House Of Commons
Tuesday 6 July 1982
The House met at half-past Two o'clock
Prayers
[MR. SPEAKER in the Chair]
Private Business
Greater London Council (Money) Bill
Order for Third Reading read.
To be read the Third time upon Thursday.
Severn-Trent Water Authority Bill
British Railways (Liverpool Street Station) Bill
Considered; to be read the Third time.
Oral Answers To Questions
Employment
Unemployment Statistics
1.
asked the Secretary of State for Employment what are the numbers of unemployed, both nationally and regionally; and if he will make a statement.
8.
asked the Secretary of State for Employment what are the latest unemployment figures; and if he will make a statement.
At 10 June the number of people registered as unemployed in the United Kingdom was 3,061,229. Regional figures were published in the press notice issued on 22 June; a copy is in the Library.
The total number of unemployed is rising as school leavers come on to the register, but the rate of increase is much slower than a year ago. There are also more vacancies, less short-time working and more overtime than a year ago. Unemployment may be expected to level out and begin to fall in the wake of further improvement in the economy.Has not the Secretary of State a duty to tell the nation when the suffering of the dole queue will end and the unemployment figures will fall? Does he recall that when the Government came to power they said that they would cut taxes for the wealthy and that the figures would fall; that they would increase taxes for the poor and that the figures would fall; and that they would have a monetarist policy and clobber the nurses and that the figures would fall? All that has proved to be of no avail. Is it not time that the right hon. Gentleman came to the Dispatch Box and told us categorically that the unemployment figures will fall before the end of the year? If he cannot do that, he ought to get out.
I thank the hon. Gentleman for putting his question as courteously as usual, although not, if I may say so, with his usual intellectual rigour or normal clear memory. The hon. Gentleman will remember that although the Government that he supported from time to time more than doubled unemployment, he did not ask that sort of question then.
When will the Secretary of State for unemployment make a genuine attempt to reduce unemployment instead of attacking the trade unions through his Draconian legislation? May I advise and inform the right hon. Gentleman that next Monday in Liverpool the Labour movement will fight and begin—
Order. Question Time is for asking questions, not for giving information.
I wish to tell the Secretary of State that we on Merseyside will fight his Bill next Monday—
Order. I have just said that Question Time is not for making statements.
We shall kill his Bill.
Since the end of the war Labour Governments have presided over a loss of almost 1½ million jobs, while to date, under Conservative Governments, there has been a small increase in the number of jobs. The hon. Gentleman should consider the long-term record.
Although competitiveness in British industry has increased by some 10 per cent. over the past year, we are still a third less competitive than in 1975. We still have to make up the ground that was lost largely by the Labour Government, before we can get these matters right.Does my right hon. Friend agree that the stupid strike that the country is suffering at the moment can lead only to increased unemployment? Does he further agree that the action of some union leaders is industrial suicide and will mean only that they are acting against the work force that they are supposed to represent?
I agree with most of what my hon. Friend said, but the leaders are not committing industrial suicide, they are murdering the jobs of their members, and their members will remember it.
Will the Secretary of State confirm that since the general election unemployment has increased by almost two and a half times? Is he aware that the 3 million victims of the Government's policies are becoming sick of his monthly platitudes and hope that he will eventually switch from rhetoric to action? Is he not aware of the CBI's support for the Labour Party's call for massive investment in infrastructure? Will he urge his Cabinet colleagues to generate desperately needed jobs? If not, is it not time that he got on his bike and looked for another job?
The right hon. Gentleman lowers his standards when he refers to the Government being responsible for 3 million unemployed, because he left us with more than 1¼ million of those. Therefore, he had better get the facts right. I again remind him that we inherited not only a doubling of unemployment but a doubling of prices and a massive loss of competitiveness in the middle of a world recession. Britain is not the only country that is affected. For example, in Germany unemployment has increased by 50 per cent. in the past 12 months compared with 14 per cent. here. Vacancies there have halved, while vacancies in Britain have increased.
rose—
Order. This subject comes up repeatedly in later questions.
Young Workers (Training)
2.
asked the Secretary of State for Employment if he is satisfied with the quality of training available to implement his statement of 21 June on training of young workers.
I am satisfied that the support that our training proposals have received from employers, unions and others, and the arrangements for quality assurance proposed by the Manpower Services Commission, will ensure the success of the new scheme.
What discussions has my hon. Friend had with the MSC and similar bodies with regard to the monitoring of the quality of these schemes? Is there any likelihood of any certification or similar proposal at the end of the young person's period of training?
We are closely in touch with the MSC on the monitoring of the schemes. It intends to set up a national supervisory board and local area boards to supervise the schemes, and those boards will include industrialists acting as advisers. The intention is that there should be a certificate at the end of the year.
Does the Minister realise that all our young people now feel that the training that ought to be given is how to enter the dole queue, because that is where the vast majority of them end up? Is that not the reality? What will the Minister do to prevent those young people from going on to the scrap-heap and the dole?
The hon Gentleman is probably not aware that in the last survey more than 70 per cent. of the young people on the youth opportunities programme said that they were very satisfied with the programme. With the increased training element in the youth training scheme, I am sure that that figure will increase substantially.
Will my hon. Friend congratulate employers, particularly the CBI, on the determination and spirit that they have shown in an effort to get the new training initiative off the ground? Does that not compare favourably with the carping and negative attitude of the TUC and Labour Members in their approach to this whole question and with their failure to introduce such a scheme when they had the chance?
I certainly take this opportunity of congratulating employers, not least because they will be the sponsors of the 400,000-plus places that will be needed in September next year. I agree with my hon. Friend that certain Labour Members seem to be out of step with what the rest of the country thinks of this scheme.
It was the TUC which in effect, saved the scheme and gave it the chance to exist. Will the Minister accede to the request of the MSC's task group and merge the young workers scheme with the new training scheme? Is he not apprehensive that £260 million has been earmarked by his Department for the young workers scheme, with no guarantee of any training?
The short answer to the hon. Gentleman's question is "No". The young workers scheme fulfils a different purpose from the youth training scheme, and I believe that each can work alongside the other.
Youth Opportunities Programme
3.
asked the Secretary of State for Employment how many young people entered the youth opportunities programme in 1981–82.
The number is 553,000.
I thank my hon. and learned Friend for that reply. How successful is YOP in getting young people into employment?
A survey carried out last autumn showed that about 60 per cent. of trainees went either into jobs or further training at the end of their period on YOP. Further improvements seem to be indicated by another survey, which is now being analysed.
Is the Minister aware that recently in a written answer I was supplied with details of the number of injuries sustained by young people on YOP in the last year? What assurance can he give that the health and safety aspects both of YOP, if it continues, and the new training initiative, when it begins, will be improved so that we do not have a doubling of the length of the programme leading to a doubling of the number of injuries?
We are determined to ensure that safety standards are as high for trainees as they are for ordinary employees. There is no reason why they should not be.
Was there any evidence of many young people wilfully choosing not to go on to the YOP if an offer was made to them?
I know of virtually no evidence of that happening.
Does the hon. and learned Gentleman recognise that at the end of these schemes many young people find that there are no opportunities for them to take up, as a result of which they merely become unemployed and completely disillusioned? Does he appreciate that until the Government change their attitude to the economy and embark on a policy of reflation to give more jobs for all, this process will be only a palliative and will not succeed?
I remind the hon. Gentleman of what I have already said. We should like to see every young person go into a permanent job at the end of his training. It seems that the number going into permanent jobs is increasing, and that is a good sign. I disagree entirely with the hon. Gentleman's suggestion about how we might increase employment opportunities. His method would have precisely the reverse effect.
Unemployment Statistics
4.
asked the Secretary of State for Employment what are the percentages of unemployed in the United Kingdom and in the West Midlands at the latest date and in May 1979.
At June 1982 the rate of unemployment, seasonally adjusted and excluding school leavers, was 12·2 per cent. in the United Kingdom and 14·7 per cent. in the West Midlands region. The corresponding rates at May 1979 were 5·4 per cent. and 5·1 per cent. respectively.
That is a grave indictment of Government policy. Will the Minister take note that, set against the tragedy of millions of our fellow citizens being denied the opportunity to earn their living, the usual jeering remarks of the Secretary of State are a grave insult to the unemployed? Will he also bear in mind that there has been no let-up in the factory closures and massive redundancies that constantly occur in the West Midlands? The people there have paid a dear price for the Tory electoral victory of May 1979.
"To an extent, present unemployment is international"—
We are talking about ours.
I repeat:
The words that I have just quoted come from the report on unemployment by the Select Committee in another place, signed by Lord Lee, Lord McCarthy and Lord Melchett."To an extent, present unemployment is international and beyond the control of the United Kingdom Government; record levels are being registered in most industrialised countries."
Is my right hon. Friend aware that many people in my constituency believe that jobs have been lost in the Kidderminster carpet industry because selective help has been given to firms in other parts of the country, with which it competes? Will he discuss that with colleagues and ensure that such discrimination does not continue?
I take note of what my hon. Friend has said and undertake to look into the matter.
Where else in the world has unemployment in an industrial area increased as much as in North Staffordshire in particular, and the West Midlands in general?
As the hon. Gentleman knows only too well, a sad loss of competitiveness was registered as a result—[HON. MEMBERS: "Where?"]—of our appallingly poor performance in terms of output and unit labour costs in manufacturing industry, which are unmatched anywhere else in the Western world. That explains why we have such high unemployment.
Is my right hon. Friend aware that there is deep distress in the West Midlands and that until that area recovers properly the economy as a whole is in dire danger? Does he accept that many of us believe that there is a great deal to be said for a Minister with special responsibility for this area, just as my right hon. Friend the Secretary of State for the Environment was given special responsibility for Liverpool?
