat, will the Minister consider increasing the 50p subsidy, which has been a great help so far?

I have already dealt with mcas. In January other circumstances contributed. We shall have to wait and see how pigmeat works out. We must be serious about it. I am being taken to court on this matter. I can hardly increase a subsidy on which I am about to be taken to court.

I congratulate my right hon. Friend on the fight he has put up in Europe. It is peevish of the Opposition not to recognise what my right hon. Friend has done. I am sure that their attitude will be noted in the Stechford by-election. Will my right hon. Friend confirm that 1 lb of butter that cost 24p when we entered the EEC will cost £1.20 by the beginning of next year if the green pound protection is withdrawn? Is that not contrary to the Government's policy of keeping prices down? Does he agree that the common agricultural policy is highly inflationary and that we should abandon it?

What, if any, discussion took place on the production of isoglucose? I understand that there is a proposal to increase the levy to £28. Does not the Minister agree that that is too high and that it will put at risk the technological development of this important commodity? Will he continue to resist it?

Order. An hon. Member below the Gangway has a loud voice. I hope that he will let us get on with the business.

This was one of the issues on which the United Kingdom delegation made a strong plea indeed. It still remains to be settled, because, after all, the package or its successors remain to be negotiated. I agree that it was a bad offer.

In his statement my right hon. Friend said that the beef premium scheme would continue meanwhile. Will he amplify that and take the opportunity to emphasise that there is no division between producers and consumers, because if we have prices that are too high both will suffer?

My hon. Friend is right on the latter part of his question. The variable beef premium remains part of the matters to be negotiated. We have every prospect now of continuing it. I asked the Commissioner about the Milk Marketing Boards. I received an assurance from him that he viewed them favourably and that he hoped to put the issue to the Commission in the near future.

Do not all the goings-on in the past three days illustrate the absurdity of trying to get a common agriculture policy for nine different countries at different stages of economic development and with different climates? Would it not be better to go back to a national agriculture policy and win for ourselves more imports from outside the EEC, as suggested when the Official Opposition agreed to the amendment of the motion the other night when we debated the EEC price review?

It must be clearly understood—incidentally, it was five days and nights, not three—that the basis on which we entered was that there were different systems of agriculture with different requirements and that that at least required some careful handling. We must remember that the end package can never be to the advantage of all. A liberal importation of foodstuffs from outside the Community remains the policy of the Government. In the light of what we have been pressing for for years I am delighted to hear that Opposition Members are coming to agree with that policy.

Does my right hon. Friend recall the right hon. Member for Sidcup (Mr. Heath) speaking on a radio programme on 4th July 1971? Does he recall the right hon. Gentleman, when advocating entry to the EEC, saying that the cost of food as a result would be a ½p in the pound for each of the six years that we were changing to the EEC system of food prices? Can my right hon. Friend tell the House what the cost has been and what the cost of the proposed package from the Commission will be for this year? If he cannot do that now, will he undertake to give an answer later?

I missed that radio broadcast, but I received reports of it. It has proved to be inaccurate. If my hon. Friend cares to write to me, I shall give him a detailed account.

Does the Minister fully appreciate that our credibility in Europe is being damaged through the Government and their supporters constantly dragging their feet on European matters? Will the Minister address his mind to the difference between him and his eight European colleagues and tell us exactly what that difference is? Does he agree that the proposals amount to 1 per cent. overall on food prices, or ¼p on the cost-of-living index?

No, the difference is much greater. It is a question of principle and of whether one is in favour of a high-priced food economy. Furthermore, I prefer our present position to total invisibility in Europe.

Although I appreciate that the right hon. Gentleman is desperately short of sleep, will he take time to tell the House whether one of the items in the package involves the sheepmeat régime? Is he aware of the present iniquitous position in which the French are increasing the levy on lamb and yet lamb is entering the original six countries free of levy by the back door via Britain and Germany?

