House Of Commons
Thursday 27 February 1992
The House met at half-past Two o'clock
Prayers
[MR. SPEAKER in the Chair]
Private Business
MERSEY DOCKS AND HARBOUR BILL [Lords] (By Order)
Order for Third Reading read.
To be read the Third time on Thursday 5 March.
ALLIANCE AND LEICESTER (GIROBANK) BILL (By Order)
BRITISH RAILWAYS (No. 4) BILL (By Order)
CROSSRAIL BILL (By Order)
EAST COAST MAIN LINE SAFETY BILL (By Order)
KING'S CROSS RAILWAYS (No. 2) BILL (By Order)
LONDON DOCKLANDS RAILWAY (LEWISHAM, ETC.) (No. 2) BILL (By Order)
LONDON UNDERGROUND (GREEN PARK) BILL (By Order)
LONDON UNDERGROUND (JUBILEE) BILL (By Order)
Orders for Second Reading read.
To be read the Second time on Thursday 5 March.
ABERDEEN HARBOUR ORDER CONFIRMATION BILL
Read the Third time, and passed.
Oral Answers To Questions
Northern Ireland
Banbridge Hospital
To ask the Secretary of State for Northern Ireland what guidance the management executive of the Department of Health and Social Services has recently given to the Southern health and social services board concerning the future of Banbridge hospital.
None, Sir. The hon. Gentleman might be referring to the fact that on receipt of the Southern board's investment appraisal for the refurbishment of Banbridge hospital it became clear that there were a number of deficiencies in the document, as certain issues had not been properly addressed. The board has simply been asked to provide that information before I can make a decision.
The Minister knows of the concern about the future of Banbridge hospital and knows that, for many years, the Southern board promised its refurbishment. That project was finally put into the proposals for this financial year, only to be clobbered by the moratorium on capital expenditure. As the Minister said, his Department wrote to the board in January to tell it that it should reconsider "the issue of Banbridge". It also supplied to the board a momorandum which has not been made available to other people. Is not the implication obvious? The hon. Gentleman is asking the board either to run down or to close the hospital. Is not that a consequence of the need to provide up to £15 million to cure the concrete cancer problem at Craigavon? What other hospitals will be affected? Why cannot that exceptional expense be met with exceptional funding?
I am doing no such thing. The hon. Gentleman will know that any project in excess of £1 million must come to me for a decision. An investment appraisal comes with the project. The investment appraisal published by the Southern board was deficient in many respects. The board has a commitment to Banbridge hospital and to continuing health care and social services in its area. I merely want the information upon which I can decide whether refurbishment can go ahead. Therefore, there is no lack of commitment by the board or by me.
Security
2.
To ask the Secretary of State for Northern Ireland if he will make a statement on the security situation in Northern Ireland.
4.
To ask the Secretary of State for Northern Ireland if he will make a further statement on the security situation in Northern Ireland.
My last statement to the House followed the deaths of nine people on 4 and 5 February. Since then there have been five deaths as a result of the security situation, including four men shot by the security forces near Coalisland on 16 February.
The Government and security forces will continue to meet their responsibility to bring terrorism to an end within the rule of law by pursuing a firm and resolute security policy and by working for progress in the political, economic and social fields.Does the Secretary of State accept that the security forces must not only act within the law but always be clearly seen to act within it if they are to deprive the terrorist group of the environment in which it thrives? Will he therefore ensure that after any incident involving the use of lethal force there is a prompt, thorough and impartial investigation so that the facts are plain to see?
I am most grateful to the hon. Gentleman for his statement and endorsement of the policy under which the security arrangements are conducted within the Province and for his reference to the rule of law. I assure him that after each such incident the Royal Ulster Constabulary investigates the circumstances.
Will my right hon. Friend give serious consideration to the introduction of short-term selective internment? At a time of heightened terrorist activity, would not that undermine the operational effectiveness of the terrorists and play havoc with their planned acts of violence?
My hon. Friend is right to point out that the powers of executive detention are on the statute book and are available for use. We do not comment further on them, beyond the fact that they are available for use.
Was not the Secretary of State a little disappointed at the reaction of some Church leaders to the successful contact by the security forces at Coalisland? Is not it important that the Northern Ireland Office should ensure that full information is available to the public on the extent of the deadly arsenal that the terrorists had with them on that occasion, which included AK47 assault rifles and Dsh heavy machine-guns?
Will the Secretary of State ensure that the public are aware that 12 dedicated terrorists were involved in that attack and, although no one glories in anyone's death, make it clear again that only four were shot? Does not that show that the security forces acted with remarkable restraint and that there is no dedicated shoot-to-kill policy?I support the hon. Gentleman's observations on the need for the circumstances of such cases to be made known. I do not think that there were any doubts in Northern Ireland about the circumstances of that case. The four men who were killed were sent on a murder mission. It is easy to assess their potential for action and their intent from their fire power, to which the hon. Gentleman referred.
Does the Secretary of State recall a speech that he made several months ago in which he encouraged the business community to take on racketeers? Does he recall that he said that if the business community took the first step he and the police would give it whatever support and back-up it needed? Is he aware that one business man did as he suggested and, as a result of his coming forward, three people were convicted of racketeering? However, that business man was forced to close his business, change his name and go into hiding with his wife and two children, and he has received no financial support from the Northern Ireland Office. Despite the sympathy expressed by the judge in court, there is no way in which that business man can legally make a claim against the Northern Ireland Office. Will the Secretary of State ensure that his Department backs up his promises to the business community and ensure that such disincentives to the business community coming forward are not allowed to continue?
I know that the hon. Gentleman supports our drive to deprive the paramilitaries on both sides of the sources of finance that sustain their campaigns. I recall the speech to which the hon. Gentleman referred and I know that he has referred before to a case similar to that which he described today. I confess that I thought that that case had arisen a little before that speech. If the hon. Gentleman wishes to write to me about the details of the case to which he referred I shall be happy to respond.
When a Government have a serious problem that has lasted 22 years, cost billions of pounds in security and military provisions and caused immeasurable suffering to some people, it is reasonable to assume that they have a long-term policy for creating lasting peace and ending the waste. As we come to the end of this Parliament, will the Secretary of State take this opportunity to give us some insight into the Government's long-term policy which has been formulated during the past 13 years? I am not referring to ad hoc arrangements or short-term palliatives. Will the Secretary of State give an unambiguous statement of the Government's long-term policy for creating peace in Northern Ireland?
As the hon. Gentleman implied by his question, the Government's central purpose must be to bring terrorism to an end. Terrorism will come to an end when the terrorist no longer believes that he has any chance of securing his objective by the means that he is using. That calls for a robust security policy to enable the people of Northern Ireland to live normal lives conducted within the rule of law. But it also implies, as my answer to the hon. Member for Sheffield, Attercliffe (Sir P. Duffy) stated, Government policy in political, economic and social matters that deprives the terrorist of the support which he might otherwise have enjoyed.
Political Talks
3.
To ask the Secretary of State for Northern Ireland whether he will make a statement about his recent efforts to have talks with representatives of political parties in Northern Ireland.
10.
To ask the Secretary of State for Northern Ireland if he will make a further statement on the efforts he is making to reconvene all-party talks on the future government of Northern Ireland.
The Prime Minister, the Minister of State and I met the leaders of the four main constitutional parties in Northern Ireland on 11 February. As a result of that meeting, the leaders agreed to meet together to discuss the obstacles in the way of further political dialogue in the hope that new talks might be able to begin at an early date. I shall meet them again shortly.
Does the right hon. Gentleman agree that if the killing is to be stopped and a just and peaceful solution is to be found, all politicians, whatever their views, have a responsibility to speak to each other? Does he further agree that, sooner or later, the talks will have to develop into meaningful discussions about constitutional change on an all-Ireland basis because the status quo is untenable and is a recipe for continuing conflict?
I endorse what the hon. Gentleman says about the responsibility that politicians of all constitutional parties have, and a willingness so to talk has been very much present in recent years. As for his comments about all-Ireland talks, the talks on which we have been engaged, and to which we hope to return, contain more than one strand. The second strand involves the Government of the Republic and it has been a pleasure to all concerned that everybody involved in those talks has supported and sustained them.
I take this opportunity to pay tribute to my right hon. Friend the Secretary of State for all the work that he has done in the past two and a half years to improve the future and administration of Northern Ireland. Does he agree that the future economic prosperity of the area depends primarily on the defeat of terrorism and that terrorism will not be defeated until all political parties in the Province renounce violence—not just those represented in the House today but Sinn Fein?
I am grateful to my hon. Friend for his comments about the policies that we have been pursuing and economic prosperity in the Province, where we have seen advances in recent years. Our immediate agenda must be the talks on which we embarked last year. Everybody concerned has expressed an interest in returning to them.
Does the Secretary of State agree that the progress made thus far is more likely to be maintained through calm deliberation than high wire circus acts'? Will he convey to the Prime Minister what I know to be the view of the three party leaders who represent Northern Ireland in the House—that we are endeavouring diligently to meet the wishes that he expressed at the Downing street meeting on 11 February?
I endorse what the right hon. Gentleman said about the progress that has been made so far. All of us, during the time that we have been directly engaged in these matters, have found it easier to make progress when the media have not been looking over our shoulders and breathing on the backs of our necks. I mean no disrespect to the media, but some matters are carried forward more easily with the calm deliberation that the right hon. Gentleman described.
I draw the attention of the Secretary of State to a damaging allegation made last week by the chairman of the Northern Ireland Conservative party and its prospective parliamentary candidate for North Down that the Secretary of State, by initiating talks between unionists and nationalists, provided the greatest possible encouragement for the murderous IRA campaign. Will the right hon. Gentleman bluntly refute the despicable accusation that those taking part in the talks are responsible for the deaths of innocent people at the hands of the IRA?
The hon. Gentleman knows well his opponent, the Conservative prospective parliamentary candidate. I enjoy my conversations with that gentleman as much as I do those that I have with right hon. and hon. Members.
As to strand 2—the north-south strand—of the talks to which the Secretary of State referred, the new Taoiseach announced that articles 2 and 3 would be on the table, and we all understand that. He said also that the Government of Ireland Act 1920 would be on the table. I studied it carefully this monring, better to understand what is involved. What has the Taoiseach said about that aspect that we can consider?
Under the terms of my statement to the House of 26 March 1991, which set in motion the talks that we held, it is open to any party to raise any issues—including constitutional issues—that it considers relevant. However, the outcome of the talks will depend on securing agreement, and all concerned accept the principle that any change to Northern Ireland's status as part of the United Kingdom would come about only with the consent of a majority of the people who live there.