I note both what my right hon. Friend has said and his strong constituency links and roots in the West Midlands. He will appreciate that the level of manufacturing activity in the West Midlands is much higher than the average for the United Kingdom. That leaves the West Midlands more exposed to the cold wind of recession than any other part of the United Kingdom.
Long-Term Unemployment
5.
asked the Secretary of State for Employment what is the number of long-term unemployed at the latest available date.
At 15 April the number of people registered as unemployed for over 52 weeks in the United Kingdom was 994,395.
Is that not the highest-ever figure of people who have been unemployed for more than 12 months? Does the Secretary of State agree that the number of long-term unemployed is one of the most significant indicators to the state of the economy? Is he aware that the MSC has forecast that that number will be over 1 million for the next three years? How much evidence do he and the Government require to make fundamental changes in their policies?
We should require evidence that better policies were available, and that evidence is in extremely short supply. If the hon. Gentleman does not believe me, I suggest that he takes a short trip to France to see what has already resulted from the implementation of policies similar to those advocated by the Labour Party and the SDP. Fortunately, that Government have now seen some of the difficulties and their policies are converging with ours.
As to long-term unemployment, I hope that the hon. Member will use all his influence with his friends to persuade them to support the scheme being discussed within the MSC for expansion of help for about 100,000—[Interruption.] When hon. Members shout and interrupt they only cut other hon. Members out of Question Time. They should persuade their friends to support the scheme designed to help another 100,000 of the long-term unemployed back into jobs.Does the Secretary of State agree that unemployment and the long-term unemployed are the major issues now facing the country? Therefore, is it not important that we should debate these matters fully in the House? If so, does he agree that it is deplorable that during the debate on unemployment last night only six hon. Members were ever in attendance on the Labour Benches, and that none of the Labour Members voted in the Division last night?
That is probably accounted for by the fact that they had not expected to hear anything new—
From the Government Front Bench?
—from the party that proposed the debate or from those who spoke from the Liberal and SDP Benches.
The problem of the long-term unemployed is a major one. That is why the Chancellor offered to make available an extra £150 million to help ease that problem, and that is why we have to regain competitiveness to win back lost markets, not least at home.Is my right hon. Friend aware that, after being unemployed for some time, many people wish to take on work within the community, often without pay? However, they are inhibited from doing so by fear of losing benefit. Will my right hon. Friend undertake to review the regulations so that those who genuinely want to help the community while seeking work will be more freely able to do so?
That was one of the principal objectives of the scheme put forward by my right hon. and learned Friend the Chancellor of the Exchequer. We are always anxious to do that, but we are sometimes frustrated by those who believe, rightly or wrongly, that it would damage voluntary institutions, and others who believe that it will lead to widespread undercutting of regular wages. Both those beliefs are misconceived.
Is the right hon. Gentleman aware that unemployment in France is much lower than it is in the United Kingdom and has stabilised, whereas here, since the Conservative Party came to power, long-term unemployment has risen by two and a half times? Is it not time that the Government increased the community enterprise programme, which accounts for only 30,000 places, when the long-term unemployed number 1 million?
Inflation in France is 14 per cent., it has just devalued its currency for the second time, it has a massive problem of a balance of payments deficit, and it is imposing freezes on prices and incomes. I do not think that its Government can be said to be holding to the policies on which they were elected, policies that are similar to those of the hon. Gentleman and his party.
Flexible Retirement
6.
asked the Secretary of State for Employment if he has made any assessment of the extent to which flexible retirement for men between the ages of 60 and 65 years would provide job opportunities for younger people.
A recent survey of the job release scheme, which allows people nearing retirement age to give up work early provided that their employer undertakes to recruit an unemployed person as a replacement worker, showed that 40 per cent. of replacement workers are aged under 25.
That is an encouraging start, but is my right hon. Friend aware that over 900,000 men at work are aged between 60 and 65, and that more of them would be willing to take earlier retirement—
Speak for yourself.
—if the State pension scheme could be made fully flexible?
I heard my hon. Friend, but he will agree with me that the conditions of the job release scheme are perhaps the most effective way to get people into work.
Does the Minister agree that the most effective way of getting people back to work would be to allow men to retire at 60 if they wished, allowing some of those thousands of people out of work and desperate for those jobs to get them? Is it not a ludicrous paradox that in constituencies such as mine there are hundreds of men desperate for dignified retirement, while there are thousands of young people in desperate need of those jobs?
As the hon. and learned Gentleman is no doubt aware, if the retirement age for men were reduced to 60 it would result in about another 420,000 jobs, but it would cost £2,500 million, and the Government must have regard to resources.
Merseyside
7.
asked the Secretary of State for Employment if he will meet the officers and board of the Merseyside urban development corporation to discuss measures to reduce unemployment on Merseyside.
Although my right hon. Friend has no plans at present to meet the Merseyside development corporation he would be most interested to discuss with it how this major initiative can contribute towards making Merseyside more attractive to industry and employment.
Will the Minister consider three specific proposals when he meets the Merseyside development corporation, bearing in mind that my constituency has 16 per cent. more unemployed now than at this time last year? First, will he consider giving it urban aid powers to give grants in the same way as local authorities? Secondly, will he consider extending the area covered by the Merseyside development corporation, especially in my constituency? Finally, will he consider with it giving development area grants in Merseyside to service industries and commercial concerns related to the docks, as well as to manufacturing industries?
The hon. Gentleman will appreciate that these are matters far more in the responsibility of my right hon. Friend the Secretary of State for the Environment, but I shall study the points that he has made. I should not like it to be thought that the Merseyside development corporation was not already doing some very important things in the hon. Gentleman's constituency. I have in mind the 45,000 sq ft of advance factory units already put up and the reclamation of 27 acres at Langton goods depot and the Rimrose improvement area.
Is the hon. and learned Gentleman aware that many of these factory units are empty and that, however desirable trees and shrubs may be, they are no substitute for the 89,000 jobs that have been lost in Liverpool over the past 10 years, where there has been a 200 per cent. increase in unemployment? Is he further aware that the city planning officer estimates that in four years' time a further 30,000 people could become unemployed in Liverpool? What will he do about that? Is the hon. and learned Gentleman aware that youngsters on Merseyside—
Order. That is more than enough.
The hon. Gentleman is aware that there is no part of the United Kingdom where more Government incentives are available than in Merseyside. There is the Merseyside development corporation, which has already been referred to. There is the special development area, the Speke enterprise zone, the Liverpool inner city partnership area and my right hon. Friend's task force. Abundant aid is being made available, and Liverpool and Merseyside will benefit with the revival of the economy, as will other parts of the country.
Further to the question of my hon. Friend the Member for Lincoln (Mr. Carlisle), is my hon. and learned Friend aware of the plight of the disabled and handicapped who are trying to get work? Will he ask the Treasury to revise the rules for people, especially those who have multiple sclerosis, who are trying to work and who are in danger of losing their invalidity benefit because there is no scaling down for people who suffer from this disease and who wish to take part-time work?
I should point out to my hon. Friend that the question is about the Merseyside urban development corporation. I shall, of course, note all that he says and do what I can.
Does the Minister agree that the Mickey Mouse gimmicks introduced by his right hon. Friend the Minister responsible for Merseyside, like the development corporation and the enterprise zone there, will in fact produce few jobs? Will he have a word with his right hon. Friend to see whether he will introduce measures that will make a positive attempt to reduce the 20 per cent. unemployment on Merseyside?
It is difficult to follow what the hon. Member for Liverpool, Scotland Exchange (Mr. Parry) is saying. I thought that most Opposition Members believed in assistance for the regions, and if one looks at the area one sees that it is getting more of that assistance than anywhere else.
Wages Council Awards (Survey)
9.
asked the Secretary of State for Employment if he will commission a survey to investigate whether, and to what extent, employers are inhibited from recruiting new employees by reason of the level of wages council awards.
It is self-evident that wages are ultimately limited by the ability of employers to pay, which is in turn limited by the prices which, in the light of home and overseas competition, they are able to obtain for their products. There is, therefore, little doubt that the higher the level at which councils set minimum wages the fewer people will be employed, but I am doubtful that a survey could readily quantify this effect.
I thank my right hon. Friend for that encouraging reply. Does he agree that the weekend speech by my right hon. and learned Friend the Chancellor of the Exchequer in which he referred to the Conservative manifesto commitment to abolish wages councils, will be warmly welcomed by both unemployed people and trade union members alike—[Interruption]—because of the interference by wages councils, which has resulted in the loss of thousands of jobs in the private sector?
Let us be quite clear about what my right hon. and learned Friend the Chancellor said. He asked: is there really a case for wages councils imposing minimum rates that frustrate market forces? In my opinion, any reasonably minded man must come to the same conclusion as my right hon. and learned Friend. To put it mildly, the answer to the question would appear to be "No".
Does the Secretary of State accept that, of all the methods for reducing unemployment, the most offensive and despicable would be to cut the wages of those who are already receiving the lowest wages in our society?
Scrooge.
I am sure that the right hon. Gentleman understands that no job can exist for long if what it produces is less than what the market is willing to pay for the product. That is the problem of wages councils, when they set wages above what the market will bear.
Does my right hon. Friend agree that our main priority should be the preservation and creation of jobs? If, as many of us believe, wages councils destroy jobs, should we not take prompt action, regardless of the International Labour Organisation? Does my right hon. Friend agree that this is a case for turning a Nelsonian blind eye to that body, in the interests of unemployed people, and especially the young unemployed?