European Community (Agriculture Ministers' Meeting)

I beg to ask leave to move the Adjournment of the House, under Standing Order No. 9, for the purpose of discussing a specific and important matter that should have urgent consideration, namely,

"the failure of the Minister to give adequate reasons to the House for the breakdown of negotiations in Brussels on the farm price review for 1977."
The House is entitled to a better explanation from the Minister. Those who represent consumers are also entitled to a better explanation of the reasons for his failure to agree on this matter—particularly as it would mean only about ¼p in the pound on the cost of living. It is also important to those who represent producers that they should have a better explanation from the Minister.

The matter is urgent. Time is not on our side. I do not believe that the Minister realises the importance to the confidence of the home producer of getting a speedy decision in these matters. Sowing and ploughing do not wait for Government decisions. The farmer wants to know where he is. He wants a definite price and programme in front of him.

The matter is also important because much is at stake. The future of British agriculture is at stake and the track record of this Government is not encouraging. Last year, production fell by 10 per cent. Therefore, these matters are important not only to the producer but in the long term to the consumer. That is the problem: the Government are considering these matters in the short term, not the long term.

The matter is important also not only because of the future of production but because of the importance of a much clearer picture for certain sections of British agriculture, which in the long run will affect the consumer. The pig industry has been frittered away by this Government, for example.

This matter is important also because of the effect of the devaluation of the green pound in Ireland but not in this country. We need a much fuller explanation of this.

I am sorry for the short notice I gave, Mr. Speaker, but I believe that these things are important. They are certainly specific. I hope that you will consider my application seriously.

The hon. Member for Devon, West (Mr. Mills) is well within his rights in acting as he has done when a matter arises out of a Minister's reply. He had no need to apologise for the shortness of notice.

The hon. Member asks leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he thinks should have urgent consideration, namely,
"the failure of the Minister to give adequate reasons to the House for the breakdown of negotiations in Brussels on the farm price review for 1977."
I listened carefully to the exchanges in the House this afternoon. What I have to decide is whether an emergency debate should take precedence over the ordinary business set down. The House knows that, under Standing Order No. 9, I have to take into account the several factors set out in the Order but to give no reasons for my decision. I have to rule that the hon. Member's submission does not fall within the provisions of the Standing Order. Therefore, I cannot submit his application to the House.

Royal Assent

I have to notify the House, in accordance with the Royal Assent Act 1967, that the Queen has signified Her Royal Assent to the following Acts:

  • 1. Social Security (Miscellaneous Provisions) Act 1977.
  • 2. International Finance, Trade and Aid Act 1977.
  • 3. Nuclear Industry (Finance) Act 1977.
  • 4. Job Release Act 1977.
  • 5. Representation of the People Act 1977.
  • 6. Town and Country Planning (Scotland) Act 1977.
  • 7. General Rate (Public Utilities) Act 1977.
  • 8. Agricultural Holdings (Notice to Quit) Act 1977.
  • 9. British Airways Board Act 1977.
  • Bill Presented

    Cruelty To Animals Act 1876 (Amendment)

    Mr. Kenneth Lomas presented a Bill to amend the Cruelty to Animals Act 1876: and the same was read the First time; and ordered to be read a Second time upon Friday 20th May and to be printed. [Bill 97.]

    Dunfermline College Of Physical Education For Women (Change Of Name)

    4.16 p.m.

    I beg to move,

    That leave be given to bring in a Bill to require the Secretary of State for Scotland to rename Dunfermline College of Physical Education for Women, situated in the purpose-built specialist facilities in Cramond, West Edinburgh, 'The Scottish College of Movement and Education'; and for connected purposes.
    The purpose of this Bill, which has the support of the college, is to recognise the present Dunfermline College of Physical Education for Women for exactly what it is—a centre of excellence for sport and physical education and an outstanding national asset. This is in no sense a party political matter, since the sponsors of the Bill represent every party in Scotland.

    I am somewhat hesitant about introducing the Bill, since it seems to be different from almost all recent legislation in three respects. First, it will cost the taxpayers nothing. Second, it will create absolutely no administrative difficulties. Third, the suggested change of name is logical and will cause no anomalies.

    First, I will deal with the logic of the change of name. At present, the college is called the Dunfermline College of Physical Education, but it is in Edinburgh, at a considerable distance from Dunfermline. At least one might expect it to be called the Edinburgh College of Physical Education, but that would not do either, since both its catchment area and its influence extend throughout the Scottish nation.