Is the Secretary of State confirming by that last statement that the union can be negotiated only by the House, the people of Northern Ireland and Her Majesty's Government—and that that matter is no concern of Mr. Reynolds or of the foreign state to the south of Northern Ireland? Is the right hon. Gentleman confirming that today? My hon. Friend the Member for Belfast, East (Mr. Robinson) and I understood that the basis of the talks was to try to secure a replacement for the Anglo-Irish Agreement and to make arrangements to safeguard the administration of Northern Ireland within the United Kingdom.
At last night's meeting, the Taoiseach confirmed his Government's continuing commitment to the Anglo-Irish Agreement, article 1 of which contains a clear statement of Northern Ireland's constitutional status.
Is the Secretary of State aware that the Opposition welcome the statements made by the Prime Minister and the Taoiseach at last night's meeting, on the future progress of talks between the two Governments, and that Northern Ireland will be high on their agenda —as it will on the agenda of the Labour Government? We are pleased that Northern Ireland party leaders agreed to meet to discuss the possibilities of progress. Does the Secretary of State accept that the Opposition hope very much that, after years of violence and despair, a political settlement will emerge, and that we will do everything in our power to achieve such an outcome, based on the three strands agreement?
The hon. Gentleman and I have had similar exchanges before across the Dispatch Box, when he has advanced that bizarre and extraordinary hypothesis. I agree that the hon. Gentleman has supported the talks as they are conducted at present. If the hon. Gentleman's extraordinary and bizarre hypothesis were to come to pass, I would—as I have said before—be supportive of his efforts.
Small Firms
5.
To ask the Secretary of State for Northern Ireland what recent representations he has received from the Northern Ireland business community in connection with small firms.
Since the beginning of the year, I have continued both to meet and to correspond with a wide cross-section of the Northern Ireland business community. Among the issues that we have addressed have been a number of particular concern to small firms.
Further to the point made by my hon. Friend the Member for Ryedale (Mr. Greenway), I pay tribute to the Minister's work in supporting industry and business in the Province. Does he agree that one of the best ways of breaking down violence and lessening the sectarian divide is to encourage enterprise and initiative? Am I right in saying that Northern Ireland has weathered the recession better than any other part of the United Kingdom? If so, is not that due partly to the Government's support for small firms?
I thank my hon. Friend for his kind comments. The fact that Northern Ireland has weathered the recession better than any other region in the United Kingdom is due, to an extent, to the Government's policies; but it is due not least to the resourcefulness, intelligence and dedication of business people in Northern Ireland.
I was interested to learn this week that, whereas National Westminster bank—the parent of Ulster bank —had to make provision for £1·9 billion of bad debts, the figure for Northern Ireland was £6 million and that half the bank's profits came from Ulster bank. That shows beyond peradventure the current strength of the Northern Ireland economy. I am sure that, once the recession is over, it will continue to expand, and expand fast.Is the Minister aware that the Department of the Environment has undertaken a surreptitious exercise in an attempt to destroy the private sector taxi service in Belfast? If so, can he tell us how much money has been allocated to that exercise?
I know of no surreptitious exercise being carried out by my Department in regard to private taxi firms in Belfast. The hon. Gentleman and I have engaged in lengthy discussions about the problems faced by Belfast taxi drivers and I fully appreciate their fears and concerns. I shall continue to discuss, with the hon. Gentleman and with the taxi drivers, whatever measures need to be taken to ensure their safety and continue their employment.
In 1990–91, only 44 jobs were created in Northern Ireland. Will the Minister reconsider the wisdom of the policy change introduced a couple of years ago by the Local Enterprise Development Unit to endorse and support market research and development, rather than providing direct grant aid for job creation? That contradicted the philosophy, which proved correct, that small jobs—one or two-person start-ups—were the way in which to tackle, at least in part, the problem caused by the lack of inward investment.
Will the Minister address himself to LEDU's policy, and consider the reintroduction of direct aid for people starting up in business? I know that LEDU does a good job through its local enterprise development programmes, but will the hon. Gentleman consider returning to the previous policy?I really do not know where the hon. Gentleman found the "44" figure. Perhaps he is referring to some figures that were leaked a couple of weeks ago from the Industrial Development Board for Northern Ireland—a reference to 44 inward investment jobs. That figure turned out to be wrong: at least another 350 jobs have already been announced, involving no financial assistance. I hope that, within the next few weeks, several hundred more jobs will be announced by the board.
That has nothing to do with LEDU. The key to the success of a small business lies in the skills and professionalism of its management, technicians and staff. LEDU is trying to ensure that small businesses have the marketing experience, the exporting know-how and the managerial capacity that they need in order to get going. The Government are not about to hand out dollops of money so that inexperienced people can buy complicated equipment that they then do not know how to use.I am sure that the Minister realises that small business is the backbone of industry in my constituency of Mid-Ulster. Will he tell the House and my constituents what further incentives he can provide to ensure that small businesses are created and the economic blight is removed from my constituency?
The hon. Gentleman pays rightful tribute to small business, describing it as the economic backbone of his constituency. I assure him that the Government's support for LEDU, and the money with which they provide it, continue year on year to match the needs of small business. I can reassure the hon. Gentleman that that will continue. I hope to be able to discuss it further with him in the not-too-distant future.
Internment
6.
To ask the Secretary of State for Northern Ireland what representations he has received calling for the introduction of internment without trial; and if he will make a statement.
The Government have received a number of representations calling for the reintroduction of executive detention. They have also received representations from those opposed to such a step.
The power to introduce executive detention remains on the statute book and is capable of being exercised by the Government. I shall not comment further, except to say that the consequences of such a step would need to be very carefully weighed.Does the Secretary of State agree that the re-imposition of internment without trial would deepen and intensify an already terribly difficult situation? Does he recall that last time this occurred there was an immediate leap forward in terms of killing? We would face that again. Those who are asking for that—many voices, including important voices, in Northern Ireland are asking for it—would create a situation for everybody in Northern Ireland that would be far worse than it is now and, God knows, it is bad enough at present.
The fact that the Government retained executive detention on the statute book by a free act last year is an indication that the Government believe it to be important that the instrument should be available. The hon. Gentleman referred to the last time it occurred. There are occasions—perhaps the only occasions when I feel a mild sense of despair in dealing with the affairs of Northern Ireland—when I fear that others assume that all events in Irish history will always repeat themselves exactly. That is not the case—and it is because it is not the case that we are making progress in the way that we are.
Will my right hon. Friend assure the House that he will discard no weapon at all in the fight against terrorism—including internment, if necessary? Should it unfortunately prove necessary, will my right hon. Friend make arrangements for it possibly to be introduced without notice and simultaneously after consultation with the Government of the Republic of Ireland?
By definition, the weapon has not been discarded, as it will remain on the statute book, with the renewal of the order, in terms of the life of the statute. Clearly and patently, if it were to be introduced, it would be introduced without notice. There have been commentators who have said that if it were introduced, it would be much more effective if it were introduced throughout the island.
Has the Secretary of State discussed the matter with the Government of the Republic of Ireland? Does he accept that internment would be the height of folly and would have no support at all from the Labour party? Will he also point out to those advocating such a foolish policy that they are merely diverting attention from the villainous crimes of the terrorists and, perhaps more importantly, from the enormous successes of the security forces and thus undermining confidence in the rule of law? The right hon. Gentleman has pointed out in the House that nearly 50 per cent. of people convicted of terrorist offences had no previous intelligence tracings in terms of involvement with terrorist organisations. Does he agree that always the best thing to do is to arrest, produce evidence, convict and put terrorists behind bars?
The only matters that I discuss with Irish Ministers in intergovernmental conferences under the Anglo-Irish Agreement are those which can be discussed under the rules of the agreement. It would be a mistake, however, to think that we do not cover extensively all the ground and territory that is available within those limits. As to the rest of the hon. Gentleman's question, I said at the beginning that I thought the less said the better.
Castle Court
7.
To ask the Secretary of State for Northern Ireland what assistance was given by his Department to traders whose businesses were disrupted by the Castle Court development in Belfast.
Following representations from local traders about the disruption to their businesses, rates on properties in the surrounding streets were reduced by up to one third. Belfast city council reduced rents in Smithfield market by a similar proportion.
Glowing remarks were made earlier about small businesses in Northern Ireland. I know that the Minister has met Mr. Thomas Lennon, whose business was seriously disrupted during the Castle Court development, as were the businesses of other small business men in the area. A rates reduction for a certain period is inadequate to compensate for the great disruption that was caused to people seeking to make a living in that area—people who do not have the wherewithal or the ability to use the court system against the Minister. Why does he not face up to his responsibility and see that adequate compensation is given to the people who suffered so badly during that development?
Mr. Lennon's rates were reduced by a third. The best news that Mr. Lennon can have is that the Castle Court complex now employs some 2,500 people. It has brought into that area of Belfast a vast number of new businesses and has revitalised that area of the town. The traders who trade around it can do nothing but benefit from the new multi-storey car park with 1,600 spaces. The best thing that could happen for Mr. Lennon and his friends would be if the military wing of Sinn Fein stopped trying to blow up Belfast.
Despite the major differences between the Conservative party and the Ulster Unionist party following the imposition by the Conservative party of the Anglo-Irish Agreement and partial Dublin rule through Stormont, will the Minister accept on a personal level that there is widespread respect throughout Northern Ireland for the contribution that he has made to the rejuvenation of Royal avenue in our capital city of Belfast? Does he recognise that it is one of the commercial miracles of Northern Ireland and is now envied by many areas in the United Kingdom? Should he not be with us in six weeks, will he leave a message for his successor to ensure the continuation of that economic miracle into York street and York road in the constituency of my hon. Friend the Member for Belfast, North (Mr. Walker)?
I am grateful to the right hon. Gentleman for his kind words. It will not stop at Belfast. It is spreading to Derry, Newry, Armagh, Carrickfergus and Ballymoney, and throughout the length and breadth of Northern Ireland. The people, the councillors and the business community of Northern Ireland are coming together to create their own economic future and to undermine the men of violence on either side. They know that their success will lead to the defeat of the paramilitaries. The people of Northern Ireland continue to need to be congratulated on their determination and resilience.
Hospital Waiting Lists
8.
To ask the Secretary of State for Northern Ireland what initiatives are being taken to reduce hospital waiting lists in Northern Ireland.
From 1 April this year, the vast majority of patients will be guaranteed admission to hospital within two years of being placed on a hospital waiting list. Special task forces have been at work in each board to deal with the longest waiting lists and I have set aside an extra £1 million this year and in each of the next two years to support their work.
I am grateful to my hon. Friend for that reply, which I am sure will be welcome to the people of Northern Ireland. I hope that there will be the same success in cutting waiting lists in Northern Ireland as we have seen in other parts of the United Kingdom. I know that my hon. Friend is aware that the waiting list for treatment of coronary disease has been a matter of concern in Northern Ireland. What action has he taken to deal with that specific waiting list?