On a point of order, Mr. Speaker. May I draw your attention to the fact that Conservative Members who are asking questions have a vested interest—
Order.
The hon. Member for Bridlington (Mr. Townend) runs a sweat shop.
Opposition Members could not run a sweet shop—I do not know about a sweat shop.
The British Government do not lightly turn aside from treaty commitments. We are bound by the treaty into which we have entered, and we should comply with its provisions.On the subject of the Minister's theory of job creation by lower wages, has the Secretary of State seen the report issued by his own Department, showing that variations in youth unemployment have little systematic relationship with changes in earnings? Are the Department of Employment Ministers frightened of being confused by the facts?
No, not at all. That is not the central point at issue. The central point of that survey was the relationship between youth wages and adult wages. Here we are talking about the overall level of wages. Unless someone has repealed the law of supply and demand, I am afraid that the hon. Gentleman has to accept that the higher the price that is asked for labour, the less labour will be employed.
Northern Region
10.
asked the Secretary of State for Employment what are the current numbers and percentage of unemployed persons in the Northern region.
At 10 June the number of people registered as unemployed in the Northern region was 223,010 and the unemployment rate was 16·7 per cent.
Is the Minister aware that, serious as those figures are, male unemployment in my constituency is now 33·3 per cent. and rising? How does that, together with the regional figures that he has just given, reflect the alleged improvement in the national economy about which the Government keep telling us?
I fully appreciate the serious situation in Consett, but I think that Labour Members know that even there people are getting jobs. Indeed, 2,300 former BSC employees have found jobs or gone into training since the plant was closed. That is no mean achievement. Consett remains a special development area. Forty-five new small firms have been established since the steel closure. Other firms in the Consett travel-to-work area have expanded, creating 300 new jobs. So it is quite wrong to say that the situation is hopeless. Consett is recovering from a traumatic and terrible experience.
Does the Minister agree that the three new towns in the Northern region have made a significant contribution in attracting new jobs to the North? In those circumstances, what possible justification can there be for the Secretary of State for the Environment—I realise that this is not the Minister's Department—winding up those three development corporations at the end of 1985? Will he undertake to make the strongest representations to his right hon. Friend to extend the life of those corporations for as long as there is a job need?
I shall, of course, pass on the hon. Gentleman's comments to my right hon. Friend. However, I do not want the House to imagine from what the hon. Gentleman said that no aid is going to the Northern region. Far from it. Only the other day the hon. Gentleman heard that Teesside was to become a special development area.
Apprenticeship Reform
11.
asked the Secretary of State for Employment if he has received representations on the need for reform of the traditional apprentice schemes.
Consultations on the new training initiative have shown widespread agreement that traditional approaches to the skill training of young people need to be modernised. The Government have declared their support for the removal of both the time-serving and the age barriers in the apprenticeship system.
I thank my hon. Friend for that reply. Does he agree that we need to move away from narrowly defined craft-based apprenticeship schemes towards a system that is capable of producing multi-skilled technicians who are more relevant to modern technology? Does he agree that that would help immensely to improve productivity in British industry, by helping to break down demarcation barriers?
The short answer to my hon. Friend is "Yes". We should have a much more flexible approach to skill training in this country. The objectives in the new training initiative, with which the Government agree, are designed to that end.
How much responsibility will industry take for the new training initiative? What proportion of that training does the Minister expect to take place in private industry and what proportion does he expect to have to dump on the further education system because employers are not playing their part?
At this stage the response from industry is very encouraging indeed. To give proportions would be impossible, because we are talking about a scheme that will be launched in full in September next year. Certainly industry is playing its part at the moment.
General Employment Service (Rayner Review)
12.
asked the Secretary of State for Employment what arrangements have been made for the process of consultation on the report of the employment services division Rayner scrutiny on the general employment service in Great Britain.
The report was published on 3 June 1982 by the Manpower Services Commission with an invitation to interested organisations and individuals to comment on its conclusions and recommendations by 9 July 1982.
Why has there been such a hole-in-corner approach to the publication of this document, which has such damaging prospects for the jobcentre network?
Does the Minister subscribe to the implicit view of the authors that it is not worth bothering about the placement in employment of unskilled and semi-skilled workers in future and that they should be left to their own devices?There has not been a hole-in-corner approach to the publication of the document. The Manpower Services Commission has made it available to whomsoever wanted it. It has been available in the Vote Office and has been given to the Clerk of the Select Committee on Employment. The matter rests at the moment with the Manpower Services Commission and the Government await its conclusions before making their judgment.
As the report makes recommendations which, if implemented, would lead to savings of more than £10 million, will my hon. Friend ensure that in so far as he agrees with them they are implemented as soon as possible?
I certainly wish to see the jobcentre network run in as cost-effective a way as is possible. That is why my right hon. Friend the Member for Lowestoft (Mr. Prior), when he was Secretary of State for Employment, suggested the review to the Manpower Services Commission.
Is the Minister not ashamed that the MSC's employment services division has already sustained a staff cut of 1,700 and a budgetary cut of £60 million? Is it not the case that the disabled, the long-term unemployed and the young blacks will bear the brunt of cuts in jobcentres?
I am certainly not ashamed. I should be ashamed if the jobcentres were not run on a cost-effective basis. The point of the review is to ensure that they are.
Is my hon. Friend aware that, generally speaking, private enterprise can run an employment agency far more efficiently and at far lower cost than a State undertaking? The sooner they are all taken over by private enterprise the better.
There is a place for the private employment agency alongside the public employment service, which should be run on as cost-effective a basis as possible.
Long-Term Unemployment
13.
asked the Secretary of State for Employment how many long-term unemployed are registered at East Ham; and what was the comparable figure 12 months ago.
At April 1982 the number of people registered as unemployed for over 52 weeks in the East Ham employment office area was 1,308. The corresponding figure at April 1981 was 491.
Does the Minister recognise that those atrocious figures show an increase in the long-term unemployed over 12 months of well over 100 per cent.? Was that the Government's intention, or is it an indictment of their policies? Does the Minister realise the despair and social tension that such figures cause? What hope can he hold out to those of my constituents who are afflicted by such problems?
One thousand and seventy-three people have been placed in employment by the employment service in the past 12 months. Vacancies are well up compared with a year ago. It is wrong to paint a completely gloomy picture. East Ham and the hon. Gentleman's constituency will, like other parts of Britain, benefit as the Government's policies begin to work out.
Unemployment Statistics
14.
asked the Secretary of State for Employment if he will make a statement on the latest unemployment figures.
I refer the hon. Gentleman to my reply to the hon. Members for Bolsover (Mr. Skinner) and Liverpool, Scotland Exchange (Mr. Parry) earlier today.
Are not those deplorable figures brought about by the deliberate policies of the Government? Is the Secretary of State aware that under Tory rule—nothing to do with the Labour Government—there has been an increase in unemployment in my constituency of almost 200 per cent. and a similar increase in supplementary benefit payments to the unemployed? Is it not madness to cut back on public expenditure and create unemployment that results in over £4 billion being spent each year on supplementary and unemployment benefit? Would it not be better to use that money to create the jobs that the Government promised at the last election than to have their training scheme cosmetics?
In turn, the question might be put to the hon. Gentleman—[Interruption.] The House will notice that I did not ask a question of the hon. Gentleman. I said that, in turn, the question might be put to the hon. Gentleman—[Interruption]—whether he took the view that the increased unemployment in his constituency while he was a Minister in the last Government was his responsibility. The fact of the matter is—[Interruption.]
Order. The Minister must be allowed to reply. Whether hon. Members like the answer or not, he must be allowed to give it.
On a point of order, Mr. Speaker. May I refer you to your comment that the Minister is entitled to make a reply? The right hon. Gentleman said that he was going to ask the hon. Gentleman a question.
Order. I am much obliged to the hon. Gentleman, but we are taking time from Prime Minister's Questions. The Minister must be allowed to answer.
The hon. Member for Newham, North-West (Mr. Lewis) did not hear me. I did not ask a question.
Under the last Government, Britain's competitiveness suffered massively. We lost about 50 per cent. of competitiveness. In the past year we have regained about 10 or 15 per cent. of our competitiveness. That must continue in order to regain the jobs that the Labour Government exported to our rivals overseas.
On a point of order, Mr. Speaker. In view of the totally inadequate nature of the Secretary of State's reply, I give notice that I intend to raise this matter on the Adjournment. The people of Keighley would like to return to the level of unemployment that existed under the Labour Government.
Prime Minister
Engagements
Q1.
asked the Prime Minister if she will list her official engagements for Tuesday 6 July.
This morning I had meetings with ministerial colleagues and others, including one with Sir Anthony Parsons. In addition to my duties in the House, I shall be having further meetings later today. This evening I hope to have an audience of Her Majesty the Queen.
I suspect that during my right hon. Friend's busy day she might have occasion to consider the implications of the strike action being undertaken by some train drivers. Can she confirm that, given the acceptance by the work force of the necessity of operating the railways in the most efficient way possible for the benefit of the consumer, the Government would wish to continue their financial support for the railways and see the new investment that could give Britain the railway system of which it could be proud?
I agree with my hon. Friend that we very much want a railway system of which we can be proud.
There is already considerable investment in British Rail—about £3 billion since 1976 and about £350 million last year. However, if investment is to continue on anything like that scale we must be sure that it will secure a proper return. Therefore, we must have excellent productivity practices and not be dependent upon those that were agreed in 1919. There will then be greater hopes for an efficient railway. Where the Government request British Rail to run specific services that would not otherwise be commercial, they expect to meet the cost with a special operating grant.We have always urged, and will continue to urge, that there should be increased investment in British Rail. As the present crisis is undoubtedly causing great hardship and difficulty to all concerned, could not a settlement of the dispute be sought on the basis of the proposals that the British Railways Board put forward on 25 June?