    It is also a diminution of its rôle to describe it as a college of physical education. Its rôle is already that of a national college, so calling it such would involve no reorganisation. As a result, there would be no expenditure apart perhaps from changing the letter heading on some notepaper.

    Second, the name should provide an accurate description of the nature of an institution. The college is not at Dunfermline and it does not deal with physical education alone. Since the college is a national college and the only one for women students in Scotland, training students from and supplying teachers to every region in Scotland, the term "Scottish" is accurate and reflects its national nature.

    Third, the college is not concerned only with training physical education specialists to degree standard. It already runs a post-graduate course in recreation and leisure and it has research projects in movement therapy for the disabled. It contributes to the academic study of this area. It also contributes to and collaborates in high level sports coaching for national teams. It is these aspects of its work which would be reflected in its new title.

    Fourth, "Dunfermline College of Physical Education" indicates only the training of teachers, whereas "Scottish College of Movement and Education" covers the full spectrum and allows for diversification. Ever since 1965, the college has been pressing for further diversification and a change of name and it has not had a final answer on the matter from the Scottish Office. That is the reason for the Bill. The Long Title mentions the purpose-built special facilities in Edinburgh and it is hard to imagine anyone so insensitive as to think of the college being anywhere else.

    I hope that there will be no opposition to the Bill because there is something in it for every political party. It is sensible and represents no burden to the taxpayers, so it should recommend itself to the Conservative Party. It makes clear to the world the possession by the Scottish nation of an outstanding educational asset, so it should commend itself to the Scottish National Party. One of the purposes of the college is to improve co-ordination; that should appeal to the Liberal Party. Finally, its new title, including both the words "education" and "movement", should have the support of both the Labour Party and the Scottish Labour Party, each of which is now engaged in educating the Labour movement in Scotland. I commend the Bill to the House.

    Question put and agreed to.

    Bill ordered to be brought in by Lord James Douglas-Hamilton, Mr. Hector Monro, Mr. George Younger, Mr. Malcolm Rifkind, Mr. Alexander Fletcher, Mr. Robin F. Cook, Mr. Jim Craigen, Mr. Dennis Canavan, Mr. Donald Stewart, Mrs. Margaret Bain, Mr. Russell Johnston and Mr. James Sillars.

    Dunfermline College Of Physical Education For Women (Change Of Name)

    Lord James Douglas-Hamilton accordingly presented a Bill to require the Secretary of State for Scotland to rename Dunfermline College of Physical Education for Women, situated in the purpose-built specialist facilities in Cramond, West Edinburgh, 'The Scottish College of Movement and Education'; and for connected purposes; and the same was read the First time; and ordered to be read a Second time upon Friday next and to be printed. [Bill 96.]

    Orders Of The Day

    Ways And Means

    Order read for resuming adjourned debate on Question [ 29th March].

    AMENDMENT OF THE LAW

    That it is expedient to amend the law with respect to the National Debt and the public revenue and to make further provision in connection with finance; but

  • (a) this Resolution does not extend to the making of amendments with respect to the surcharge imposed by the National Insurance Surcharge Act 1976 other than amendments for affording relief to charities; and
  • (b) without prejudice to any authorisation by virtue of any Resolution relating to value added tax, this Resolution does not extend to the making of amendments with respect to that tax so as to provide—
  • (i) for zero-rating or exempting any supply;
  • (ii) for refunding any amount of tax;
  • (iii) for reducing the rate at which tax is for the time being chargeable on any supply or importation otherwise than by reducing that rate in relation to all supplies and importations on which tax is for the time being chargeable at that rate; or
  • (iv) for any relief other than relief applicable to goods of whatever description or services of whatever description.—[Mr. Healey.]
  • [ Relevant Commission Documents: Nos. R/566/77, R/567/77, R/236/176 and R/2520/76.]

    Question again proposed.

    Budget Resolutions And Economic Situation

    4.21 p.m.

    I would join with my right hon. Friend the Leader of the Opposition in congratulating the Chancellor—if he were in the House at the moment—on his speech and particularly on its brevity. It sets a good precedent in many respects, and it is the least we are entitled to expect from him by way of compensation for the frequency with which he has troubled the House on budgetary matters.