My hon. Friend is right. Unfortunately, Northern Ireland suffers from one of the worst rates of coronary heart disease. Following completion of the £1·5 million extension to the cardiac care recovery unit at the Royal Victoria hospital at the end of last year, a fourth cardiac surgeon has now been appointed there. The new surgeon, a locum, will take up his post on 1 May this year for an initial period of one year. That will lead to an increase in the number of operations at the Royal. In addition, the Eastern and Western boards have already begun to buy in cardiac operations from Great Britain this year and the Northern and Southern boards are expected to do likewise shortly. I hope that the waiting list for cardiac surgery will reduce greatly over the next year.
Does the Minister accept that patients, irrespective of age group, should not have to undergo prolonged suffering, being fobbed off with medication from time to time when cardiac surgery is necessary? Will he urgently encourage all boards to purchase coronary artery bypass surgery and other cardiac surgery from Great Britain?
The hon. Gentleman is absolutely right and I agree with every word he says. Cardiac surgery has the longest waiting list in Northern Ireland, but every effort is being made to reduce it, including the purchase of operations in Britain. I believe that great progress will be made.
In considering hospital waiting lists, is my hon. Friend satisfied that all those who would benefit from renal replacement therapy are getting it and has he anything to announce about a possible new satellite dialysis unit for the Province?
I am grateful to my hon. Friend for that question. I am afraid that he is right: not everybody is benefiting from kidney replacement, because there is a shortage of kidney donors. We could probably carry out about 70 more operations a year if there were more donors. I therefore launched the donor card again last week. I hope that every hon. Member, and everyone in Northern Ireland, will carry a donor card; it is vital that people do so.
Hospital Trusts
11.
To ask the Secretary of State for Northern Ireland what assessment has been made of the adverse effect on maintaining and upgrading hospitals of the amount being spent in preparing hospital trusts.
It has always been made clear that the Government's reforms are not to be introduced at the expense of patient and client care. Additional funds have been made available for the purpose and, accordingly, the reforms—including the establishment of trusts—cause no adverse effects on the hospital maintenance programme.
The Minister's comments may be helpful in the House, but they will not allay the concern that has been expressed throughout Northern Ireland—for example, in Upper Bann—about the amount of money that is needed to deal with the problem of concrete cancer at Craigavon hospital. Will he acknowledge that even those who are trying to implement hospital trusts are concerned that the dead hand of bureaucracy, which has increased, is hindering their work?
The hon. Gentleman makes a serious point about concrete cancer and money will have to be found to deal with that in due course. I assure him that the money spent on the health reforms will lead to greater efficiencies and savings—its purpose is to improve patient care and to increase the number of patients treated—and it is extra to the maintenance programme. I am pleased to say that, as from yesterday, 11 new hospital and social service organisation units applied for hospital trust status in Northern Ireland. They recognise the advantages that will flow from trust status.
Will my hon. Friend confirm that NHS trust hospitals are treating many more patients than a year ago? Is it not perverse, therefore, that some people are suggesting that those hospital trusts should be wound up?
I thoroughly agree that hospital trusts are proving their worth, but the national health service in Northern Ireland is succeeding with trusts even before they have been established. The establishment of trusts will improve matters. The total number of in-patients in Northern Ireland, including day cases, increased by 9 per cent. last year. The total number of operations increased by 15 per cent. and the total number of new out-patients by 6 per cent. With or without trusts, Northern Ireland is succeeding in health care. Trusts will make that even better.
Roads Maintenance
12.
To ask the Secretary of State for Northern Ireland what plans he has to increase the funds allocated to roads maintenance in the next financial year.
It is planned to increase funding for the operation and maintenance of roads, and associated bridges, in the 1992–93 financial year by £3·2 million to £65·3 million.
Does the Northern Ireland Office keep a record of unadopted roads not covered by bonds? What progress has been made in bringing those roads up to condition?
I think that the hon. Gentleman's colleague, the hon. Member for Antrim, North (Rev. Ian Paisley) came to see me about one of the cases to which he refers. All I can say is that the giving up of bonds on unadopted roads is not a matter with which I deal daily, but I shall certainly consider the cases that the hon. Gentleman brings to my attention and see what can be done.
Is the Minister aware that when the Unionist party governed Northern Ireland it concentrated heavily on developing the roads only in the eastern part of Northern Ireland? It did an outstanding job there, but the state of roads in the western part where there are areas of high unemployment such as Derry, Tyrone and Fermanagh—as exemplified by the Derry to Strabane road —are still in need of urgent development. Will the Department give priority to the development of those roads in future planning?
I sympathise with the hon. Gentleman's point. I assure him that the highest priority will be given to developing those roads, within the budget by which we are currently constrained.
Security
13.
To ask the Secretary of State for Northern Ireland if he will make a statement on the security situation.
I refer the right hon. Gentleman to the answer I gave earlier today to the hon. Member for Sheffield, Attercliffe (Sir P. Duffy).
In view of the statement made by the Chief Constable of the Royal Ulster Constabulary that terrorist movements can be destroyed very effectively from within, will the Secretary of State consult his right hon. Friend the Prime Minister to ensure that the full weight of the intelligence services is brought to bear on all terrorist movements within the United Kingdom?
In explaining that my hon. Friend the Minister of State is not present to answer questions because he is doing duty in the Province, I give the right hon. Gentleman an absolute assurance of the commitment of the intelligence services and of their relevance in Northern Ireland today.
Prime Minister
Engagements
Q1.
To ask the Prime Minister if he will list his official engagements for Thursday 27 February.
This morning I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.
Will the Prime Minister come out of his ivory tower across the road, put his photo calls on hold and face up to his responsibility for the past 13 years of Government mismanagement, which has culminated in the worst economic crisis since the 1930s? How long must we go on, how many more jobs are to be lost and how many more families are to be dispossessed of their homes? Will the Prime Minister now put it to the test through the ballot box and let the people decide on his record?
It is the hon. Member who is wrong. We grew throughout the 1980s better than any other major European country except Spain: we received the highest growth in manufacturing productivity of any Group of Seven country and faster growth in business investment than any other G7 country except Japan. By contrast, the hon. Gentleman might bear it in mind that Labour's plans for an extra £37 billion a year and policies of higher taxation, higher inflation and higher interest rates would drive this country into perpetual slump.
Q2.
To ask the Prime Minister if he will list his official engagements for Thursday 27 February.
I refer my hon. Friend to the reply that I gave some moments ago.
Does my right hon. Friend agree that higher taxes and minimum wages would put up the costs of British businesses, making them uncompetitive and costing them jobs? Does he agree that such twin torture is the very last thing that British business needs at the moment?
My hon. Friend is absolutely right. Only the Labour party could plan to cripple industry with both a national minimum wage and substantial tax increases when trading conditions are so difficult. Let me give my hon. Friend a quote:
Those are not my words—they were the words of the Leader of the Opposition. If that is what he thinks, he should withdraw his tax plans and withdraw his minimum wage plans and do so today."If our costs rise more rapidly than others' costs, particularly German costs, then British producers lose markets at home and abroad."
Does the Prime Minister recall saying that a
When the right hon. Gentleman wrote that, did he think that he would end up making exactly that "dishonest and absurd" promise himself?"promise … to cut taxes AND increase public expenditure … is dishonest and absurd"?
It is quite staggering to everyone who listens to the right hon. Member for Islwyn (Mr. Kinnock) how terrified he and his party are of tax cuts. He still thinks that tax cuts are immoral. The Labour party has opposed every tax cut that we have introduced and now it threatens to raise taxes if we cut them. The right hon. Gentleman wants people to let him spend their money rather than spending it themselves. Labour opposes tax cuts when the economy is growing and when it is not.
The Prime Minister heads the Government who have imposed the biggest tax burden in British history. Perhaps he will now try answering the question. The Government have promised to increase public expenditure and are promising to cut income taxes. Is that not, in the Prime Minister's own words, truly a "dishonest and absurd" promise?
If the tax burden is so high, why does the right hon. Gentleman propose to increase it still further? When it was pointed out to the right hon. and learned Member for Monklands, East (Mr. Smith) that his taxes would rise, the right hon. and learned Gentleman seemed surprised: what the right hon. and learned Gentleman said, in effect, was that taxes under Labour would "only" rise higher than those in any other G7 country—lower, perhaps, than taxes in Albania, but higher than those of all our competitors.
Will the Prime Minister, in the last couple of weeks left to him in that office, try answering the question? Does he not recall that he has promised to increase public expenditure, to cut taxes and to balance the budget? His promises do not add up. He was right—[Interruption.]
Order.
The Prime Minister has made all those promises. He was right: those promises are dishonest—[Interruption.] I am quoting the Prime Minister, and he will hear this again—[interruption.]
Order. Let us have an end to this pointing across the Chamber.
Even deliberate disruption will not stop the country hearing this. The Prime Minister has described promises to cut taxes and raise public expenditure as "dishonest and absurd". He was at least right about that —and right about the Government who are making such promises.
In the 1980s we did cut taxation and raise public expenditure. The right hon. Gentleman makes an absurd point. Under the Labour Government, borrowing averaged more than 6 per cent. of national product; since 1979, it has averaged not 6 per cent. but less than 2 per cent. Before the right hon. Gentleman starts to give lectures on borrowing, he should get his facts right. In one year under Labour, borrowing reached a crippling 9½ per cent.—the equivalent of £55 billion today. That was the Labour party's half decade of debt and now they plan another £37 billion worth of expenditure. Which would it be: £37 billion of extra taxes or £37 billion of extra expenditure?
Q3.
To ask the Prime Minister if he will list his official engagements for Thursday 27 February.
I refer my hon. Friend to the reply that I gave some moments ago.
On the eve of the first anniversary of the Gulf war, will my right hon. Friend join me in expressing our gratitude to our armed forces, our commitment to the independence of Kuwait and our determination to ensure that Saddam Hussein and his generals comply with all international sanctions or suffer the consequences?
My hon. Friend is quite right. The whole country is proud of the role that our armed forces played in the liberation of Kuwait. The way in which Saddam Hussein still behaves is unacceptable to us, to the United Nations and to the international community, and we shall continue to keep pressure on him.
Is the Prime Minister aware that something far more valuable than the woolly citizens charter was brought before this House recently—a Bill to improve the rights of disabled people—but was talked out by Conservative Members? Will he now undertake to rescue the Bill? Or is this yet another example of the Government and their supporters talking up human rights in theory and knocking them down in practice?
The right hon. Gentleman has done a great deal during his period in the House for disabled people and everyone in the House admires him for what he has done, but he must know that there have been dramatic improvements in recent years in the scope, range and value of benefits and in the number of disabled people who receive them. No doubt there is still more to do, and it will be done in due course, but the right hon. Gentleman ought not to deny what has been done.