Investment itself is not necessarily good. It must be productive investment. Unproductive investment merely takes away from investment that could otherwise be made and produce a better return. The board has made every effort to solve the dispute. It is quite right to insist on the introduction of flexible rostering and to insist that there cannot be any more money without greater efficiency.
Will the right hon. Lady answer my question? It is important, because the railways will suffer losses as a result of the strike. Does she favour a settlement on the basis of the proposals made on 25 June? Having put forward those proposals, why did the British Railways Board withdraw them last week? Will the right hon. Lady consider the matter and try to secure a proper settlement?
ASLEF went on strike. The handling of that stike must be left to the British Railways Board. It cannot be handled in the House or at No. 10 Downing Street. However, we can lay down the very important principle that it is totally wrong to try—as the Labour Party has frequently done—to encourage the unions to believe that there will always be more money without more efficiency and better working methods.
We want to overcome this crisis. Will the right hon. Lady say whether she supports the board's proposals, which have now been withdrawn?
I leave the negotiations—rightly—to the British Railways Board. The Government have stood behind the British Railways Board in its negotiations.
Did my right hon. Friend hear Mr. Ray Buckton this morning when he explained to Radio 4 listeners that we live in a democratic country? Is it not about time that he introduced a little democracy into his union and consulted his members about this damaging dispute?
I understand that a number of ASLEF members have made precisely the same point. A considerable number of them are now working because they attach more importance to serving the travelling public—which is quite right—than to insisting on increased pay without improved working practices.
Falkland Islands
Q2.
asked the Prime Minister when she intends the inquiry relating to the Falkland Islands to report.
The inquiry must be given whatever time it needs to complete its review, but I hope that it will be able to report within six months, and sooner if possible.
Will the Prime Minister therefore confirm that she has categorically ruled out an October general election, because she realises that before any electoral contest the House and the country should be given the full facts about the causes of the Falklands crisis and about the Government's responsibility for it?
I should be utterly amazed if there were an October election.
Is my right hon. Friend aware that an extremely happy event will take place at 11 am this Sunday when "Canberra" returns home with 3,000 of our fighting men on board? If possible, will she send a message to the ship's captain and perhaps accompany me to the quay at Southampton to welcome the ship back?
I am sure that everyone is extremely grateful for the excellent services provided by the whole of the Merchant Marine during the Falkland Islands crisis. We should like especially to congratulate the captain and crew of "Canberra" on having performed such a wonderful service on behalf of our country.
Might I welcome the Prime Minister—[Interruption.]—to the ranks of those who wish to get rid of the 30-year rule of secrecy for Cabinet documents?
Is she aware that compared with her attitude to the Bingham report—which would have exposed some of capitalism's shortcomings—her change of heart is very welcome? Will she extend her strictures on the 30-year rule.I happen to be very much in favour of the 30-year rule against the publication of Cabinet documents. That is quite a different matter from revealing Cabinet documents, and Cabinet Committee documents, to Privy Councillors for an inquiry that wishes to draw its own conclusions. However, that does not mean that the documents can be published.
Engagements
Q3.
asked the Prime Minister if she will list her official engagements for 6 July.
I refer the hon. Gentleman to the reply that I gave some moments ago.
Does the Prime Minister recall the answer that she gave on 9 February to my right hon. Friend the Member for Cardiff, South-East (Mr. Callaghan), when he warned her of the serious error of paying off HMS "Endurance" and of the consequences of such action? I believe that it was to be sold for about £3 million. Events in the South Atlantic have, I understand, cost rather more than £3 million. What has been the cost of the killing and maiming? As the Foreign Secretary honourably resigned, is it not time for her to accept, in grace and humility, her share of responsibility and culpability?
HMS "Endurance" was between the Falkland Islands and South Georgia at the time of the invasion. It was there throughout the invasion of the Falkland Islands. The ship has only two 20 mm guns and two Wasp helicopters.
During the course of the day will my right hon. Friend find time to consider the proposed increase in charges that has been announced by British Telecom? It seems to illustrate the insensitivity of the nationalised industries, which pile more and more charges on private industry and individuals.
I entirely agree with the point underlying my hon. Friend's question. We need much greater efficiency from British Telecom and from every other industry. We need to reduce overmanning and restrictive practices. However, much money is being invested in new equipment for British Telecom. Over the year British Telecom's profits are about £450 million, which is only about one-quarter of the amount that we are investing in British Telecom. We trust that that new investment will be used efficiently.
rose—
Hear, hear.
On the Falkland Islands inquiry—[Interruption]—will—
Order. It is very unfair if a right hon. or hon. Member is not allowed to put his question. If the House stands for anything, it stands for freedom of speech.
Can the Prime Minister confirm that the inquiry's terms of reference will not now involve any leisurely ramble over the history of the past two decades, but will concentrate on immediate events, although possibly with a right to look back for the purposes of comparison and clarification?
By kind permission of Mr. Speaker, the answer to a written question from the Leader of the Opposition was published at 2.45 pm today, setting out the terms of reference of the proposed inquiry in the following terms:
I am also glad to announce—as is stated in that reply—that Lord Franks has agreed to be chairman of the committee."To review the way in which the responsibilities of Government in relation to the Falkland Islands and their dependencies were discharged in the period leading up to the Argentine invasion of the Falkland Islands on 2 April 1982, taking account of all such factors in previous years as are relevant; and to report."
Falkland Islands
Q4
asked the Prime Minister if, pursuant to her reply on 18 June, Official Report, column 353, she is now in a position to announce the result of her consideration of a suitable form of commemoration for the recovery of the Falkland Islands and their dependencies for the British Crown.
As I said in the House on 1 July, a service of thanksgiving and remembrance for those who fell in the campaign will be held in St. Paul's cathedral on Monday 26 July at 11 am. Her Majesty the Queen, together with other members of the Royal Family, will attend. The next-of-kin of those who died will be invited, together with representatives of the Services, Merchant Navy and other direct participants in the conflict. Representatives of those involved in the support of the Falklands operation from Britain will also be invited. Seats will be available for the public and they will be allocated by ballot.
While thanking my right hon. Friend for making those proper and traditional arrangements to commemorate our victory in the Falkland Islands, may I ask whether she will also ensure that our victorious Service men have an opportunity to parade through our capital city?
We have not yet made arrangements for such a parade. It is likely that there will be one in the autumn. In addition to the Government, the lord mayor of the City of London is considering the matter, so that we may provide some entertainment.
On a point of order, Mr. Speaker. I do not dispute your decision to release the terms of reference of the Falkland Islands inquiry exceptionally at 2.45 pm. Many hon. Members who have questions down for written answer for a specific day would wish the terms of the answers to those questions to be available so that they might put supplementary questions to Ministers in the House. Are you aware, Mr. Speaker, that it is not right that the Government, at their caprice and whim, should be allowed to switch the traditional time for answering questions tabled for written answer simply for their political convenience?
I understand that this was the wish of both the Leader of the House and the Prime Minister and that it meets the wishes of the House. [HON. MEMBERS: "No".] The House has had information that it would not otherwise have received because it could not have been revealed until later. Secondly, I am following precedent; it has been done before. I did not create the precedent and, as the hon. Gentleman knows, from time to time, in the interests of the House, we find the appropriate precedent to follow.
On a point of order, Mr. Speaker. As Prime Minister's Question Time started two or three minutes late, why should the Prime Minister be defended by not allowing it to run for 15 minutes rather than terminating it after 12 minutes?
When the hon. Gentleman is appointed Speaker, he can put that point of view, but in the meantime the House has asked me to accept that responsibility.
On a point of order, Mr. Speaker. As there is some dispute about the flexible rostering of the business of the House, may we have a secret ballot on it?
Business Of The House
3.33 pm
With permission, Mr. Speaker, I wish to make a short business statement.
The business on Thursday 8 July will now be as follows: Until about 7 o'clock, debate on a Government motion on the decision to appoint a committee to review matters leading up to the Argentine invasion of the Falkland Islands. Afterwards, Supply day debate on the Army, on a motion for the Adjournment of the House.rose—
Order. I shall call a few hon. Members to put questions, but this is a brief statement about a debate being available to us on Thursday.
Will the Supply day debate run until 10 o'clock or midnight?
The motion that will govern the day's business will enable the Supply day debate to run long enough to make up for the time that will have been for-gone.
In the interests of those of us who are not Privy Councillors, and reflecting what happened on Saturday 3 April when a truncated debate in the House led to a reflection of opinion that may not have been the true opinion of the entire House at the time, is it satisfactory that such a crucial debate should be limited to three hours?
If it is limited to three hours, will the Prime Minister outline the events that led to the firing of torpedoes on the "General Belgrano" and tell us especially whether Admiral Sir John Fieldhouse consulted her before giving the order to fire?Order. Those questions can be raised during the debate on Thursday.
May the House debate the terms of reference and amend them?
The motion will be amendable.
Will the Government announce the full membership of the inquiry committee before the debate or simply in the opening speech of the debate?
I cannot anticipate the contents of my right hon. Friend's opening speech, but doubtless she will have heard the hon. Gentleman's point.
rose—
Order. I propose to call the four hon. Members who have been trying to catch my eye.
Will the motion include South Georgia as well as the Falkland Islands? I believe that Argentina invaded South Georgia first.
I am sure that the debate will be sufficiently elastic to cover the point that worries the hon. Gentleman.
