House Of Commons
Monday 21 December 1981
The House met at half-past Two o'clock
Prayers
[Mr. SPEAKER in the Chair]
Private Business
British Railways (No 2) Bill
Order for consideration of Lords amendments read.
The title of this Bill was omitted from the Order Paper as originally printed, but not from the private business paper. I understand that corrected copies of the Order Paper have been available in the Vote Office since 10 o'clock.
Lords amendments agreed to.
Humberside Bill Lords (By Order)
Order for Third Reading read.
To be read the Third time upon Thursday 21 January.
Oral Answers To Questions
Energy
British National Oil Corporation And British Gas Corporation
1.
asked the Secretary of State for Energy when he expects to bring in the Bill dealing with the British National Oil Corporation and the British Gas Corporation that was foreshadowed in the Gracious Speech.
15.
asked the Secretary of State for Energy if he will make a further statement on his plans to transfer parts of the British Gas Corporation and British National Oil Corporation to the private sector.
The Oil and Gas (Enterprise) Bill was published on Thursday 17 December.
In order to refute some of the wilder misrepresentations about the Bill being made by the Opposition, will my right hon. Friend remind the House how he intends to ensure that control of Britoil always remains in British hands? Will he also tell us whether he proposes to sell any or all of the British Gas Corporation's oil interests to the highest bidder and, if so, whether he will give some preference to British companies?
The articles of association of Britoil will ensure that there can be no transfer of control into unacceptable hands. As I have already assured the right hon. Member for Leeds, South (Mr. Rees), the articles will be published in due course and the House will have an opportunity to discuss them then. The precise method of the privatisation of the British Gas Corporation's oil assets has not yet been decided, but I shall certainly bear in mind what my hon. Friend has said. As to the wilder misrepresentations of the Opposition, I am afraid that there is nothing that I can do to prevent the Opposition from being wild, and they become wilder every day.
Does my right hon. Friend agree that monopoly is not usually the best friend of efficiency and that the opening up of competition, particularly for industrial gas supplies, should be good news to industrial consumers and, in the long run, to domestic consumers?
Yes, indeed. My hon. Friend is absolutely right.
The Secretary of State knows our views about the Bill and he will hear them further on Second Reading and in Committee. Given the statutory and fiduciary duties of board members of the BNOC and the British Gas Corporation, will they be allowed to express their views?
Board members express their views to me. I had a private meeting recently with the entire board, with one exception, who was unable to be present.
Is it still the right hon. Gentleman's intention that 51 per cent. of the equity will be owned by private concerns and 49 per cent. by the State? Is it not true that a large shareholder, with a holding of, say, 15 per cent. or 20 per cent., could influence the conduct of the so-called Britoil and therefore that investment interest in the company, not control, is the argument?
The right hon. Gentleman is an expert in these matters, but he is slightly confused. A holding of 15 or 20 per cent. will not bulk large when the Government will be holding, at least initially, 49 per cent. Furthermore, I do not envisage holdings of 15 per cent. or 20 per cent. It is not a matter of shares being sold to what the right hon. Gentleman terms "concerns". The whole point is that the British people will hold the shares. It will be public ownership in the true sense of the term. [HON. MEMBERS: "Pension funds will buy the shares."] I am interested to hear that the Opposition are great opponents of pension funds. The House will note that. The whole purpose is that there should be the widest possible spread of ownership. That is not a vain or pious hope, but precisely what we have achieved in previous privatisation exercises, such as British Aerospace.
Order. May I express the pious hope that replies will be a little shorter?
In view of the rumours in the press, can my right hon. Friend confirm that he looks forward to the full co-operation of both the BNOC and the BGC boards during the passage of the Bill?
Yes. I hope and believe that I shall get the necessary co-operation from both the BNOC and the British Gas Corporation.
Will the Secretary of State explain exactly how privatisation will help the consumer? Does he not realise that the British Gas Corporation and the British National Oil Corporation have been highly efficient organisations? How his proposals will benefit the consumer and prevent the export of premium fuels to the Continent and elsewhere I do not know. Will the right hon. Gentleman explain the benefit to the consumer.