Q4.
To ask the Prime Minister if he will list his official engagements for Thursday 27 February.
I refer my hon. Friend to the reply that I gave some moments ago.
Does the Prime Minister recognise that, because of privatisation, the water companies are spending £28 billion on improving water quality, including schemes in west Norfolk to upgrade drinking water and clean up our beaches? Is he aware that renationalising water would cost the taxpayer £8 billion and that the whole of this investment programme would be put at risk? Is that really what the Labour party wants?
I suspect that it is. My hon. Friend makes an excellent point. Yesterday, Labour's spokesman made the point that nationalising water was a priority—yet another priority—which would cost £8 billion. There was no sign of where the money will come from, and no sign of any advantage from the policy just sheer blind dogma.
With British industry burdened by record debt and Britain's trade deficit at its highest for a year, will the Prime Minister explain why tax cuts which will suck in more imports are right while public investment in the kind of things that Britain needs for the future is wrong?
There was a time in the history of the Liberal party when it trusted people with their own money and believed that they could make their own decisions. I note that, yet again, the Liberal party is aligning itself with the Labour party on social and taxation matters. The whole country will note that, too.
I am sure that the Prime Minister will join me in expressing the utmost admiration for the Australian people and the great commonwealth of Australia. Will he therefore do his best to defuse the present unhappy situation and assure the people of that great continent that, although they may be on the other side of the world, they are close to the hearts of the people of the United Kingdom?
I will certainly undertake to do that. I agree entirely with my hon. Friend on that matter.
Wallsend
Q5.
To ask the Prime Minister if he will visit Wallsend.
I am making plans for a series of visits to all parts of the country and hope to return to the north-east in the midst of those plans.
I would like the Prime Minister to visit Wallsend because he visited the neighbouring Conservative-held constituency and saw the destruction arising from the Meadowell riots as a result of 13 years of Thatcherism. The Prime Minister would be most welcome to visit the Wallsend part of North Tyneside where he would have an opportunity to visit Swan Hunter and see a dedicated work force, a dedicated management and, above all, the pride of the people in Wallsend in building and refitting ships for the Royal Navy. He would also learn about a series of problems, the main one of which is the unfair subsidies to ship building companies in the European Community which are handicapping the British ship building industry in terms of merchant shipping orders.
The hon. Gentleman makes a fair point and I have considerable sympathy with what he says about that. The Government's plans for the future naval fleet, including those recently announced for amphibious forces, will provide excellent opportunities for Swan Hunter to bid to obtain more orders. On the subject of equitability across Europe, our aim is to establish that and competitive conditions for all United Kingdom ship builders as soon as possible at national and international levels. We shall certainly keep up the pressure to achieve that, in the interests of Swan Hunter and many other fine firms in the United Kingdom.
On his way to Wallsend, will my right hon. Friend visit the north-west of the United Kingdom, and the borough of Macclesfield in particular? If he does, he will find an area ready to respond to the sound foundations of the economy that he and the Government have established.
I am grateful to my hon. Friend for his very warm support. I had the opportunity to visit the north-west on Monday, where I found a good deal of buoyancy and confidence in the future of the north-west and of the country as a whole.
Engagements
Q7.
To ask the Prime Minister if he will list his official engagements for Thursday 27 February.
I refer the hon. Gentleman to the reply that I gave some moments ago.
Does the Prime Minister not have a guilty conscience about his role as an ex-social security Minister? Does he remember the period after 1985 when he came to the Dispatch Box and abolished the death grant and took away maternity grant and income support for 16 and 17-year-olds, while all the time pensioners were losing £14 a week? What is all this claptrap about a classless society and a citizens charter? The pensioners need more than that —and not that load of hypocrisy from the Prime Minister.
If the hon. Gentleman wants to know about claptrap, he should listen to what he has just said. If he examines the record, he will see that for people in need I dramatically increased the amounts available for the death grant.
Business Of The House
3.32 pm
Will the Leader of the House please give us the business for next week?
The business for next week will be as follows:
MONDAY 2 MARCH—Until seven o'clock, motion to take note of EC documents relating to asylum and immigration. Details will be given in the Official Report. Debate on the report from the Select Committee on Sittings of the House on a motion for the Adjournment of the House. Motion on the Church of England (Miscellaneous Provisions) Measure. TUESDAY 3 MARCH—Remaining stages of the Further and Higher Education Bill [Lords]. Proceedings on the Taxation of Chargeable Gains Bill [Lords], which is a consolidation measure. Motion on the Appropriation (Northern Ireland) Order. WEDNESDAY 4 MARCH—Supplemental timetable motion on and consideration of Lords amendments to the Local Government Finance Bill. Completion of remaining stages of the Transport and Works Bill. Remaining stages of the Offshore Safety Bill [Lords] and the Nurses, Midwives and Health Visitors Bill [Lords]. Motion on the Social Security (Disability Living Allowance) (Amendment) Regulations. THURSDAY 5 MARCH—Estimates day (2nd Allotted Day, 1st Part). There will be a debate on Yugoslavia. Details of the estimate concerned and the relevant Select Committee Report will be given in the Official Report. Debate on Northern Ireland affairs on a motion for the Adjournment of the House. At ten o'clock the Question will be put on all outstanding supplementary estimates and votes. FRIDAY 6 MARCH—Private Members' motions. MONDAY 9 MARCH—Second Reading of the Friendly Societies Bill. Debate on the report of the Accommodation and Works Committee in respect of phase 2 parliamentary building. The Chairman of Ways and Means is expected to name opposed private business for consideration at seven o'clock. The House will also wish to know that European Standing Committee 'A' will meet at 10.30 am on Wednesday 4 March to consider European Community document No. 8910/91, relating to common organisation of the market in the sugar and isoglucose sector.[Monday 2 March, Floor of the House
Revant European Community Documents
(a) 8810/91 Right of Asylum
(b) 8811/91 Immigration
Relevant Reports of European Legislation Committee
(a) HC 24-x (1991–92)
(b) HC 24-x (1991–92)
Wednesday 4 March, European Standing Committee A Relevant European Community Document
8910/91 Sugar and Isoglucose Sector (Court of Auditors Special Report No 4/91)
Relevant Report of the European Legislation Committee HC 24-vii (1991–92)
Thursday 5 March, Estimates Day (2nd Allotted Day, 1st Part), class II, vote 2, Foreign and Commonwealth Office: other external relations, in so far as it relates to Yugoslavia.
Relevant report: First report from the Foreign Affairs Committee, Session 1991–92 (HC 21): "Central and Eastern Europe: Problems of the Post-Communist Era"].
On the business for Monday—the sittings and conduct of business in the House—will the Leader of the House take time to explain why he has apparently advised the Commissioner of Customs and Excise not to answer questions when giving evidence before the Select Committee on Trade and Industry in the inquiry into the supergun affair? Perhaps the right hon. Gentleman will confirm whether that is indeed the case, as that gentleman said. What has the Customs and Excise to hide in that inquiry? Is it not rather odd for the Leader of the House himself apparently to be undermining the work of Select Committees of the House? May we have an explanation of those events, please?
May we express disappointment that the Leader of the House has not provided either a Government Supply day next week or an Opposition Supply day to debate Britain's abysmal trade performance? He must surely be aware of the appalling deficit of almost £800 million in January, with Britain's trade in the depths of the longest recession for more than 50 years. Does that not demonstrate beyond doubt the depths to which the Government's economic mismanagement has brought the British economy? Should we not have an opportunity to debate that next week? I thank the Leader of the House for acceding to our requests to have next week's guillotined debate at a more appropriate time—on Wednesday in prime time—than the time that he originally intended? Will he ensure that the Secretary of State for the Environment, his right hon. Friend the Member for Henley (Mr. Heseltine), comes to the House, and that when he talks about what he described as the "Tory tax"—the poll tax—he explains why this year average poll tax bills will be about £50 more than the Secretary of State for the Environment suggested that they would be—and why people are still paying an extra 2·5 per cent. VAT on their expenditure subject to that tax? May we have an explanation of those matters from the Secretary of State for the Environment next week? Last week I asked the Leader of the House to give us a guarantee that the House would have the normal time to debate the Budget when it is introduced on 10 March. Will he assure us that the Budget debate will not be cut short and guillotined because of the Government's 9 April general election programme? May we have that assurance —yes or no?I am happy to deal with the first point now, because the hon. Gentleman has got it all wrong. It would have been very helpful if the hon. Gentleman had checked his facts. I must say that I am very dubious about many of his charges, given how wrong he is on that one. The Customs and Excise official asked my office for guidance as to what the Government's response was to the Select Committee on Procedure recommendations in relation to prosecution authorities' answers in front of Select Committees. My office referred him to an official who gave him the information, which is publicly available, about the Government's response to the Procedure Committee's remarks. That is all that happened. The hon. Gentleman made an absolute meal out of it and got it totally and completely wrong. It makes one wonder about the other charges that he makes.
As for the point about the trade figures, of course it will be possible to discuss the economic situation, yet again, soon. We shall be happy to do so. The hon. Gentleman will know that the figures for the past three months show that the balance of payments deficit is broadly in line with the quarterly average for last year, and that the underlying trade performance is good and improving. Export volumes in the past three months were up 3·5 per cent. on a year earlier, despite the slowdown in world trade. Manufactured export volumes are also up by 3·5 per cent. over that period and exports to the European Community are 4 per cent. higher. On the same basis, total imports are up just 1 per cent. So we would be happy to debate that matter. As for the hon. Gentleman's third request, as he knows, I always try to arrange business as much as possible in ways that are suitable to both sides of the House. He made a point about the community charge. Once again, the Opposition are peddling figures which have no basis in fact. The real figures for community charge increases this year will include an element for those who did not pay their community charge. And who encouraged many people not to pay? It was Opposition Members and many Labour councillors around the country. On the hon. Gentleman's final point, Mr. Speaker, you urged me and others to concentrate on the business for next week. As the hon. Gentleman knows, his final point was not about next week's business. But I shall be happy to deal with it in next week's business statement.rose—
I refer again to what the Leader of the House just said. Let us deal with next week's business, please.
Will my right hon. Friend find time next week for a debate or, failing that, a statement on the problem of itinerants, new age travellers and gipsies? Can we have some action?
I am aware of my hon. Friend's concern and that of many of my hon. Friends about that matter, and I share it. I know that my hon. Friend took the opportunity of raising the matter in the House on 12 December on the Adjournment. I am also aware that he recently met my hon. Friend the Minister for Housing and Planning to consider the matter. The Government are certainly aware that there are difficulties with the operation of the provisions of the Caravan Sites Act 1968. A review is under consideration. I assure my hon. Friend that that work is proceeding with all due pace. However, I am not sure whether we shall be able to make a statement next week.