Although the Leader of the House cannot anticipate the Prime Minister's opening speech, will he ensure that she explains to the House the constitutional point raised by the right hon. Member for Sidcup (Mr. Heath), because she appears to be saying to the nation that she has the right, without asking permission, to examine the papers of previous Administrations?
I am sure that that matter will be fully and adequately covered.
Further to the matter raised by my hon. Friend the Member for Lewisham, West (Mr. Price), will the Prime Minister ensure that the names of the other members of the committee are made available before the debate and not in her introductory speech?
I cannot go beyond the answer that I have already given.
Will the Leader of the House make it clear whether the inquiry will be set up by a motion of the House or whether it will be an inquiry appointed by the Government on which the House is invited to make observations?
The House will be invited to approve the inquiry.
On a point of order, Mr. Speaker. Would I be right in thinking that the time for Back-Bench Members' contributions to the debate on the Falkland Islands inquiry will be limited to one and a quarter hours or, at most, one and a half hours, because there will be four major Front Bench speeches? Do you, as Speaker of the House, believe that it is satisfactory that Back-Bench Members' contributions should be limited to that extent?
I do not decide the timing of the debate.
On a point of order, Mr. Speaker.
Order. Points of order simply take time from the major debate in which many hon. Members, including the hon. Member for Dunfermline (Mr. Douglas), will hope to catch my eye.
It was not my intention unduly to take up the time of the House, Mr. Speaker. The name of the head of the Falkland Islands inquiry has been widely leaked to the press. May we have an assurance that information about the other members of the committee of inquiry will not be leaked to the press but will be given to the House?
That is not a point of order.
European Community Documents
Ordered,
That European Community Document No. 7298/80, concerning Energy Labelling, be referred to a Standing Committee on European Community Documents.—[Mr. David Hunt.]
Statutory Instruments, &C
Ordered,
That the draft Commonwealth Agricultural Bureaux (Immunities and Privileges) Order 1982 be referred to a Standing Committee on Statutory Instruments, &c.—[Mr. David Hunt.]
Disablement (Prohibition Of Unjustifiable Discrimination)
3.40 pm
I beg to move,
The basic issue of the Bill is one of human rights because too many disabled people are suffering from a denial of those rights. They are being burdened with the dual handicap of their disability and of completely unjustified discrimination. Examples of such discrimination abound. It must be hard for a disabled person to be told that people like him should stay at home; that he is to be sacked because his work mates will not work with a disabled person; that teachers will not teach him because he is disabled; or that employers will not interview him as he has a disability, although the disability is irrelevant to that job. Sometimes the discrimination is bizarre or downright silly. For example, a draughtsman with an artificial leg was offered a job, but the offer was withdrawn when his disability was discovered. Therefore, I can presume only that the employer thought that he drew with his feet. A Butlin's holiday camp refused to accommodate disabled people in the summer but said that it would accept them in the spring or autumn. The people there said that they could not accommodate them because of the hills in the area, so I presume that those hills disappeared during the spring and autumn. Those examples are taken from the report of the Committee on Restrictions Against Disabled People, called CORAD, under the chairmanship of Peter Large. The committee was in no doubt that the evidence of discrimination that it received was the tip of the iceberg. After studying the problem for three years it felt that discrimination against disabled people was just as extensive as discrimination on the grounds of race and sex. So the question I want to put is: how should the House try to deal with the unnecessary burden of discrimination placed on disabled people? CORAD was in no doubt that discrimination should be made illegal and that there should be legislation. I am convinced that that is the most realistic and effective solution to the problem. I am not suggesting that legislation is the only method. Of course, it is not. There is room for education and for persuasion, which have an important role to play. However, we need something stronger. What we require is strong legislation. The Bill, which follows the recommendations of CORAD, would make illegal unjustified discrimination on the ground of disability. It would cover all areas where discrimination occurs, including employment, education, transport and the provision of goods and services. There would have to be a commission with powers to investigate and to conciliate, if necessary with the power to take appropriate legal action to stop unjustifiable discrimination. I emphasise the word "unjustifiable". I am not asking for something unreasonable. I believe that a sense of proportion is necessary. That would be embodied in my Bill. No one pretends that disablement does not pose problems. I am not making absurd or preposterous demands for blind bus drivers; I am not suggesting that there should be deaf piano tuners. No one is making ridiculous suggestions. The Bill cannot be laughed out on those grounds. The Bill does not seek an unreasonable ban or discrimination. For example, it would not be an offence to discriminate where the costs would be disproportionate to the benefits, if it was absolutely impractical to make changes or if the changes created definite safety hazards. I recognise all those problems and I take them into account in my Bill. However, the Bill is necessary because unjustifiable discrimination exists. To outlaw discrimination is the most direct method of reducing it. The Bill will not immediately affect attitudes towards disabled people, but it can affect the behaviour of the public towards disabled people. In time its influence would be felt on attitudes, because antidiscrimination Acts approved by Parliament have a vital declaratory effect in contrast to the bromides that we have been hearing in recent years. Above all, such legislation would confer legal rights rather than hopeful expectations. In a generally law-abiding society such as ours, those rights will be respected and observed. Similar legislative provision for disabled people has already been made in the United States. It is operating successfully. There has been legislation in Canada. In this country we have not proposed legislation to outlaw discrimination against disabled people, but we have legislation to outlaw discrimination on the grounds of race and sex. Therefore, we have recognised the principle of legislating against the evil of discrimination. So far disabled people have suffered discrimination in silence, but there is absolutely no doubt that there is now a new awakening among them and a growing demand that they should have the same rights as everyone else. They look to the House to provide those rights. Although the Bill is merely a modest first step in according those rights, I hope that the House will show today and in the months ahead its determination to lighten the burden and enhance the prospects of our disabled people.That leave be given to bring in a Bill to provide that discrimination of an unjustifiable nature against disabled people shall be illegal.
Question put and agreed to.
Bill ordered to be brought in by Mr. Jack Ashley, Mr. Lewis Carter-Jones, Mr. Jack Dormand, Mr. Alfred Morris, Mr. Dennis Skinner and Mr. Dafydd Wigley.
Disablement (Prohibition Of Unjustifiable Discrimination)
Mr. Jack Ashley accordingly presented a Bill to provide that discrimination of an unjustifiable nature against disabled people shall be illegal: And the same was read the First time; and ordered to be read a Second time upon Friday 9 July and to be printed. [Bill 160.]
Orders Of The Day
Defence
Order read for resuming adjourned debate on amendment to Question [1 July]:
Which amendment was to leave out from "House" to the end of the Question and to add instead thereof:That this House approves the Statement on the Defence Estimates 1982, contained in Cmnd. 8529.—[Mr. Nott.]
"fully supports the United Kingdom's continued membership of NATO; recognises that this involves both a commitment to detente through negotiations for multilateral arms control and disarmament and to deterrence through conventional and nuclear forces; declines to approve Her Majesty's Government's decision to purchase Trident missiles but despite the present economic difficulties believes that the NATO commitment to an annual increase of 3 per cent. in defence expenditure should be maintained."—[Mr. Crawshaw.]
Question again proposed, That the amendment be made.
3.49 pm
My right hon. Friend the Secretary of State for Defence spoke last week largely about the direction of the defence programme. Today I shall speak first about people, especially the men and women in the South Atlantic task force and those who organised its despatch. My hon. Friend the Member for Chertsey and Walton (Mr. Pattie), if he catches your eye, Mr. Speaker, will say something about the role of British industry.
The Falklands campaign has been a combined operation in two senses. First, it was a combined operation of the British people. The national upsurge of resolve when Argentina invaded our territory exceeded anything since the Second World War. Not only the Armed Forces, the Royal Fleet Auxiliary and the Royal Maritime Auxiliary Service, but the dockyard workers, the civilians who back up the forces in every part of the country, workers in the factories and supply depots and men and women in every part of the country were determined to do what they could to put right what they correctly saw as an international outrage. The speed with which the task force put to sea astonished the country, and, I believe, the world. It may even have surprised some of those who were directly involved in the operation. After years of self disparagement, the British people asked themselves in disbelief "Can it really be we who are doing this?". I pay tribute to the logistic and supporting elements of all three Services—I hope that I do not offend the other two Services if in this context I mention the Navy—and all the others who worked round the clock to get the task force ready for sea. In a narrower sense, the campaign has been a combined operation between the three Services. In peacetime there is normally a healthy rivalry between them. In wartime, especially in modern war, it must take second place. The Falklands campaign was a remarkable demonstration of combined operations between the three Services and the Merchant Navy. It was one of the main reasons for our victory. A good example of it was demonstrated in one of the most important and critical operations of the entire conflict—the landing of 3 Commando Brigade and the 2nd and 3rd battalions, the Parachute Regiment, at San Carlos. An amphibious assault is one of the most complicated and risky operations of war. We have all read or heard graphic accounts of the action. What is less well known is the fact that at the same time as that landing, diversionary attacks were launched by RAF and Navy Harriers on Argentine positions at Stanley, Goose Green and Fox Bay. Frigates and destroyers bombarded Stanley and raiding parties of marines and paratroops went ashore to harass Argentine positions elsewhere on the islands. A Vulcan bombed Stanley airport. The aim was to convince the Argentine commanders that the threat of an invasion lay on the east or south of the islands. The strategy worked and the beachhead was established without serious opposition from Argentine troops and with no battle casualties. For each of the Services, a great deal could be said of their individual achievements while much is still not yet fully known. However, I should like to tell the House of some of them. For the Royal Navy, all our missile systems achieved success. With the land-based Rapier and Blowpipe, they were responsible for destroying about 38 Argentine aircraft. Naval gunfire support proved immensely important in the re-taking of South Georgia and in raids and the land battle in the Falklands. Nearly 8,000 rounds were fired by 4·5 in guns. The effect of our submarines on the Argentine navy was profound both before and after the arrival of the task force. After the sinking of the cruiser "General Belgrano", the Argentine navy did not venture again outside their 12-mile limit. Our submarines thus played a fundamental part in the exercise of sea control. Our anti-submarine warfare capability appears to have deterred Argentine submarines from playing an active part in the operations. For the Fleet Air Arm, the fact that throughout the operation we achieved 90 per cent. availability of all aircraft embarked, demonstrates the immense skill and dedication of the Fleet Air Arm support crews. I should like to say more about the outstanding success of the Sea Harriers. They shot down at least 28 Argentine aircraft, about 23 of which were fast modern jets such as Mirages and Skyhawks. Even when outnumbered by a factor of two to one, as was often the case, Sea Harriers continued to outperform and outfight the Mirages and the Skyhawks. On one raid, two Sea Harriers accounted for three Skyhawks of a flight of four. The fourth flew into the sea while attempting to evade. We suffered no losses in air-to-air combat during the campaign. The Sea Harrier's success can be attributed to a combination of a highly manoeuvrable and versatile fighter, a reliable and capable missile—the Sidewinder—and, above all, to the resourcefulness, skill and courage of our young pilots who fought in the highest tradition of the Fleet Air Arm. Together with the RAF's Harriers, those aircraft accounted for a total of about 36 Argentine aircraft in the air and on the ground.Will the Minister break down the figures? He said that 30 Argentine aircraft were shot down by missiles from ships and Blowpipe. Will he give the number of aircraft that were shot down by missiles launched from ships alone?