However efficient an organisation may be, there is always great scope for it to become even more efficient. Experience shows that competition leads to greater efficiency. The greater freedom of the private sector, the escape from the constraints of the public sector and its establishment on an equal footing with its competitors will be a great stimulus not merely to the efficiency of the upstream oil-producing part of the British National Oil Corporation to be formed into a separate independent British company—Britoil—but to its future growth and expansion. There are great opportunities. I shall not say more, because I sense the beady but entirely just eye of Mr. Speaker upon me.
Gas From Coal
2.
asked the Secretary of State for Energy what progress has been made in the research and development aimed at producing natural gas equivalent from coal; and if he will make a statement.
The British Gas Corporation is carrying out a major programme to develop technology for the manufacture of substitute natural gas from coal. I am satisfied with the progress being made.
There has been considerable progress, but is the Minister not concerned that the Government's restrictive financial attitudes towards public sector companies will have some effect on essential developments of this type?
Not at all. The excellent 20-year, £300 million programme in gasification at Westfield has not suffered in the manner that the hon. Gentleman states.
Is any research planned or taking place in the underground gasification of coal, which is being done in some countries?
Yes. Part of the work at the coal research establishment at Bretby is in situ gasification. I have pursued some of these researches in the United States.
Electricity (Cost)
3.
asked the Secretary of State for Energy what percentage of the retail price of electricity is currently attributable to the cost of coal.
The cost of coal burnt by the electricity supply industry in England and Wales in 1980–81 amounted to some 40 per cent. of its revenue from electricity sales.
I am obliged to my right hon. Friend for that reply. As there is a correlation between the prices of coal and electricity, are not two markets being placed at risk, especially if high wage claims are to be allowed? Will my right hon. Friend bear in mind the plight of the poor consumer, due to adverse weather conditions, and has he any proposals in mind to help him?
My hon. Friend is right about the first part of his question. As to the second part, the House will recall that last week I stated that I had asked for a review of the technical standards of overhead lines. The review will be headed by my Department's chief engineering inspector. I have also today asked the chairman of the Electricity Council to report to me urgently on the adequacy of the industry's procedures and methods for restoring supplies in severe weather conditions. I shall take what further action, if any, is necessary to minimise disruption in the light of those reports. I shall not deal with the details of the reports. I have placed in the Library a copy of the press release that gives the precise terms of reference. I pay tribute to those in the industry who have been working hard to put the situation right.
Should not the Secretary of State have made a statement at the end of Question Time so that hon. Members could question him? Does he not realise that last week he announced that no domestic consumers, other than those originally affected, would be cut off? Is he aware that some of my constituents have been cut off recently?
On a point of order, Mr. Speaker. The Secretary of State's answer had nothing whatever——
Order. Points of order are normally taken at the end of Question Time, unless the hon. Gentleman feels that it cannot wait. If it can wait, I shall be grateful.
I am obliged to you, Mr. Speaker, but the right hon. Gentleman's answer to the question seemed to bear no resemblance to the point that had been put to him.
Order. That is not a new experience in this place.
The direct answer to the hon. Member for Aberdare (Mr. Evans) who sat down before the point of order, if that is what it was, is that he is mistaken. Last week I said that at that time the numbers still without electricity had fallen to fewer than 30,000—a serious number, but a considerable reduction. [Interruption.] I am replying to the hon. Member for Aberdare who asked a question that Mr. Speaker allowed. It is right that I should answer. I stated at the time my hope that most would be reconnected within a day. Indeed, they were. Within a day—by Thursday 17 December—the number was down to below 500. All were connected pretty well by the end of the week. I realise now that, as a result of the weather over the weekend, the number has increased to about 1,500. I hope, weather permitting, that they will be reconnected by tonight.
Order. Future questions must be related to the question on the Order Paper.
When my right hon. Friend examines the relationship between the cost of coal and the supply of electricity, will he bear in mind the possibility of using in some crucial areas underground cable instead of above-ground cable so that, despite the high price of coal, the consumer may be assured of a reliable service in extreme weather conditions?
My hon. Friend has displayed all the ingenuity that the House has come to associate with him. I think that, to be safe, all I will say is that I have noted my hon. Friend's point.
Ingenuity is all very well, but many people are without electricity. Would it not be better to have a proper statement?
If the right hon. Gentleman had felt strongly about the matter and tabled a private notice question, I would have done my best to answer it. I hope that all those at present disconnected will be reconnected by tonight, weather conditions permitting.