As a former Fisheries Minister, the Leader of the House will know that for some time many of us have pressed the case for a decommissioning scheme to be introduced by the Government. Can he confirm reports that an announcement to that effect is imminent? Will the relevant Minister come to the House next week to make that statement?
Could the Leader of the House also secure the attendance of a Minister to respond to early-day motion 129?[That this House recalls the special arrangements made by the Government to increase benefits to pre-1973 war widows; notes that beneficiaries of the armed forces pension scheme who were invalided from the service prior to 1973 do not benefit from the improvement made to that scheme introduced in 1973 in the same way that pre-1973 war widows did not benefit until recently; and therefore calls upon the Government to take immediate action to remedy this situation and upgrade armed forces pensions payments to those former servicemen who left the services prior to 1973, particularly those who were invalided from the services and suffered disability in the service of their country.] The motion calls for equality of treatment in terms of pension for those invalided out of the armed services before and after 1973. In recent months the Government have shown common sense in relation to compensation for haemophiliacs who contracted HIV. Previously they did so for war widows widowed before and after 1973, allowing proper treatment for them. Surely those who suffered disability in the service of their country deserve equal treatment too.On the second point, as the hon. Gentleman rightly recognised, the Government introduced special payments for pre-1973 war widows in recognition of the view widely held in Parliament and in Britain at large that they were a unique group for whom exceptional treatment was appropriate. The position on pre-1973 war disability pensioners is somewhat different, and it is not considered that similar special action is justified.
On the first point, as the hon. Gentleman probably knows, the Government are considering the conservation issues which are raised as a result of various discussions in the European Community. I am not yet in a position to say when conclusions will be reached. When they are reached, I shall certainly consider how that might be made known to the House.May I thank the Leader of the House for receiving my colleagues the leader of the Social Democratic and Labour party, the hon. Member for Foyle (Mr. Hume), and the leader of the Ulster Unionists, the right hon. Member for Lagan Valley (Mr. Molyneaux), and for listening carefully to the representations made to him that there should be a debate in the House on the affairs of Northern Ireland following the Downing street meeting that we had with the Prime Minister? May I thank him on behalf of the people of Northern Ireland for giving time on Thursday for that important debate?
I am grateful to the hon. Gentleman and to hon. Members opposite for raising that matter with me. It is an important debate. He is right to say that it follows the Downing street talks with my right hon. Friend the Prime Minister. I am pleased that further initiatives have followed those talks. I considered it right to respond immediately to their request for a debate. I wish that I could have given longer, but there is a lot of pressure on the House next week. I thought it right to respond to that request for an immediate debate, and I am glad to have been able to do so.
I join the hon. Member for Antrim, North (Rev. Ian Paisley) in expressing our appreciation to the Leader of the House for the speed with which he responded to the joint request by the three leaders in Northern Ireland, as that will be the first time in the life of this Parliament that a major debate on the situation in Northern Ireland will take place. May I express the hope that all parties will show their concern for the fact that that is the major human problem facing this Parliament by being present and taking part in the debate?
I thank the hon. Gentleman. As he knows, we give a great deal of time to Northern Ireland issues in the House, and have done so in recent weeks, but this debate is rather different and very special. It follows the initiatives that have been taken recently in the light of my right hon. Friend the Prime Minister's discussions at Downing street with the hon. Gentleman and others. It is an important debate and I am sure that as many people as possible will wish to be here. However, the hon. Gentleman will recognise that the debate will be at a time when many hon. Members will expect to be back in their constituencies. However, I agree with him and I am glad that we have been able to find time for that important and wide-ranging debate.
Would the Leader of the House consider an urgent request from me to try to rearrange business next week to give us the chance to debate education philosophy, given that the Opposition wish to pass a sentence of death on the grammar school, the high school and the city technology college in my constituency? If they had their way, we would end up with an education philosophy which would give only the rich a choice in education.
I agree entirely. I should have liked to find time next week, and I hope that we shall find time not long afterwards. My hon. Friend is right to say that that is the Opposition's single distinctive contribution on education. I cannot think of anything more deleterious to increasing opportunities, the range of choice, and so on. They would abolish all the opportunities for greater variety and improvement of standards which have been introduced through city technology colleges, the assisted places scheme and grant-maintained schools, and they would abolish existing grammar schools. My hon. Friend is right that that means that opportunities for people from lower income households to take advantage of that range of choice would disappear.
Will the Leader of the House find out whether the Secretary of State for Trade and Industry noticed the statement last week by Alan Nightingale, chairman of the Apparel, Knitting and Textile Alliance, drawing attention to a large number of methods that other countries are using either to prevent our textiles getting into their countries or to aid theirs getting into our country? Will he also find out whether the Secretary of State would like to make a statement about that to try to save some of the many thousands of jobs which are in danger? He might even let us know what is happening with the GATT talks.
As the House knows, the Government are keen to see a conclusion to the GATT talks for reasons that we have often debated. So far as the textile industry is concerned in that respect, for the time being, as the hon. Gentleman knows, pending a final outcome of the GATT negotiations the existing multi-fibre arrangement has been rolled on for another year. I shall raise his first point with my right hon. Friend the Secretary of State for Trade and Industry.
Will my right hon. Friend provide an opportunity next week for us to talk about welcome recent Government action on youth crime, especially the measures dealing with joy riding and with bail offenders, and other matters? Will he give the House an opportunity to consider the recent case in which, as a result of the Children and Young Persons Act 1969, a judge in Birmingham was unable to give more than a one-year sentence to a 15-year-old boy who killed a 24-year-old woman? The judge said that that had resulted in an injustice.
As my hon. Friend correctly says, in addition to the many measures of previous years, the Government have introduced further measures in the current Session of Parliament to deal with issues relating to crime—such as the measure dealing with offences committed while on bail, and the Aggravated Vehicles Taking Bill. We shall continue to do that despite the fact that the Opposition often turn out to be soft on crime. I can assure my hon. Friend that we shall continue to ensure that proper protection is given to our citizens.
Before next Thursday, may we have some highly secret information published as to how many people are on electoral registers in England and Wales? The registers have been published for Northern Ireland, and provisional figures have been given for Scotland, but we do not have the figures for England and Wales. We need to have them if we are to decide whether an urgent debate is required on the position that they reveal.
The hon. Gentleman has raised that matter on many previous occasions and I have made clear the exact position. I understand that the hon. Gentleman is so concerned because he feels that his own position will be at risk in the forthcoming general election. On the information requested, the electoral registers will be published in good time.
In view of the extraordinary revelations published in The Sunday Times about the long-held beliefs of the Leader of the Opposition, does my right hon. Friend believe that it would be helpful to the electorate to have a debate on the role of the Leader of the Opposition and his fitness for office, bearing in mind that leopards who protest that they have changed their spots are almost always kidding?
My hon. Friend has made his point. I cannot promise a debate next week, but some of the complete reversals of principle and policy undertaken by the Leader of the Opposition in recent years will be the subject of much discussion in the period ahead.
The Leader of the House will be aware of the expectation that an order would come before the House to allow the Welsh Grand Committee to meet in Cardiff to debate the constitutional future of Wales—an issue which is particularly relevant in view of this week's opinion poll showing a 2:1 majority in favour of an elected parliament for Wales. What has happened to the order? Will it be debated next week? The Secretary of State for Wales suggested that the Welsh Grand Committee would meet in Cardiff. Is that likely, or is someone holding it up?
My right hon. Friend the Secretary of State for Wales said that he would be happy for a meeting of the Welsh Grand Committee to discuss those matters, and that included its meeting in Wales. That requires a debatable Standing Order and the pressures on business next week are great.
Is my right hon. Friend aware that there is some disappointment on the Conservative Back Benches that the debate next Monday on the sittings of the House report will be taken on the Adjournment? That will mean that many hon. Members, who believe that the intention of that report is about giving Back Benchers more time, will not be able to vote on an amendment. Such an amendment would be directed at the Leader of the Opposition, who uses 40 words when four will do and abuses Prime Minister's Question Time twice a week, which keeps us out.
The latter point is not a matter for me. On my hon. Friend's first point, he will know that the report of the Committee on working hours, under the chairmanship of my right hon. Friend the Member for Westmorland and Lonsdale (Mr. Jopling), covered a wide range of ground and went much further than the simple point raised by my hon. Friend about giving more time to Back Benchers. It is also concerned with other issues as to how we handle the business of the House. It seems to me that the report contains so many recommendations that the House will wish to consider very seriously that it is not possible in the time frame of next week to have a debate on substantive proposals. In view of the wide interest in the report, it is right to have a general debate to establish the general reaction to it as quickly as possible. That is why I arranged the debate for next Monday.
When the Leader of the House takes time off from considering D-day—declaration of poll day—will he arrange a debate next week, if not sooner, or have a statement made so that we may learn why the Home Secretary and his Ministers of State are increasingly interfering in the decisions of the parole board, such interference having risen from 3 to 30 per cent. in the past five years?
Not next week.
Will my right hon. Friend consider having a debate next week on the subject of personal savings so that we may know the attitude of the Labour party to the taxation of those savings?
I think we know that there are proposals from the Labour party effectively to increase taxation on a large number of savings. I welcome the opportunitty to highlight that as much as possible, and I hope that we shall have that opportunity before long.
Is it normal practice for a Minister to send a reply to a parliamentary question to a prospective parliamentary candidate? I ask that question because an article appeared in my local paper stating——
Order. That seems rather wide of the business for next week.
Will the right hon. Gentleman arrange for a statement to be made next week about an article in my local newspaper stating that the answer to a parliamentary question of mine had been sent to the local prospective Tory candidate? The article stated that the candidate had said that she had seen the reply. Is it normal practice for parliamentary answers to be sent to candidates?
I do not know the local paper to which the hon. Gentleman refers, and I do not know of the report, so I have to say that I know nothing about the issue.
With the callous plundering of pension funds by that heartless monster Robert Maxwell, may I ask if my right hon. Friend is aware that my constituents who are today in receipt of pensions have been told that their pensions can be guaranteed only until the end of March and that beyond that date payment is in doubt? With two thirds of the pension fund stolen, and with doubt as to which part of the pension fund moneys belong to which pensions, may I urge my right hon. Friend to arrange for a debate to take place next week, or for a statement to be made, so that we may discuss the matter? My constituents are worried sick. In particular, we should be told whether the new section 58B in schedule 4(2) to the Social Security Act 1990 will be invoked.
I cannot immediately recall section 58B of that measure. I do not carry in my head the detail of every clause of every piece of legislation, but if it is the section which deals with guaranteed minimum payments in the event of pension funds not being able to pay——
It deals with creditors' preference.