I would rather not do that at this stage. Attributing success to one missile or another or to one Service or another is a delicate operation. We are engaged on it now and I would prefer to wait a little longer until we are more sure of the figures. I would prefer to get them right and publish them rather than break them down prematurely.
Some 18,000 men from the Royal Navy, Royal Marines, Royal Fleet Auxiliary and Royal Maritime Auxiliary Service, Merchant Navy and supporting civilians sailed in the ships of the task force. Several ships had already been at sea for some months away from the United Kingdom and were due to return to Britain when the operation started. It is difficult to find adequate words to describe their performance. After long periods at sea, closed up, at high states of readiness, some not seeing daylight for many weeks, often in very bad weather—a good deal worse on average than in the North Sea—they kept their ships, aircraft and equipment in working condition without shore support and then fought well, without the help from shore-based aircraft and allied forces that we expect in the eastern Atlantic. By the time some of the ships return to the United Kingdom they will have been continuously at sea for more than six months.I am sorry to interrupt, but I should like an answer to a question that I have been asked to ask by the representatives of the families of those who are on HMS "Endurance" which has been at sea continuously, I am told, for nine months. It is said that there is an inexplicable delay in their return and that they will not come back until September. The families are asking about the delay and the Ministry of Defence is not answering. The families are worried and anxious at not being able to discover the reason. We were told that "Endurance" would be one of the first ships to be relieved. Will the hon. Gentleman give me an answer, either now or later, that can be passed to those families as to when "Endurance" will be brought home? That would dispose of some of the reasons that I will not give in public here as to why it is being suggested that she is being kept in the Falklands.
I pay tribute to the crew of "Endurance". They have performed a remarkable feat of stamina. I was not aware of the right hon. Gentleman's point. I shall look into the matter immediately and let him know what is happening as soon as possible.
Before the hon. Gentleman leaves the success of our operations at sea, will he deal with our defences against sea-skimming missiles which the majority of the public believe are inadequate?
I preface my reply to the hon. Gentleman with a request not to be asked to give way too often. I have much to say and I want to deal with disarmament, a subject that I know hon. Members want to discuss.
I gather that the hon. Gentleman is referring to Exocet. It is a dangerous and effective missile. That is why we have equipped our ships with the surface-to-surface version. The air-launched version that was used against us did not have entirely its own way. A high proportion of missiles were successfully countered by the ships against which they were aimed. The position is therefore not quite so bad as some members of the public have thought, but we are certainly looking at this. Turning now to the men who fought on the ground, part of the initial landing force was 3 Commando Brigade, Royal Marines. These troops were, of course, ideally suited to this operation, first because of their amphibious experience and techniques, secondly, because they are trained and equipped to operate in the cold and wet of the Arctic, and in the Falkland Islands it has been very cold and wet, and, thirdly, because their commando training enabled them to march 50 miles across the mountains and peat bog of the East Falklands with full equipment and then conduct a series of successful night assaults in the mountains west of Stanley against an enemy who had had nine weeks to prepare their positions. The same is true of the training of the parachute battalions who landed with them who shared their forced marches to Stanley and who carried out the now legendary attack on Darwin and Goose Green.The whole House will be glad that my hon. Friend has paid special tribute to the Royal Marine commandos. Could he at some stage say something about their command structure? They particularly captured our imagination. It is a small force and the pyramid is very thin at the top. Would it be possible occasionally for a commandant-general of the Royal Marines to become a member of the Admiralty Board and go on to become Chief of Defence Staff?
That is not a subject to which I have previously given attention, but I certainly undertake to look at it.
It is difficult to overstate the achievement of any of the land forces, be they from the Royal Marines, the Parachute Regiment or 5 Brigade. In operations often against odds of two or three to one, their success has been a vindication of the high standard of their training and their professionalism. The problems of maintaining the fitness of soldiers in cramped, uncomfortable conditions on board ship during a long voyage in rough seas were substantial. Yet this was done successfully and when finally disembarked the ground forces were no less effective fighting soldiers capable of long and arduous marches over some of the most inhospitable terrain in the world. Their performance was in the highest tradition of the Armed Forces. A vital contribution to the success of our operations was made by the Special Forces. Patrols of the Special Air Service and the Special Boat Squadron were landed into East and West Falklands from the task force three weeks before the landing. Working in among the enemy, living in the field in conditions of extreme discomfort and danger, they were able to provide intelligence that was vital to the successful conduct of the landing and to carry out the most daring and successful raid against Pebble Island, destroying aircraft that would have been a threat to the subsequent landing. My right hon. Friend told the House something earlier about the contribution of the Royal Air Force. Let me say a little more today. Of the many essential tasks carried out by the RAF, perhaps the most important but least noted was that of supply. From the start of the operation, RAF Hercules and VC1Os were ferrying vast amounts of equipment and large numbers of Service men to Ascension Island, 5,000 miles from the United Kingdom. Every day for the past three months these aircraft and their crews have endured a punishing schedule which still continues despite the ending of active hostilities. One of the most remarkable features of the operation for the RAF was the way in which air-to-air refuelling dramatically lengthened their reach. The Hercules, for example, have been making a regular shuttle of immensely long round trips to the Falklands and to the task group. The longest to date took 28 hours non-stop. That is a tribute to the crews.In referring to the skill of the Service men involved, can the Minister tell us whether any cost tag has been put on the operation?
Yes, my right hon. Friend the Secretary of State's written answer to a question yesterday by the right hon. Member for Llanelli (Mr. Davies) shows the latest figures that we have been able to publish. We hope to publish more in the near future.
After modification for deck operation and ski jump training, 14 RAF Harriers deployed to the South Atlantic. They carried out some 150 operational sorties with only three aircraft lost. An indispensable role was played, too, by the members of the Royal Fleet Auxiliary, the Royal Maritime Auxiliary Service and the crews of commercial ships. Some of them were at times in great danger, and sadly they too suffered casualties. To be a member of the crew of any of these ships must have required courage, not least those of the oil tankers and ammunition ships in the task force and of the commercial ships which entered San Carlos water. We have said that we do not propose to draw premature lessons from the campaign. I am sure that that is right. On many subjects it will require some months of careful analysis, with those who fought, of individual events and actions and the performance of individual weapons. The lessons, I believe, will be valuable, to us and to our allies. There have been reports, both in this country and abroad, that the victory of our forces owed much to superior equipment. We shall learn more about this in the coming weeks, but I can say now that on the whole there is little evidence that Argentine equipment was bad or inadequate. There is one lesson which I confidently draw now, however. Even in the age of the missile, one of the most important factors in this campaign has been the skill, training, courage, morale, fitness and team spirit of our troops, the leadership and example given by officers and NCOs, and, not least, the efficiency of logistic planning and command and control. All these depend principally on human beings, not on equipment. Some of the Argentine troops were well trained regulars whose professionalism was shown by the well-prepared defensive positions that our troops captured. There were many examples of Argentine skill and courage, not least from the Argentine pilots.Can my hon. Friend yet give us any idea of the usage and quantities of Argentine equipment taken since the conflict ended, in view of reports in magazines such as Aviation Week about the extent of equipment captured? I am thinking particularly of use by CCFs and territorial regiments back home as well as the garrison that may end up in the Falldands.
I have given written answers to one or two questions on this, which my hon. Friend may care to study. The short answer is that there is a good deal of equipment, which we are still sorting. There is also a great deal of ammunition which will take some months to sort.
My hon. Friend has suffered many interventions and I apologise for interrupting him again. Has he yet been able to carry out a full analysis of stocks of napalm and dumdum bullets left by the Argentine forces and the purposes to which they were likely to be put?
We have no evidence of the use of dumdum bullets. We discovered a substance bearing some resemblance to napalm, but it is still being evaluated.