Geothermal Energy (Eastleigh)
5.
asked the Secretary of State for Energy whether he is proposing to offer the borough of Eastleigh assistance in its efforts to develop geothermal energy for the borough.
My Department is prepared to consider proposals to assist feasibility studies, and to offer some help in kind. However, substantial financial assistance is unlikely because of the proximity of the site of the Southampton borehole.
I half thank my hon. Friend for that half reply. Will he give the same support to Eastleigh as has clearly been given to our neighbours in Southampton? If not, why not?
The Southampton geothermal project is the first of its kind in Britain since Roman times. It was right that considerable assistance should be given. It is difficult, with an inevitably limited research and development budget, to give assistance to a borehole only four miles away if the technology is the same as that used on the Southampton project. If there is any novelty in relation to the Eastleigh project, my Department will be prepared to consider any further representations that my hon. Friend may wish to make.
European Energy Policy
6.
asked the Secretary of State for Energy if he will now put forward proposals for a common European energy policy based on co-ordinated policies for the export and import of sources of energy.
19.
asked the Secretary of State for Energy what progress has been made towards achieving a common European Economic Community energy policy.
There is no realistic basis for agreement on a uniform and centralised energy policy for the Community, largely because of the substantial differences in energy resources and priorities between member States. But the Community does have common energy objectives, notably the plan to reduce dependence on oil and oil imports in line with the agreed energy policy guidelines for 1990. The October Energy Council under the United Kingdom's Presidency made good progress in elaborating Community energy policy in terms of a serious commitment by all member States to these common objectives.
Do not the objectives clearly stated by my right hon. Friend require effective means to carry them out, and does that not necessarily postulate a policy? As the United Kingdom, of all EEC countries, is the least dependent on imported sources of energy, do we not stand to gain more than they do from the adoption of common energy policies in this connection?
I know that my hon. Friend studies these matters closely and has done so for a long time, but I do not think that he is right in the conclusions that he seeks to draw from his premises. There can be and is cooperation and a common approach across a wide front, notably in reducing oil dependence, by the countries of the Community. However, that does not imply a common energy policy of a centralised nature, such as the common agricultural policy, nor is there any reason to suppose that other Community countries would be prepared to agree to a policy that would give a substantial benefit to one member country.
Is the Secretary of State aware that we note and support his reply to the hon. Member for Flint, West (Sir A. Meyer)? Will he confirm that no question arises from the new Bill of removing gas landing rights, which would mean the export of gas direct to Europe?
No. The right hon. Gentleman is quite right. That is an entirely separate matter.
Is it not extraordinary for the Secretary of State to say that there is only one common interest—oil consumption—between our friends in Europe and ourselves? What about research and development into alternative energy resources? What about the attitude to the importation of coal and many other matters that have affected us over many years in our discussions with our European friends? Are we to understand that the Government are abandoning the idea of trying to achieve a common energy policy?
These matters, too, do not betoken a common energy policy of the kind that some hon. Gentlemen have been advocating. There is co-operation and there is a joint research programme. I mentioned the agreement to reduce oil dependence as the most important item. There is, of course, a joint research programme. There is also developing agreement between Community countries on energy pricing principles. There is also developing agreement within the Community on arrangements which might be sensible in a so-called sub-crisis. If there is a shortfall of oil supplies, it will be less than 7 per cent. There are a number of matters on which we co-operate and have discussions, but that is not a common energy policy.
In view of the difference between our energy situation and that of our European partners, in the overall co-ordination of policies will my right hon. Friend bear in mind the example of the swan that did the opposite—lots of activity on the surface and serene inactivity underneath?
Yes, Sir.
Does not a common energy policy imply common price arrangements for energy within the Community? Will the Secretary of State publish a monthly tariff of European industrial energy prices to indicate to our manufacturers the competitive energy prices being charged in Europe?
The hon. Gentleman will be glad to know that he is barking up the same tree as I did—he may be embarrassed to know that—at the Energy Council on 27 October, when we managed to reach substantial agreement, which was later consummated at a meeting of another Council of Ministers, on a common energy pricing approach and, in particular, on the principle—I hate to use the term, but it is the one allowed—of transparency. That enables us to know one another's pricing policies and practices.
On a point of order, Mr. Speaker. In view of the unsatisfactory nature of that reply, I shall seek to raise the matter on the Adjournment.