    It is a useful opportunity today, after we have had so many excursions from the right hon. Gentleman, to look back over the three years of Healey Chancellorship and to try to assess it. In one respect I think that we may say that he has been constant to himself throughout, because he has demonstrated from beginning to end his infinite capacity for trying to snatch the appearance of victory out of the jaws of defeat. Had we not known him so well we would have been astonished to hear of the humiliation of the country in the negotiations with the International Monetary Fund last December, which he described yesterday as "striking financial successes".

    We remember the first Budget which the right hon. Gentleman introduced three years and four days ago which, with characteristic modesty, he described as
    "the turning point in our people's post-war history."—[Official Report, 26th March 1974; Vol. 871, c. 328.]
    Perhaps we may be forgiven for wondering whether he was in agreement with the rest of the House as to the way in which we were turning at that time.

    I am glad to see that the Chancellor has arrived in time to hear at least part of my speech. I am considering his three years' stewardship of the affairs of the nation. I was about to say how fortunate we are to have on the record, apart from his observations in the House from time to time, the benefit of his own considered judgment on his conduct of our affairs, as recorded by Mr. Kenneth Harris of the Observer last Sunday. The House may remember that the Chancellor was asked what he had achieved and in what he had failed. He began:
    "Failure is a rather loaded word.… You could say that so far I have failed to get the economy as I would like it. We've got high unemployment, which has still been rising; the rate of inflation is much higher than it should be; and our industrial performance is not significantly better than it was in 1974; so I haven't yet achieved my major objective."
    The last sentence which I want to quote reads:
    "But I could argue that even in these fields the situation would have been even worse without me."

    Would not the right hon. and learned Gentleman agree with me that that was also the view of the domestic and financial market as expressed by the fall of £1,400 million in stock values the moment there was some vague suspicion last week that the right hon. and learned Gentleman might be in charge of our financial affairs?

    But would not the Chancellor accept, much more realistically, that the reaction of the markets today is due to the extent to which he was compelled to accept the advice received from this side of the House rather than from his own side? We know that the Chancellor has many attributes—they are all described in these articles—including a vivid imagination. But it is difficult to see just how matters could have been worse without him.

    Prices have risen by 70 per cent., real take-home pay has gone down by 9 per cent., industrial production is down by 2 per cent., public expenditure is up by 100 per cent., and income tax is up by 140 per cent. Perhaps most telling of all, the rate of bankruptcies and company liquidations in our society has more than doubled since the Chancellor arrived in the Treasury. In the last quarter of 1976 there were 1,876 company liquidations, the highest figure ever recorded in Britain.

    Unemployment has gone up by 750,000. As an inevitable consequence of the arithmetic which the Chancellor gave us yesterday, it is likely to go on rising into the foreseeable future. The Chancellor may dimly recollect that he was elected to his high office on the slogan "Back to work with Labour". That seems to have been translated into "Make Britain a land fit for liquidators to live in".

    It is particularly alarming to see the Prime Minister, who has apologised that he cannot be here this afternoon, reported in an interview last week as saying after all this
    "I take the view that we are only half way through the job that we started on."
    We would as soon be spared the other half if it is to be anything like the first half.

    By every measurable standard, the country is much worse off than it was before the Chancellor went to the Treasury. I hope that we shall hear no more, in this or any other debate, from him about the transformation he has wrought in our affairs, the new stability he has brought to our economy. For the British people his three years in the Treasury have been disastrous and entirely wasted.

    The second point I want to make is that it is important for the House, and particularly Labour Members, to understand the scale and the importance of the change that has taken place in the Chancellor in recent months. We on this side of the House welcome the fact that the Chancellor who embarked in 1974 upon a massive increase in public expenditure has for the last year been trying to do exactly the opposite.

    We welcome the fact that the Chancellor who put up the standard rate of income tax from 30 per cent. to 35 per cent. now has plans for reducing it to 33 per cent. We welcome the fact that the Chancellor who once boasted of his plans to make the rich howl with anguish has now been compelled, by the howls of anguish from millions of trade unionists and working people, to abandon that destructive and stupid intention.