The leadership displayed by the Argentine officers was unable to compensate for the low morale of their conscripts, who made up 60 per cent. of their garrison. The relationship between officers, NCOs and men was poor. While they had good night vision aids they were not skilled in their use and not well trained in fighting at night. Their logistic planning was inadequate. In all the human elements I have listed there was, then, no doubt of our superiority. No praise can be too high for the way in which our forces, backed by their civilian support—and backed, I should add, by the nation—conducted themselves during the campaign. The quality of their weapons apart, the ultimate test of any nation's armed forces is whether they have the skill, the training, the courage, and the will to win. The answer for the Armed Forces of the United Kingdom is emphatically "Yes". I turn now, in striking contrast, to the Opposition Front Bench. The official defence policy of the Labour Party as approved last year is to reduce defence spending to the average proportion of the GDP spent by the West European countries. This would reduce our total planned defence budget by about one-third.That was last year.
I am talking about last year.
As was pointed out in last year's debates on defence, this would mean some alarming cuts in our forces—the equivalent of eliminating one of the three Services in its entirety—and between 350,000 and ½ million extra unemployed. However, this year, the situation has changed. The resolution recently approved by the Labour Party national executive committee includes what the right hon. Member for Deptford (Mr. Silkin) referred to last week as "the proviso". The proviso adds to the commitment to reduce spending the wordsI must congratulate the right hon. Gentleman, who one imagines had some hand in the wording of that proviso, because whatever may be the pretence, the reality is that these words make nonsense of the commitment to a one-third reducton in spending. That is what they do and the right hon. Gentleman is to be congratulated upon it. "But," the right hon. Gentleman will say, "we shall have more money for conventional forces because we will abandon Trident." No so. This year's Labour Party motion destroys that case. It proposes that, while we should still remain good members of NATO, we should cancel the 3 per cent. annual increase in defence expenditure agreed by NATO. Even if the 3 per cent. increase were cancelled for only one year, and then resumed, this alone would eliminate from the defence budget all the money saved by Labour's proposed abandonment of the Trident programme. This is because the Trident programme will take only 3 per cent. of the defence budget over the 18 years of its introduction. That 3 per cent. is cancelled out by the Labour proposals."bearing in mind the need to avoid widespread and precipitate redundancies for which no alternative work has been provided and Britain's need to provide adequate conventional defence forces".
Will the hon. Gentleman now tell us what the perecentage of Trident on the budget would be during the peak year?
On the equipment budget, I believe it is 10½ percent.
It is 15 to 20 per cent.
The average over 18 years, which is the relevant point, is 3 per cent. That is why the abandonment of the 3 per cent. growth target by the Labour Party for even one year, because it would be carried forward to all successive years, would have the effect of withdrawing from the defence budget all that the Labour Party has undertaken to save by abandoning Trident.
rose—
I shall not give way again. I have much to say.
I suppose I should out of courtesy refer to the amendment in the names of the right hon. Member for Plymouth, Devonport (Dr. Owen) and of hon. Members of the Liberal Party. It generally supports the Government policy except that it opposes the Trident programme. It was moved on Thursday by the hon. Member for Liverpool, Toxteth (Mr. Crawshaw)—who has kindly sent a note to my right hon. Friend the Secretary of State explaining why he cannot be here today—in a speech in which he generally supported the Government's policies but failed to mention the Trident programme. We shall wait to hear with interest what the other spokesmen for the SDP and the Liberal Party have to say, however numerous their opinions may be. I turn now to the subject of deterrence. I note with satisfaction that the national executive committee of the Labour Party accepts the policy of deterrence. Its latest document says:Those words were quoted with approval, by the right hon. Member for Deptford on Thursday. They express the doctrine of deterrence. The same document proposes that Labour should maintain its support for NATO, and I understand that also is the position of the Opposition Front Bench. It was under a Labour Government, with Ernest Bevin as its Foreign Secretary, that NATO was formed because of the perceived threat from the Soviet Union. The Soviet threat has not changed since 1949 except that it has become greater. The Soviet Union has become more powerful, its record of aggression longer and more alarming. Russia since 1917 has absorbed 17 countries or territories which were not its and has imposed its dominion on half a dozen more in Eastern Europe. Its forces grow steadily stronger and it continues to declare that its destiny is to expand the power of Russian Communism. Its interference in the internal affairs of other countries is ever more brazen. Since NATO was born it has relied on the doctrine of nuclear deterrence. In that time we have had peace in Europe. I believe that is no coincidence. It has had to rely on that doctrine because the Soviet Union rejected the Baruch plan put forward in 1946 by the United States, which then possessed the world's only atomic weapons, for abolition of nuclear weapons and international control of nuclear weapons and nuclear power. Since 1949 the Soviet Union has had nuclear weapons of its own. The knowledge that created nuclear weapons cannot be wiped from men's minds. So long as the Soviet Union has nuclear weapons—even a few—the West must have them, too. For if the West had none its conventional weapons, however powerful, would have only the value of scrap metal. We would not, in the words of the Labour Party document, have sufficient military strength to discourage external aggression from the Soviet Union, nor to defend ourselves should we be attacked."Britain should have sufficient military strength to discourage external aggression and to defend ourselves should we be attacked".
rose—
I shall not give way again.
The question is whether Britain should have its own independent nuclear deterrent. We have had our own independent nuclear deterrent since 1955. We have been unanimously supported in doing so by our NATO allies on many occasions. We believe that if the Soviet Union were to imagine, however mistakenly, that the United Stales would not come to the defence of Europe if it were attacked, the British deterrent would be an added safeguard. The Labour Party now proposes to abandon this policy, which has been upheld by eight successive British Governments, in favour of a policy that relies for nuclear protection on NATO and, therefore, on the United States nuclear deterrent. I find the morality of that position confusing, to put it mildly. But the unreason of the Labour Party does not stop there. Its latest document goes on to propose the closing down of all nuclear bases, including American, on British soil or in British waters. This is a policy intended to save our own skins while asking the Americans to protect us by risking theirs. But it would, in fact, make Soviet aggression or blackmail more likely. The document proceeds to reach the apogee of silliness by calling for a European nuclear weapon free zone, ignoring the fact that the Soviet Union's SS20 missiles can reach almost any point in Western Europe, and the whole of the United Kingdom, from outside Europe. This is a shabby document drawn up in a hopeless attempt to cure the ills of the Labour Party. Would that Ernie Bevin were with us now to give his views on a document such as this! If we are to have an independent nuclear deterrent, it must at least be effective. We believe, on all the evidence available to us, that by the 1990s Polaris, even with Chevaline, which is now in service, may not be effective because the Russians will have improved their defences and because the Polaris boats will be at the end of their useful life. We therefore need a more modern system. Of those available, Trident is by far the most cost-effective. Any system based on submarine-launched cruise missiles would either be ineffective or many times more expensive, for three reasons: the likely vulnerability by the 1990s of the cruise missiles unless launched in very large numbers; the fact that the cruise missile carries only one warhead; and the limited sea area in which the cruise missile submarine would have to operate because of the range of the missile. If the Labour party believes that Britain should have sufficient military strength to discourage external aggression, Trident is the weapon for it. It is indeed accurate, but so are the nuclear weapons of the Soviet Union. In the form in which we intend to acquire it, it will represent only what is necessary to assure deterrence in the 1990s and beyond. The ratio between the British Trident and the Soviet strategic systems will be about the same as that for Polaris when it came into service. A number of hon. Members spoke last Thursday about disarmament. The Government believe in disarmament that does not increase the danger of war or of military blackmail. In the words of my right hon. Friend the Prime Minister at the United Nations special session last month, we believe inThis is entirely in line with the final document of the first United Nations special session on disarmament in 1978; whose basic assumption was that disarmament should be sought by multilateral means, by negotiation and not by unilateral gestures. Yet we hear calls from the Opposition for one-sided disarmament and for the United Kingdom to throw away its nuclear weapons, apparently in the hope that other nuclear powers would respond. What I have never heard from any Labour spokesman is any suggestion on which of the other four nuclear powers would respond. China? France, whose Socialist Government have just launched their sixth nuclear ballistic missile submarine? The United States? The Soviet Union? There is no answer. If the United Kingdom were to be so foolish it would make a futile gesture that would profoundly destabilise NATO and would cause delight in the Kremlin whose leaders, in the words of the right hon. Member for Cardiff, South-East (Mr. Callaghan)—I hope I quote him correctly as I am relying on newspaper reports—would laugh at our naivety."the balanced and verifiable reduction of armaments in a way which enhances peace and security".
I do not know whether I said that, but I hope I did.
I am much obliged to the right hon. Gentleman.