Combined Heat And Power
7.
asked the Secretary of State for Energy what progress is being made with the combined heat and power projects in the cities, including Sheffield, designated for pilot schemes.
The lead consultants on the combined heat and power district heating feasibility programme expect to report in February 1982. My right hon. Friend last week gave his consent for the Fort Dunlop CHP scheme in Birmingham.
Will the Under-Secretary of State give us an assurance that, when the report is received, prompt and vigorous action will be taken on it, since money spent on combined heat and power will give a far better return in utilisation of energy resources than any nonsense about Sizewell nuclear power stations?
That was the burden of the hon. Gentleman's question two months ago. I tell him now, as I did on that occasion, that there is no necessary relationship between the increase in CHP and the need for nuclear power stations. I should not like the House to gain the impression that there is any question of delaying this project. We have followed the procedures set out in the Marshall report. As I said before, we expect this report to be available in February. We shall study it closely as soon as it is available, and we shall take the minimum amount of time to do so.
Why has the Department taken so long to make up its mind about the Fort Dunlop scheme?
That question, too, has been asked before. It is not correct to say that we have taken a long time. It was suggested that it had been before us since April 1980. That is wholly false. At that time, the scheme was different in many material particulars. Since it was only on 16 November 1981 that we were informed by the Midlands electricity board that it had given its approval to the scheme, I hardly think that it can be said that there has been any unnecessary delay.
Industry (Use Of Coal)
8.
asked the Secretary of State for Energy if he will take further steps to encourage the use of coal in industry.
The Government have taken positive action to promote the burning of coal by industrial users, but it is for the coal industry itself to convince customers of its long-term ability to provide secure supplies at competitive prices.
Is the Under-Secretary aware that, in spite of the increased saving in coal, the Government could do much more to help the National Coal Board? Will the hon. Gentleman do everything that he can to extend the coal-fired boiler conversion scheme to gas users, non-manufacturing industry, local authorities and non-boiler installations? Does he regard the present restrictions as inhibiting? Will he make the strongest possible representations to his right hon. Friends to extend the electrification of the railways, because that would make the biggest contribution to the use of coal? What has he done about these matters in any case?
I am sure that the hon. Gentleman will want me to draw what he said to the attention of the Department of Industry, which, as he knows, is in the midst of a re-examination of this scheme which, excellent as it is, has had a slow start. I am sure that any improvements will be welcomed. My Department is fully involved in the negotiations. I take his point and will draw it to the attention of my right hon. Friend the Secretary of State for Transport, but he may wish to examine more carefully the exact implications for coal of electrification of the railways.
Is my hon. Friend aware that I, too, am a long-standing supporter of the coal industry? Would it not be utter madness, now that the industry is doing well and the miners are earning good wages, for them to embark on a destructive coal strike and thus endanger the future prospects for that vital industry?
I acknowledge my hon. Friend's longstanding commitment to and involvement in the coal industry. All who share his wishes for the long-term success of the coal industry will remember what I said initially. Secure supplies at competitive prices are a crucial feature of the growing markets for coal—those industrial markets in which we hope coal's future will lie.
The Under-Secretary talked about a slow start for the conversion scheme. Is he aware that it has been a gigantic flop? The £50 million that the Chancellor of the Exchequer expected to spend in 1981–82 will be about £2 million. The number of conversions has been very small. Instead of continuing to review the situation, when shall we see action to get the conversion scheme off the ground?
It is always depressing to hear positive proposals greeted with such sourness. Considering those industrialists who are seeking to use coal, one might bear in mind the reasons and worries that make them not rush into a commitment to change to coal, even though, currently, there is a price differential of 40 per cent. to the advantage of coal over oil.
As my hon. Friend said, one of the main factors governing the amount of coal used by industry is its price. If this year's settlement with the miners is such as to increase the price of coal, will my hon. Friend assure industry that it will have free access to cheap coal by way of imports, and will he make sure that this can happen?
My hon. Friend seems to assume powers which do not already lie in the path of the Government. Industry is able to purchase coal from whatever source it wishes. At the moment it mainly purchases the cheaper British coal.
Does the Under-Secretary not accept what my hon. Friends have said? There is a real need for further Government action in this respect. Do we not have a chicken and egg situation in which there is a need for the coal industry to expand to meet the long-term market and that, to do so, there must be the short-term creation of a market for the industry?