    Of course, the Chancellor changed position in a way that was characteristic of him. Anyone not familiar with the history of the past three or four years, and listening to the Chancellor in yesterday's debate, might have been forgiven for thinking that the lesson that high income tax does great damage had been unearthed and revealed to the country solely because of the intellectual courage and originality of the Chancellor himself, after burrowing through the red Despatch Boxes that he tells the world he finds so exciting. If I may give him some advice, he would have been far better advised to stick to his original ambition, which is characteristically modest and more fruitful, of writing the world's greatest book on the philosophy of art.

    I tell the Chancellor that his personal credibility would have been enormously improved if he had admitted that the propositions he now advances run entirely counter to everything he has previously said or done. The House and the Labour Party should be in no doubt about the scale of the reversal which has taken place between 1974 and 1977.

    In 1974 this great tax reform was not an accidental exercise. In his Budget speech then he said that he was embarking upon a
    "deliberately and carefully considered redistribution of fiscal burdens".—[Official Report, 26th March 1974; Vol. 871, c. 295.]
    He is now embarking, apparently equally deliberately, on an attempt to reverse that very process. Then the right hon. Gentleman planned an expansion of public spending. Today he plans a reduction of it. Then he gave a delighted welcome to the inflow of hot money into the Treasury. Today he has constructed elaborate machinery to prevent any such thing from coming into the country at all. Then he was engaged in a fierce tightening of price control. Yesterday, with a cloud of double-talk, he talked about the need to prevent any unreasonable profit mark-up but at the same time ensuring that the return on capital is allowed to recover sufficiently to reinforce the upturn in investment. If we see anything in all this, it looks as though the Chancellor will certainly be relaxing the price control which he imposed previously. Certainly in 1974 he launched a massive increase in food subsidies. Now we know that he is abolishing them. He doubled the regional employment premium. Now he has abolished it. He froze the price of gas almost alone among the products of the nationalised industries. Now he is gratuitously increasing it.

    We admire the ironic sense of justice of the Prime Minister, that the man he has chosen to carry through this symbolic display of our subservience to the International Monetary Fund is the man who made such a huge fuss about our subjection to the sovereignty to the European Economic Community. I congratulate the right hon. Gentleman on a quite remarkable and unprecedented abandonment of almost every policy on which he and his party arrived in office. Labour's last two election manifestos, certainly the economic parts thereof, have been consigned to the scrap heap.

    Some interesting questions arise. How is it that this conversion has come about? Has the Chancellor been under the influence of the Tribune Group? Or has he been under the influence of the Leader of the House? It seems unlikely. Even so, the whole process of the reeducation of the Labour Party that has taken place must have some value for it. It must be useful for the Tribune Group to learn, as it supports this Budget over the weeks ahead—[HON. MEMBERS: "Where are they?"]. They are conducting their own private meeting in a state of anguish, I dare say. It will nevertheless be useful for the Tribune Group to learn, as it supports this Budget, that neither this Chancellor nor any other can undo the damage done by taxation which has become too high without conferring, as this Budget will, substantial advantage in tax and post-tax terms on many people.

    I hope that the Tribune Group will share our general sense of delight that the Managing Director of British Leyland and the Chairman of the National Enterprise Board will each, as a result of this Budget, be receiving £17·61 per week extra in his pay packet, which is equivalent, as the Chancellor used to say to my noble Friend Lord Barber some years ago, to a gross pay increase for those two distinguished gentlemen of £5,388 a year.

    We should all be encouraged by the fact that the Leader of the House—I am sorry that he is not here—has advanced his educational process so far. We know that the Leader of the House is becoming a man of increasing moral flexibility under the pressures of government. There was a time when he used to proclaim that no man was worth more than £10,000 a year—or whatever it was that he himself then happened to be earning. Now we are delighted that he has agreed to support this Budget, which will award him the equivalent of a pre-tax salary increase of £2,560 a year. Certainly hon. Members opposite are learning, but I doubt very much whether the Tribune Group is the source of inspiration for much of this Budget.