Successive Governments since the war have worked for arms control and disarmament. Of the nine agreements achieved since the 1950s, five were signed under Conservative Governments and four under Labour. The one real disarmament agreement, the biological weapons convention of 1972, was signed under a Conservative Government, as was the partial nuclear test ban treaty of 1963. The main reason why the world has not achieved more is not want of effort by the West. As the Labour Party, of all parties, should understand, it takes two sides to make an agreement. The main obstacle has regularly been the refusal of the Soviet Union to admit verification of the necessary measures on its soil because of the closed nature of its society. Time and time again, that is the block we have come up against. In the face of slow progress towards balanced and verifiable disarmament it is very tempting to throw up our hands and call for dramatic gestures. To do that is to forget that wars have more often come from an imbalance between a powerful, acquisitive State and a weaker peaceful State than they have from an excess of armaments on both sides. One has only to look at the 1930s to see the lesson. Hitler was encouraged in his aggression by the weakness, disunity and lack of resolve of the free world. I doubt whether the Afghans would support the view that the present war in their country is the result of their excessive armaments. Nor would the Poles attribute that cause to the coercion they have recently suffered at the hands of the Soviet Union. Nevertheless, we are entering a period of negotiation between East and West. The negotiations on intermediate range nuclear weapons are under way in Geneva, resulting from the Western proposal of 1979. The START talks in Geneva have recently begun, on President Reagan's initiative, for the reduction of strategic nuclear weapons. The West is about to put forward new proposals at the Vienna talks on mutual and balanced conventional force reductions in Europe. The West has proposed talks on improving confidence building measures between both sides. I do not believe we should expect rapid results from these discussions. That is not the Russian way. The Russian way is to probe for disunity in the Western camp, to test our resolution and our firmness, and only when it fails to divide us, to make any move forward. That is the lesson of how we got the Russians to the INF negotiating table. We must expect further Russian calls of unverifiable but high-sounding declarations. They have called for a declaration on no first use of nuclear weapons. We have a better position—no first use of any weapons. That is what the Soviet Union is already bound to by the United Nations charter and the Helsinki agreement. The Soviet Union has called for a freeze on intermediate range nuclear missiles in Europe. The West has a better proposal—the abolition of all intermediate range nuclear missiles in Europe or targeted on Europe. The Russians have called for a freeze on strategic nuclear weapons. The West has a better position—reductions by one-third in the nuclear weapons of both of the super powers. Some time ago the Russians called for a declaration on the avoidance of the use of force in international relations. Three years later they invaded Afghanistan. Some of the Western proposals I have mentioned have been put forward by the United States. But they have been fully discussed in advance in NATO and received NATO's support. The United Kingdom Government, for their part, have not been idle. Within the last two years, the Government have put forward, with the Netherlands, the draft which became the basis for the 1981 United Nations agreement to restrict the use of certain inhumane weapons. The Government put forward a proposal in the committee on disarmament for means of verifying a ban on chemical weapons. They put forward last year, with four other countries, not including the United States, the draft of a comprehensive programme on disarmament, much of which has been incorporated in the document now being discussed by the United Nations special session. The right hon. Member for Deptford quoted on Thursday the sayingIt cannot be eternal vigilance to throw away our own nuclear defences and destabilise the Western alliance at a time when the Russians have given no comparable undertaking and their spending on arms has increased by 40 per cent. in the last 10 years."The price of freedom is eternal vigilance".
Will my hon. Friend give way?
I would rather not. I am about to conclude.
As we enter this crucial period of international negotiations on disarmament, it cannot advance the cause of disarmament by both sides to throw away our own nuclear defences and to pretend that a Labour Government would cut our conventional forces by one-third while we and our allies are at the negotiating table. Nothing could be better calculated to make the Russians play for time in the hope of disunity in the Western camp. Our best course is to maintain our defences and insist that, if we are to disarm, the Russians must do the same. That has been the policy of the West for over 30 years, during which peace has been kept in Europe. The best route to continued peace and to agreed disarmament is to convince the Russians that the West remains united, resolute and strong. The brilliant success of our forces in the Falklands campaign will not have been lost on the Russians. It will, I believe, have enhanced in Europe the prospects of peace and freedom.4.24 pm
Like other right hon. and hon. Members, I pay my tribute to the skill, bravery and dedication of the Armed Forces and members of the Merchant Navy for their achievements in the Falklands. In doing so, I am sure that hon. Members will not forget those who gave their lives and the grief caused to their relatives and families. We must also not forget the pain and suffering of those who were injured and maimed. Some of that pain and suffering may last a considerable time.
The Minister made a curious speech. The hon. Gentleman sought to attack the Labour Party defence policy. He did not do so very effectively. He did, however, make some strange statements in relation to nuclear weapons. One part of his speech was to a great extent a rehash of the Trident debate. It contained the very strange statement—made more blandly on this occasion than on any other occasion—that it is immoral for a member of NATO not to have nuclear weapons. His point was that it was somehow immoral for Britain not to have Trident and to rely on the American contribution to NATO in terms of strategic weapons. Many countries belong to NATO. Presumably those that do not possess nuclear weapons are acting in an immoral way. If this means, for instance, that Germany is being immoral, then long may that immorality continue. The real problem today is the proliferation of nuclear weapons. The Opposition appreciate that neither Russia nor the United States will give up its weapons unilaterally. We want weapons merely to be in their hands and for those weapons to be reduced. The hon. Gentleman's arguments are not worthy of him. He should drop that kind of approach and argue the substance of the case.Is it not the case that the only country within the Warsaw Pact to possess nuclear weapons is the Soviet Union? If one follows the logic put forward by the Government, not only Canada but all other NATO countries should have an independent nuclear deterrent as, presumably, should all the Warsaw Pact countries. That would mean a massive proliferation of nuclear weapons.
My hon. Friend is right. We oppose any proliferation of nuclear weapons wherever that may occur. If we could get back to a situation in which only the two super-powers owned them, that would be a step towards a world that was safer and more free of nuclear weapons.
In the first part of his speech, the Minister dealt with the Falklands campaign. I should have thought that a substantial part of what he had to say could have been included in the White Paper. The Government have published a White Paper that ignores the Falklands campaign completely.rose—
I shall give way in a moment. I should like to conclude this point. The Government have published a two-volume document with a glossy cover, costing £8·50, without a single reference to the war in the Falklands. This shows the kind of insensitivity that the Secretary of State has displayed, I am sorry to say, on occasions during his tenure of office. The only mention of the war made in the document upon which we have to vote tonight is a pathetic half-page foreword that is not even incorporated into the main document.
I understand the argument that there must be a military analysis of the consequences. I understand that there should be a wish, over the next few months, to examine which weapons worked well and which worked badly, what went wrong with some of the radar and why the Welsh Guards were left immobilised at Bluff Cove without air cover. These factors have to be examined over a longer period of time. But that need not have prevented the Secretary of State from publishing a White Paper that dealt with some of the things we have been told today and that at least acknowledged the fact that over the past few months, for the first time in almost a generation, Britain has been at war with another country. Nowhere does it mention that more than 250 men were killed, twice as many were injured, five Royal Navy ships were sunk, and that the "Sir Galahad" was sunk with 30 Welsh Guardsmen still entombed. How on earth can we be asked to approve a document that lists Royal Navy ships as operational when we all know that they are at the bottom of the South Atlantic? That is insensitivity that the Secretary of State should not have shown towards the House. It is not an academic subject. We are being asked to vote on a White Paper when the facts contained in that White Paper are incorrect. We should not be asked to vote upon it. The Secretary of State should have published a short White Paper incorporating an account of what is known about the Falklands war and in the autumn he should have published a fuller analysis. He could have had his Estimates before the Summer Recess—he has to—and they could have been voted upon. No doubt in the autumn there will be further Supplementary Estimates to pay for the increased costs. That would have been the most prudent and sensible course for the Government to have pursued.I should like to return to the point that the right hon. Gentleman made about the morality of this country not dispossessing itself of nuclear weapons. Does the right hon. Gentleman consider that there would never be an occasion on which the United States of America would not whole-heartedly dedicate the use of its nuclear arsenal to the defence of Europe? Secondly, does the right hon. Gentleman believe that it is realistic for Europe not to have an essential element in the concept of a deterrent, to which his party subscribes, against the threat of the Soviet Union?
Europe has an essential element. The countries to which the hon. Gentleman has referred are members of NATO. The hon. Gentleman is saying that he does not trust the Americans. That is a great condemnation of NATO. I did not appreciate that the hon. Gentleman held those views about NATO.
The White Paper contains another statement that I believe will be proved to be wrong by the end of the year. It states that for the financial year 1982–83 defence spending will be just over £14 billion. I understand that that figure has already been overtaken by events and is wrong. The correct figure will be much higher. The Secretary of State looks puzzled. Can he tell us whether at the end of the year defence spending will be £14 billion, because the Falklands expenditure will have to be added to that sum? Despite the answers given by the Ministry of Defence it is clear that when we take account of the costs of the war, the replacing of equipment in this financial year, the cost of maintaining a garrison in the Falklands for the rest of the year—the Ministry of Defence does not yet know how much that will cost—the cost of the Falklands campaign for this financial year may not be far short of £1,000 million. That pushes defence spending for this financial year to nearly £15,000 million, or from 5·1 per cent. of the country's gross national product to 5·3 per cent. Next year the defence budget and the percentage of gross national product will be even higher, because, apart from the cost of the Falklands, the Secretary of State has given a commitment that the defence budget will increase by 3 per cent. in real terms. If we assume defence inflation of 10 per cent.—that is a conservative estimate because what is often laughably described as defence inflation is the causal relationship between the armaments industry and the Ministry of Defence and it exceeds general price inflation—that adds 13 per cent. to the core £14 billion, and if we add about £500 million for the Falklands, defence expenditure next year may be close to £,16½ billion or almost 5·5 per cent. of the gross national product. Gross domestic product is hardly increasing. The Secretary of State apparently believes that the Falklands part of the expenditure will come from the contingency fund. Having read the Sunday Express, I am not sure to which contingency fund he is referring, whether it is one that everyone knows about, or one that he keeps in the Ministry of Defence—according to the Sunday Express—out of reach of the Treasury. I assume that it is the main contingency fund. The House knows that that contingency fund is not a bottomless crock of gold; it is a mere accounting device. Eventually, the extra expenditure will have to be found. The Government should tell us how they will find the extra expenditure that increases the percentage of gross national product from 5·1 per cent. to 5·5 per cent. Where will the money come from? It will not come from growth in the economy because, from the Bank of England's report a few days ago, we can see that the economy is not growing. The increase could come from extra borrowing, but the Government do not like borrowing and have spent three years of their existence reducing public borrowing. It could come from increased taxes, but again, the Government theory and p