That relates to the eventual situation regarding the protection of pensioners. As for the issues relating to the Maxwell pension funds, my hon. Friend will know that a number of investigations are going on now. I fully understand his concern for the pensioners. We shall have to await the outcome of the investigations before considering what action, if any, is required. The basic minimum pension arrangements are already in place.
Will the Leader of the House reconsider his decision not to allocate a half Supply day to the Scottish National party, despite the clear request of the right hon. Member for Lagan Valley (Mr. Molyneaux) on behalf of all minority parties? Is he aware that that would have been the ideal opportunity to discuss Scottish matters, particularly the Government's apparent change of heart on the decommissioning scheme which, despite the obvious cynicism involved, will be widely welcomed by hon. Members who represent fishing communities? What does the right hon. Gentleman think will be the reaction at the quayside in Scotland for a Government who have kicked that vital industry from pillar to post for the past six years and now, six weeks before a general election, decide to change course?
I disagree absolutely with the hon. Gentleman's remarks about the Government's position in respect of the fishing industry. As he knows, the main problem facing the European Community and fishing Ministers has been the decline in stocks and the consequent need for conservation. Unless that is tackled, there will be an even more difficult future for our fishermen. It is right for the Government and the Council of Ministers to concentrate on that aspect. As someone who has been involved in that question over the past six years, I assure the hon. Gentleman that enormous efforts are made to ensure that the fishing industry gets the best possible deal in the negotiations, and the Government have frequently been given credit for making them.
As to the hon. Gentleman's demand for a Supply day, I am—as I said earlier—bearing that request in mind, but it is obvious from next week's programme that the House has a great deal of business to complete. I have been giving Supply days fairly regularly, and I thought it right to respond to the request by leaders of Northern Ireland parties to provide time to debate Northern Ireland next week.I urge my right hon. Friend to reconsider his decision, which he explained in reply to my hon. Friend the Member for Berkshire, East (Mr. MacKay), concerning Monday evening's Adjournment debate on the report of the Select Committee on Sittings of the House. Is it not the case that the House has an incomparable opportunity before Parliament is dissolved to benefit from the wide advice of many senior right hon. and hon. Members who are about to retire and who, looking back over decades of experience, know how our proceedings could be improved? If we do not take that opportunity, is there not a risk that the Committee's admirable report is likely to gather dust, and that nothing will be done to improve our procedures?
No, I certainly hope that that will not be the case. I established the Committee because I was anxious to make progress. The right hon. and hon. Members to whom my hon. Friend referred, who have given many years' service in the House but will not be standing for Parliament again, were able to put their points to the Select Committee—to which I pay tribute again as it completed an enormous amount of work in a short time. Monday evening's debate will provide an opportunity for right hon. and hon. Members to express views not only about the report's general tenor but about its specific recommendations.
Will the Leader of the House arrange a debate next week on the increasing tendency among health authorities to impose charges in national health service hospitals? Is the right hon. Gentleman aware that Nevill Hall hospital, Monmouth, proposes to introduce car parking charges for its staff, out-patients, those visiting the sick, and hospital volunteers? Will the House have an opportunity to debate a practice which my constituents consider to be a gross violation of the principle of a free health service, and one that is indicative of the managerialism that is ripping the soul out of the NHS? The public could then decide whether they want a Government who believe increasingly in charging the sick, those who visit them, and those who care for them.
Those matters have been much discussed in the House and outside, and many of the scare stories have been disposed of. The hon. Gentleman speaks of "managerialism" as though it were something to be deprecated. I am sure that he understands that more effective use of the ever-rising NHS expenditure in directing it at patient care benefits patients themselves. It is indicative of Labour that it dismisses that aspect so easily, and explains why Labour is unable to present proposals for reforms that will ensure better use of ever-increasing resources of the kind that the Government have implemented.
May we debate sport next week? As my right hon. Friend knows from his successful visit yesterday to my constituency, Manchester's Olympic bid is very much at the heart of the regional issue. Such a debate would give me an opportunity to record how pleased we are that the Government will back that bid, and how good that will be for the region's development.
I very much enjoyed my visit to my hon. Friend's constituency yesterday—and, indeed, my visit to Manchester as a whole. Before I left, the responses that I was getting told me that yesterday's announcement by my right hon. Friend the Prime Minister would be widely welcomed.
May we have a debate next week on animal welfare? Does the Leader of the House accept that stuffing 650 letters into hon. Members' postboxes is no substitute for a debate and a statement from the Minister of Agriculture, Fisheries and Food? In the first place, such action constitutes an abuse of the House.
If we had a debate, the Minister could explain why he sent around a limp letter full of excuses about animal welfare, but voted against the Wild Mammals (Protection) Bill—along with 12 other Cabinet Ministers—in order to dish the legislation and protect fox hunters, allowing them to go around loosing their bloodlust on defenceless animals. It is time we had a debate to expose the hypocrisy of those Ministers and the Government.As the hon. Gentleman knows, the fox-hunting issue is not as he puts it. I hope that he will consider what foxes do to other animals. As for animal welfare, I would welcome a debate on that whenever it can be fitted in, because I believe that the Government's record on animal welfare issues is very strong. We have placed great emphasis on such issues, and we have led in the European Community in that regard. My right hon. Friend the Minister of Agriculture, Fisheries and Food has played a notable part in the process.
Can my right hon. Friend confirm that a most important Adjournment debate on the shipping industry is to take place next Thursday? It will make particular reference to Dover's ferry industry, much of whose case may be put during it. The debate is extremely timely—five days before the Budget. Can my right hon. Friend confirm that a Treasury Minister will be present, as well as a Transport Minister?
I cannot confirm which Minister will be dealing with that Adjournment debate, but I can certainly confirm that such a debate will take place on the important issue to which my hon. Friend has referred. I am well aware of the active interest that he takes in the issue: it is, in fact, his own Adjournment debate.
Is the Leader of the House aware that the south-east of Scotland is alive with rumours that the Government will be making a statement about the A1 between Edinburgh and Newcastle? Can he confirm that such a statement will be made at the Dispatch Box, rather than an announcement being made in a clandestine, underhand way? May we have statements from both the Secretary of State for Transport, on the English side, and the Secretary of State for Scotland, on the Scottish side—on the same day?
I shalll have to consider both the timing and whether a statement would be appropriate; I shall also have to consider whether two Ministers should deal with the matter. I will look into it.
Will my right hon. Friend consider arranging a debate next week about the security of hon. Members' offices, both here and in their constituencies? He may be aware that my office was broken into earlier this week, and that valuable computer evidence was stolen. Does he agree that such a debate is necessary to nail the lie that has been put about—primarily by Labour Members and, in particular, by the hon. Member for Neath (Mr. Hain)—that a Conservative dirty tricks brigade was responsible? That would be understandable in my case, but it might not be in the case of other hon. Members.
I am grateful to my hon. Friend for raising the matter. He has enabled me to say that I do not see any need for such a debate because the allegations made by some Opposition Members are totally without foundation.
Will the Leader of the House find time next week to debate the future of the 999 service? It has emerged in the past few hours that British Telecom plans to hive off the service to an independent agency. That will have a massive impact on the quality of service —[HON. MEMBERS: "Why?"] I will explain why. Such a move will pose a massive threat to the quality of service. At present, the 999 service rides on the back of the general operator service. People can drop their general operator work and respond immediately. The proposal also involves shutting down many telephone operator centres, as a result of which those operating the 999 service will have no local knowledge.
This constitutes a severe threat to people's lives and security. Dogma is involved here. The aim is to ensure that British Telecom satisfies the City's objective by cutting its staff in post figures, rather than protecting the public. The Government should make a statement about the matter next week.
I think that the hon. Gentleman has made a speech about the matter. I had hoped that he would say something about the allegations that he made about the computer issue. As I have said, those allegations are without foundation. I shall now reply to what the hon. Gentleman has just said. I know nothing of this report. I shall have to look into it.
Will my right hon. Friend find time next week to debate the chaotic traffic position on one of Britain's arterial roads, the A5, which runs past my constituency? Is he aware that there have been serious accidents on that road? The fact that it has not been improved between Hinckley and Nuneaton means that jobs are being lost in the area, because land by the A5 in Hinckley cannot be developed. Will he deal with this matter with some urgency, please?
I will take up the point with my right hon. Friend the Secretary of State for Transport. However, I am sure that my hon. Friend will acknowledge that there has been a substantial increase in the road-building programme all over the country.
Although we welcome next Thursday's debate, can the Leader of the House assure us that the Prime Minister will take part in the debate so that, following his speech in Scotland last week, he can demonstrate an equal concern for the union with Northern Ireland and also show how we can have a form of decentralisation that is common throughout the United Kingdom? Secondly, on Tuesday's appropriation debate—
Order. In business questions, can we have one question only, please?
Then I shall save the second one for later.
I am sure that the hon. Gentleman will not think that simply because one of my right hon. Friends does not participate in a debate it means that he is not intensely interested in the question. My right hon. Friend the Prime Minister has made speeches on the Scottish devolution issue but does not take part in Scottish Grand Committee debates on the subject. I think that it is unlikely that my right hon. Friend will take part in the debate next week, but I have already discussed it with him, following the request that I had from the leaders of the three parties in Northern Ireland. I discussed it with my right hon. Friend before deciding on the business for next week, and I can tell the hon. Gentleman that my right hon. Friend was extremely keen to have that debate. As I say, it follows from the inititive that he took in Downing street.
Will my right hon. Friend arrange a debate on post offices for next week? It would enable me to say how well post offices operate throughout the borough of Ealing, generally speaking, and to draw attention to the proposed closure of the Church road post office, Northolt, which would be extremely serious and inconvenient for pensioners and for mothers with young children, among others. The House needs to discuss this very important issue. That post office should be saved.
My hon. Friend is extremely assiduous in bringing the concerns of his constituents to the attention of the House. I am sure that he will find ways of doing so himself.
May we have a statement on the £55 million that the Government have offered to Manchester in respect of its bid to hold the Olympic games there in the year 2000? That debate would have to take into account the fact that when Manchester made its previous bid the present Prime Minister, who has now agreed to that money, was Chancellor of the Exchequer and earlier Chief Secretary to the Treasury. He was the man holding the purse strings then, and he refused to give Manchester a single penny piece. Now he stands on the doorstep of No. 10 gloating about it. Are not the Tory Government guilty of a bribe a day to keep the voters at bay?
It is typically churlish of the hon. Gentleman to take that position in relation to the Government's decision to give very substantial support to Manchester's bid.