    How about the Liberal Party—[HON. MEMBERS: "Where are they?"]—which is represented by the hon. Member for Cornwall, North (Mr. Pardoe) and is the fragile foundation for the Government's majority? We know that the Chancellor is a very intellectually agile man, although he presides over a Department that is not renowned for the speediest reaction in Whitehall.

    The liaison between the Chancellor and his hon. Friend the Member for Cornwall, North is only seven days old. No doubt the weekly love-in that we are told is to take place between the Chancellor and his hon. Friend will be a deeply therapeutic experience for them both, and Treasury officials who have to sit in on this exhilarating experience will have to take the rough with the rough.

    However, I hardly think that the hon. Gentleman's influence on the Chancellor has yet been as extensive as to product, much influence in this Budget. We shall see in a few moments. I believe that three, different strands of influence can be detected in this Budget. The first is the Prime Minister, because week after week now the Prime Minister has been boning up, the better to instruct his Cabinet colleagues, by reading "The Right Approach" from cover to cover, morning till night, and the influence is beginning to make itself felt.

    Then, of course, the Chancellor has received instruction from the electors of Woolwich, West, of Workington and of Walsall. To reinforce that instruction, the Chancellor has received supervision from Dr. Johannes Witteveen and Mr. Alan Whittome, the Managing Director of the International Monetary Fund and the team leader. It is a remarkable roll of honour—Woolwich, Walsall, Workington, Witteveen and Whittome.

    It will be a happy turn of history if, come tomorrow, the electors of the constituency which elected the Chancellor who had to clear up after the Prime Minister had finished with the Treasury take the opportunity of teaching another lesson to the present Chancellor.

    So we welcome the process of re-education as far as it has gone. We welcome the exemption of charities from the National Insurance surcharge. We welcome the improved relief on overseas earnings, although it still seems a pretty rum way of going about it to begin by identifying the man out there in Acapulco for his contribution to the export efforts, while the man who is sweating his guts out in Derby, Crewe or Rotherham is treated as if he had nothing at all to do with it. It demonstrates the folly of having marginal tax rates that are too high in the first place.

    We welcome the improved investment income surcharge relief. All those paying the investment income relief surcharge are still far worse off than at the time of the Chancellor's first Budget, let alone when the exemption relief was introduced in 1972.

    We welcome the modest movement in tax thresholds that the Chancellor has introduced. However, he has hardly begun to repair the damage he has wrought since he went to the Treasury.

    I want to ask the Chief Secretary a question about tax thresholds. The single man's threshold and the widow's threshold have risen by 9½ per cent. as a result of the Budget. It may well be sensible that we do not have a statement of benefits today at this stage in the Budget debate, but we should like to know just how that movement compares with the prospective movement in the level of benefit. We should like the Chief Secretary to tell us when we shall hear about the increase in benefits.

    In particular, we should like to know because we want to know the effect of the relative movement of benefits and tax thresholds on the situation complained about yesterday by no less a person than the General Secretary of the National Union of Railwaymen, Mr. Sidney Weighell. The Press report said:
    "More than 9,000 British Rail jobs have not been filled because potential recruits earn more on the dole"
    than at work.

    This is a graphic illustration of something that we have all been complaining about. The complaint yesterday was advanced and reinforced not by any of my hon. Friends but by this great trade union leader. We want to know when the Government will announce their intentions about the relative level of benefits and tax thresholds. What would be the effect of this Budget for the poor? When shall we know that?

    We also welcome the recognition by the Chancellor that indirect taxes are a more sensible way in principle in our present circumstances of raising revenue than direct taxes. However, we certainly cannot endorse the wisdom of the choice he has made in deciding that the motorist should carry the burden of heavier indirect taxes. Why, for example, has he not taken the advice we have given him over months and years now to return to the 10 per cent. rate of value added tax, which he should never have abandoned in the first place? It produces the same yield. It does no more harm or good to the retail price index than any other tax. It is much more widely spread and, therefore, does not force the whole attack on to one industry and one activity.

    Does not the Chancellor recognise the importance of the car to many working families in all parts of the country? Perhaps I may remind the right hon. Gentleman of a speech made in the House two years ago in May 1975:
    "In … many … rural areas the car is not a luxury … In large parts of my constituency and probably … other rural areas the car is the only means of getting to work. We must