Could we have a debate next week on NHS fund-holding practices? My right hon. Friend may not be aware that the Marshlands practice at Higham in my constituency has been a fund-holding practice since last April. Since then it has vastly increased the treatment that is given locally, not least by bringing in consultants, it has cut its waiting lists and it is giving better value for money. Does my right hon. Friend not think it important that during such a debate we could highlight the fact that the hon. Member for Livingston (Mr. Cook) is so impressed by such an effective piece of NHS reform that he wants to scrap it and put that practice under the remote NHS bureaucracy?
I am grateful to my hon. Friend. I want to find every opportunity to highlight the benefits that general practitioner fund holding is bringing to GPs and their patients. My hon. Friend has done that well today. I am sure that his constituents will observe the benefits that are being brought to them—benefits that the Labour party would wish to take away.
Will the Leader of the House agree to a debate next week on early-day motion 715, tabled on an all-party basis, dealing with the pursuit of peace in Somalia?
[That this House welcomes the news that, under the auspices of the United Nations, an agreement has been signed between leaders of the two warring factions in Southern Somalia; is concerned that fighting appears to be continuing and calls on the British Government and the international community to redouble efforts to achieve a lasting peace in Somalia; draws attention to the fact that the parties who are involved in the fighting in the south have no claim, separately or together, to represent the people of Northern Somalia; calls on the international community to recognise that the people of the North have expressed a wish for independence as the Republic of Somaliland; notes that there are very close links between the North and the Somali communities in Britain; notes also that the North suffered for years in a hidden war under the regime of ex-president Barre during which time families, relatives and friends of British Somalis were killed or fled the country; notes that there has been relative stability in the north for the past yearunder a de facto government which includes the Somalia National Movement and other northern groups; and calls on the British Government and the international community to do all they can to ensure that the representatives of the North are involved in peaceful discussions aimed at achieving a peaceful and long-term settlement by agreement, including settlement of the request for recognition by the Republic of Somaliland in the North.] Will the Leader of the House accept that this is given special and increased urgency because of a letter that I received today from the Under-Secretary-General of the United Nations, Mr. James Jonah, in which he refers to recent consultations in New York with what he describes asThat omits the interim Government of the north, who wish independence as the Republic of Somaliland. The north is the area with which the Somalis in Britain have contact and where they have many relatives and friends who have suffered through the hidden war over the past 10 years that has left many dead and many refugees. Does the Leader of the House agree that we should debate this matter and ensure that the House, the international community and the United Nations bring all parties to the table to try to achieve peace? Does he agree that that would be better than the danger of the south being led by one faction and the north being left out of the peace deliberations? I am sure that the Leader of the House and the Minister of State, Foreign and Commonwealth Office, will agree with the facts as I have described them. Can we have an opportunity to raise the issue publicly?"the two Somali factions—Interim President Ali Mandi Mohammed and General Mohammed Farah Aideed."
I do not see an opportunity for such a debate in Government time next week. It could be undertaken in ways that are available to hon. Members to raise topics. I am not aware of the letter to which the hon. Gentleman referred, but I have seen the early-day motion. As he knows, the Government welcome the United Nations initiative on Somalia. I understand that a conference is to be held in Mogadishu later this month to which all factions will be invited.
May I join those who have asked my right hon. Friend the Leader of the House to arrange an early debate on the national health service? Is my right hon. Friend aware that a recent visitor to the Manor House hospital in my constituency described it as a unique hospital with a very high quality of care for patients, many of whom are members of the TUC?
Is not it a double standard to say that private health care is good for members of the Trades Union Congress and bad for the rest of us? Is my right hon. Friend aware that the visitor who displayed those double standards was none other than Mrs. Glenys Kinnock?I agree with my hon. Friend that that shows the Labour party's hypocrisy on this issue. It devotes so much energy to condemning those who pay for their hospital treatment through hospital subscriptions, thus adding to the resources of the health service, as do many at the hospital to which my hon. Friend referred. Such people also help hospitals to raise substantial sums, a process which the Labour party also criticises. I understand that Mrs. Kinnock was praising that fund raising at the hospital last week. It seems that there is one law for TUC members and another for everyone else.
Many people will be disappointed that the Leader of the House did not announce a debate next week on the future of Kuwait, bearing in mind the fact that tomorrow is the anniversary of its liberation. The Leader of the House will know that many people from this country and others died or suffered to free Kuwait but, now, a year later, 1,053 Kuwaitis are still being held by Saddam Hussein. I have spoken to families who were prisoners of war and had to leave relatives behind when they returned to Kuwait, so they know that they were alive.
In addition, the Kuwaiti Government, whom we saved and restored, are discriminating against members of the New Democracy Movement there and are refusing to allow observers to ensure that the elections are fair. I hope that we can have a debate about that, because we need to expose the hypocrisy of the Kuwaiti Government and we need to achieve true democracy as the United Nations intended.It would not be right for me to comment in business questions on the issues that the hon. Gentleman has raised, but I recognise the importance of having a debate on Kuwait at some point. The difficulty is simply that many important issues are being raised, and at the request of the Select Committee on Foreign Affairs we shall discuss Yugoslavia in next week's estimates debate. It is just a question of if and when one can fit a debate in.
May I first express regret that the Leader of the House lowered himself by replying to what was obviously a planted personalised and despicable attack on the spouse of a politician? I do not think that that speaks volumes for his confidence about the forthcoming election.
May we have a statement next week on the Government's attitude, especially the Prime Minister's, to national stadiums? We welcome the fact that £55 million may be made available for a stadium in Manchester, but is the Leader of the House aware that meetings have been held and repeated requests made to people up to and including the Prime Minister, by myself and colleagues from Lanarkshire, for a commercially viable proposition for a new national football stadium in Lanarkshire, which would service all sports, would create 3,000 jobs and would require finance, private sector led, of less than £20 million—less than half the amount needed for Manchester? May we have a statement to explain why that cannot be provided, as it would create jobs and an unparalleled resource in Scotland? Only £3·5 million is offered for the patch-up job that is to be done on Hampden.I do read newspapers, and I was aware of the report to which my hon. Friend the Member for Hendon, South (Mr. Marshall) referred. [Interruption.] I will tell the hon. Gentleman why. I think that it speaks volumes for my dislike of hypocrisy. It was perfectly right to draw that issue to the House's attention.
On the hon. Gentleman's second point, Manchester made a specific bid for the Olympics and it was right for my right hon. Friend the Prime Minister to consider it. I am well aware of the working party on Lanarkshire and of the significant sums that are being proposed and spent in the area. I agree that it is right to do so because of the particular difficulties that have been created by the need to restructure the Lanarkshire economy.Pension Rebates Review
4.22 pm
With permission, I wish to make a statement on the outcome of the regular five-yearly review on the level of national insurance rebates for people contracting out of the state earnings-related pension scheme—SERPS—and on our plans to build on the huge success of personal pensions introduced in 1988 in extending individual choice, opportunity and ownership.
In respect of the contracted-out rebates, I have today laid the relevant reports by the Government Actuary and myself, with a draft amending order and regulations, to establish the level of rebates for the period beginning in April 1993, which need to be set within the present financial year in accordance with the Social Security Pensions Act 1975 and the Social Security Act 1986. As the House knows, employment which is contracted out of SERPS attracts a rebate on class 1 national insurance contributions. For the five years from April 1988 to April 1993, it is set at 5·8 per cent. of earnings between the lower and upper earnings limits—2 per cent. on the employee's contributions and 3·8 per cent. on the employer's. The rebate is based on the cost to salary-related occupational pension schemes of providing the guaranteed minimum pension which such schemes must provide as the condition of contracting out. An additional 2 per cent. incentive is payable from the national insurance fund to people in occupational pension schemes which newly contract out of SERPS between 1988 and 1993 and to people who contract out of SERPS in favour of a personal pension. That 2 per cent. incentive ends in April 1993. The level of rebate required to provide guaranteed minimum pensions in contracted-out schemes is, naturally, falling, because the cost of the transitional arrangements that we introduced for older employees as part of our 1988 pensions reforms reduces in each new quinquennium as those people reach pension age. In the consultation paper issued last autumn, the Government Actuary indicated his initial view that the appropriate rate for 1993 to 1998 would be 4·68 per cent. In his final report to me, following extensive consultation, he has concluded that the range of uncertainties caused by the European Court of Justice Barber judgment concerning equal treatment in occupational pension schemes, which will take some time to resolve, make it more sensible for the rebate level to be based on the costs for the first three years of the period only, which he assesses at 4·77 per cent. I accept his view and his recommended figure, subject only to rounding the figure to 4·8 per cent. Accordingly the regulations laid today provide for a rebate at that level from April 1993. I propose that it should be split 1·8 per cent. for employees and 3 per cent. for employers. In my statement to the House about the Barber judgment on 26 June last year, I said that we would be consulting the pensions industry and other interested parties on the implications of equal treatment for the current arrangements for contracting out. Those consultations are under way, and it is clear that changes will be needed to the basis on which pension schemes can contract out of SERPS. In considering what those changes should be, we intend now to give particular consideration to the scope for moving from flat-rate rebates to rebates related to age, at least for personal pensions and possibly also for other contracted-out schemes. Decisions on how to achieve equality in state pension age, on which I published a discussion paper in December, will also have an important bearing on the many complex and detailed issues which will need to be resolved. In carrying forward this work, our aim will be to ensure a sound basis for the continued operation and development of salary-related schemes and to expand further the new opportunities for millions of people created by our changes in the 1980s, which opened the way to contracted-out money purchase schemes and personal pensions and gave greater scope for individuals to enhance their retirement provision with additional voluntary contributions. Personal pensions in particular have proved an outstanding success. More than 4·6 million people have chosen to save for their retirement by contracting out of SERPS in that way, taking advantage of the choice, flexibility and portability which such pensions can provide. Many of them would not have had access to an occupational scheme, and they also include many who would not previously have planned ahead for retirement in this way. The flat-rate nature of the rebate has, however, meant that the advantages of personal pensions have been greater for younger people than for older ones. As I said earlier in my statement, we intend to examine the scope for age-related rebates more generally. Meanwhile, however, we have decided that it would be right to take an early step in that direction in relation to personal pensions. Accordingly, we propose that from April 1993 there should be an age-related additional rebate of 1 per cent. over and above the basic 4·8 per cent. contracted-out rebate for personal pension holders aged 30 or over. This is a further important step in encouraging the development of personal saving for retirement. Coupled with our firm and continuing commitment to the basic rate retirement pension, protected in value, it will, I believe, be welcomed in the House and outside.Will the Secretary of State tell the House what he pointedly omitted to tell it? What is the cost of the 1 per cent. bribe for private pensions which he is announcing for people aged 30 or more who will be given age-related rebates? Will he confirm that the bribe will cost about £600 million over five years, which is equivalent to more than £350 for every pensioner on income support?
Will the Secretary of State also confirm that the whole package will cost £7·1 billion of taxpayers' money now in order to save about £4 billion in reduced benefits at some stage in the next century, so the net cost is more than £3 billion, which is equal to £300 for every pensioner in the land? Why did not the right hon. Gentleman's statement acknowledge that the National Audit Office and the Public Accounts Committee have strongly condemned—[Interruption.] I notice that Conservative Members do not like to be reminded of the degree of the bribe being given by the Government in this pre-election period or of the losses to ordinary pensioners. Will the Secretary of State confirm that the National Audit Office and the Public Accounts Committee have strongly condemned him for wasting nearly £9·5 billion of public money in the past five years in order to save only £3·5 billion in reduced benefits, and for losing another £800 million in tax revenue? Will he confirm that he was also castigated for so depleting the national insurance fund by those manoeuvres that he has had to transfer nearly £2 billion of national insurance expenditure to general taxation, and that that is the equivalent of about 1½p on the basic rate of tax? Is not it clear that, not only in the Budget but 12 days beforehand, the Government are hell-bent on bribing people with everyone else's money—including that of the poorest people? The Government say that they believe in choice, but is not it clear that they choose sweeteners for a select group of private pensioners at the expense of nearly 2 million of today's pensioners who are left in poverty? How can the Secretary of State justify spending £600 million on private pensions when an ordinary single pensioner has seen his or her pension cut by more than £17 a week, compared with Labour's earnings formula? Why does the right hon. Gentleman feel that it is so necessary to bribe people to join private pension schemes? Is it because private pensions cannot compete with occupational pensions or with SERPS? Why does not the right hon. Gentleman treat SERPS, occupational pensions and private pensions on a fair and equal basis, so that people can choose the best value for money, rather than being manipulated into the Government's preferred ideological option? Before the Secretary of State asks what Labour will do, I shall tell him that we shall abolish the current 2 per cent. bribe, and that we shall not implement the new I per cent. bribe in April 1993. Our priority is today's pensioners, who are in far greater need and who have been treated so shabbily by the Government for the past 13 years. The Government's package is an abuse of public funds. It bribes people to join expensive and highly risky private pension schemes and cheats today's pensioners of money that they need. They have a right to that money, and we shall ensure that they get it.The hon. Gentleman's last remarks did not surprise me in the least. They were absolutely in line with his party's relentless hostility to almost every extension of choice and ownership, whether in housing, in shares or, as now, in pensions. More to the point, I should like to know what the hon. Gentleman means by saying that he would abolish the 2 per cent. incentive. That is due to come to an end at the end of the forthcoming financial year in any event. He could abolish it, and change the status quo, only by taking away commitments that have already been made and taken into account in existing pension contracts, thus retrospectively disturbing arrangements that people had already entered. I hope that the hon. Gentleman will wish to clarify that matter at some stage.
I cannot confirm, because I do not fully recognise some of the figures that the hon. Gentleman used, what he said about the cost to the national insurance fund. However, I can tell him that as a result of the rebate which I have announced—the basic rebate from April 1993, combined with the disappearance of the 2 per cent. incentive and the addition of the 1 per cent. age-related addition for people over 30—there will be a substantial reduction in expenditure on rebates from the national insurance fund, arising principally, of course, from the reduction in the basic contracted-out rebate. The last point on which I want to touch goes to the heart of the hon. Gentleman's comments and his hostility to the rebate system. The figures that he uses persistently include the basic contracted-out rebate as well as the personal pensions incentive——That is what the National Audit Office says.
I heard that. I wonder whether the hon. Gentleman has read what the Institute of Fiscal Studies —usually one of his favourite bodies—said last week about the NAO report:
the basic rebate introduced by the Labour Government in the mid-1970s. The institute continued:"The majority of the cost of personal pensions arose from the cost of the contracted-out rebate"—
If, as I suspect, that is the hon. Gentleman's view, he should come clean. He will not be happy until there is no alternative to state provision and whatever the state decides to provide."An obvious corollary of the NAO's argument that the cost of personal pensions was excessive is that the cost to the National Insurance Fund of rebates to occupational pension schemes is also excessive."
rose——
Order. I know that this is an important statement, but we have an equally important debate on Welsh affairs today. I will allow questions to go on until 4.55 pm; then we really must move on because I will have to put a limit on speeches in any event in the Welsh debate.
Is not it clear that personal pensions represent one of the greatest successes of the Government, and that as a result of their introduction millions of our fellow citizens enjoy the prospect of a very good pension? That has been brought about by the incentives that are so deplored by the Opposition. My right hon. Friend will find that there are many Conservative Members sitting behind him who will warmly endorse what he has done in the past and even more warmly endorse today's news that the 1 per cent. rebate will apply on an age-related basis.
Finally, is not it clear from what the hon. Member for Oldham, West (Mr. Meacher) said that the millions of people who have become holders of personal pensions over the past few years will wish to know whether his remarks imply that there is to be some retrospective action by an incoming Labour Government which would not only show Labour's well-known opposition to the concept of personal pensions but put in jeopardy the pensions which have been built up over the past five years?Taking my hon. Friend's last point first, it is certainly true, if the words of the hon. Member for Oldham, West (Mr. Meacher) meant what they appeared to mean, that they would involve depriving average personal pension holders of about £5 a week of contributions to their personal pensions which they have already committed.
Bribery.
I take that sedentary observation as confirming what I say—it is precisely the commitment made in the last shadow Budget. We all wait with bated breath for the next shadow Budget.
I am grateful for my hon. Friend's earlier observations, which were entirely true. We have enabled millions of people who were not in occupational pension schemes to embark on a new form of saving for their retirement, a form which gives them greater flexibility and choice. What is more, there are some signs, admittedly from limited survey information, that about 40 per cent. of those people are putting more than the rebate into their personal pension schemes. In other words, this has had an important effect in stimulating personal saving for retirement.The Secretary of State knows that I do not share the hostility emanating from the Opposition Front-Bench spokesman, the hon. Member for Oldham, West (Mr. Meacher), to private pensions. But may I repeat the question that the hon. Gentleman sought to ask? What is the Government Actuary's assessment of the cost of the 1 per cent. additional rebate? I well understand the reason for trying to include an age-related element, but, without the 1 per cent., would not that have been equally possible by using a figure of less than 4·8 per cent. for those under 30 and more than 4 per cent. for those over 30?
The estimate of the cost to the national insurance fund of the 1 per cent. additional rebate that I have proposed is about £175 million a year. Against that, savings of the better part of £2 billion a year will arise from the other changes which I announced today—including my confirmation of the fact that the 2 per cent. incentive will disappear in April 1993. I hope that that is reasonably clear.
On the wider point that the hon. Gentleman raised, I reiterate that I am grateful for his general support for extending choice and opportunity in the way that we have sought to do.If the growing number of elderly people are to be assured of a decent pension in future without placing an impossible taxation burden on the rest of the work force, bearing in mind that pensions are paid for on an annual basis, is not it essential that personal pension provision is increased and is not it right that the Government have come forward with this welcome statement, which amounts not to a bribe but to a much-needed bonus for self-reliance and self-provision?
Yes. I obviously very much agree with my hon. Friend. The fact that 4·5 million of our fellow citizens have taken advantage of those opportunities, together with many more in company-operated money purchase schemes—of which 20,000 have been created since 1988 —shows that that is meeting a widespread wish for people to make more choices for themselves and to have more say over their own provision for retirement. That will be welcomed generally almost everywhere, except among Opposition Front-Bench Members, as a sensible way to proceed.
As someone who is committed to free choice—whether to belong to one's trade union at GCHQ, to buy one's own council house or to have control over one's pension assets—may I return the Secretary of State to the costs of the proposals? What was the cost in respect of the national insurance fund of the rebate during the first five years and what is it in the second five years? Or, in this pre-election period, is the statement that there is no such thing as a free lunch being put to one side?
I have given the figures requested by the hon. Member for Roxburgh and Berwickshire (Mr. Kirkwood). The House must focus on the extent to which, as a result of the kick-start that we have provided through the incentive introduced in 1988, there has been a massive expansion in the number of people saving for their own retirement and, as I said a moment ago, many people now put in more money than they receive from the rebate itself. I have no doubt that that is in the interests of the development of a sound, long-term structure for pension provision, for reasons that were made clear in the supplementary question asked by my hon. Friend the Member for Chichester (Mr. Nelson).
Does my right hon. Friend agree that, when those people who are thinking of contracting out consider the exchanges that have taken place in the House today, they would do well to bear in mind that the hon. Member for Oldham, West (Mr. Meacher) was quoted in The Star on 28 August 1991 as saying that there was no way in which any political party would commit itself to a common retirement age of 60 because the cost would be enormous? Does not that show that when the hon. Member for Oldham, West has a choice between common sense and party dogma, at the end of the day, he will always opt for party dogma?
I can confirm that. If we had required confirmation other than from me—and I suppose that people might expect me to confirm that—that was all too clear in the response of the hon. Member for Oldham, West to my statement this afternoon.
Is the Secretary of State aware that the erosion and undermining of SERPS have caused immense damage to those who will retire in future and will undoubtedly mean that, despite what he has said, many people will have to live in poverty unless —as we hope—a Labour Government reverse what he has done? Is there not a lesson to be learnt from what has happened with the Mirror pension scheme which is, admittedly, an occupational scheme? Theft and swindle in that scheme have meant that many pensioners simply do not know whether they will have a decent retirement. What has happened could happen elsewhere in occupational pension schemes or in the kind of schemes to which the Secretary of State referred.
I do not accept either of those points. The changes that we made to SERPS in 1988 were a necessary part of putting pension provision on a basis that was sound for the future and that was likely to be affordable by future generations. The worst thing one can do in respect of pensions is to make promises, upon which people rely, about what would be paid in 30 or 40 years time, but which prove to be unsustainable.
If I understood the other part of the hon. Gentleman's question alright, where people are members of a contracted-out scheme whereby the undertaking is to ensure guaranteed minimum pensions, in the relevant circumstances such schemes are underwritten by the state.Does my right hon. Friend agree that, in the light of the appalling fraud perpetrated on the pensioners of the Maxwell-controlled companies, the case for personal pensions is stronger, because with personal pensions it is up to the individual pensioner to choose who manages that pension and in whom to place his or her trust?
There is certainly a wide range of advantages in money purchase schemes generally and in personal pension schemes in particular. The Government are trying to achieve, and have done so successfully, a wider spread of different kinds of opportunity for people to make provision for their retirement.
The Secretary of State will be aware that many of the assets of the pension fund of the Mirror Group are in the possession of the banks. Is he willing to order the banks to restore those assets, or will he let them get away with that bare-faced robbery?
The hon. Gentleman will realise that I have no power to order the banks to do anything. However, he will have noted the observations of some of the banks over the past few days. I cannot embroider on them or add to them.