As I said, the scheme proposed initially sought to add 2 million tonnes per annum to our coal burn. At the moment, industry uses about 10 million tonnes. Industrial market usage of coal by the end of the century could be 50 million tonnes. That is the size of the potential market. Security of supply and continued competitive prices to these non-monopoly industrial users will be the key to coal's success in these markets.
Will my hon. Friend confirm that the self-financing ratio of the National Coal Board is exceedingly low and that the entire mining industry is carried by the taxpayer? In view of that, will my hon. Friend make it clear to the National Union of Mineworkers that the board cannot carry a 24 per cent. claim?
Even my hon. Friend will not wish me to get involved in the detailed debates between the National Coal Board and the NUM. All that we in the House can do is try to ensure that the facts relative to the long-term secure potential of coal are available to the public at large.
Does the Minister agree that the coal industries of Germany and Great Britainn can supply the needs of the European Community in their entirety? Has the hon. Gentleman seen reports about imports of cheap American coal? Will he take steps to protect our coal industry, as Germany does to protect hers?
There are many facets to the hon. Gentleman's question. The long-term potential demand for steam coal in Western Europe is, I imagine, well in excess of what currently we can envisage producing from West Germany and the United Kingdom. No country in Western Europe is putting the amount of money that we are into long-term investment in the future of coal. The Germans are supporting a stagnant and declining coal industry compared with our expansion. Our future lies in competitive, not subsidised, coal for industrial usage.
Oil Exports
10.
asked the Secretary of State for Energy to what extent he expects the United Kingdom to be a net exporter of oil by 1 January 1982.
I estimate that for 1981 United Kingdom oil production will for the first time exceed the amount of oil consumed by between 12 million and 15 million tonnes.
In view of that happy news, can the Minister assure the House that we have enough reserves for our own use, whatever happens in the world of oil? What are our reserves at the moment, and what is being done to increase them?
The Government estimate that we shall be self-sufficient in oil throughout the 1980s. Our endeavour will be to extend that period. Present total reserves range between 2,175 million tonnes and 4,350 million tonnes.
Can my hon. Friend confirm that the present North Sea taxation regime does not exactly encourage exploration for oil? Furthermore, have we a depletion policy, and, if so, what is it?
My hon. Friend will appreciate that my right hon. Friend the former Secretary of State for Energy outlined the depletion policy that we were following in his statement to the House in July 1980. Since then nothing has happened to make us deviate from that announcement.
In practice is not the Government's depletion policy a combination of capricious taxation and arbitrary delays on the development of certain fields? That is the combination on which the hon. Gentleman has been working. When will he come to the House and produce a comprehensive statement on depletion policy?
I understand from that remark that the hon. Member wants a reduction in taxation on the oil industry.
No. I said that it was capricious.
The Government have been following an effective oil depletion policy. The suggestion that there has been an unnecessary holding back of annex B approvals, for example, is quite unfounded. One annex B approval has been held back—that on the Clyde field for the BNOC—and, since the date that it was held back, no other annex B approval application has been submitted to the Government.
Since British oil reserves will not last very long, can my hon. Friend give the House any assurance that the project for extracting oil from coal that is being developed at the Point of Air will not be held back through shortage of finance?
I assure my hon. Friend that progress is being made as he would wish.
Industry (Energy Costs)
11.
asked the Secretary of State for Energy whether he is satisfied that those industries in which energy accounts for a high proportion either of their outturn costs or any increase in such costs last year are able to compete on level terms with the industries of other industrialised countries.
Following Government action in the Budget, the November NEDC report has shown that United Kingdom energy intensive industries' energy price advantage, which in any case exists with some European countries though not with all, has diminished significantly. I am, however, still considering with the electricity supply industry the position of bulk industrial electricity users.
I thank my right hon. Friend for that reply and for the action being considered over electricity. However, is he aware that many industrialists placed in the position outlined in my question feel that, although the Government exhort them constantly to be more competitive, they still face barriers to competition largely of the Government's own making in terms of energy prices? What is the position, for instance, about the tax on heavy fuel oil, and when shall we see some action on the electricity bulk supply tariff?
The tax on industrial heavy fuel oil is a matter for my right hon. and learned Friend the Chancellor of the Exchequer, has indicated on a number of occasions the difficulties of moving in that area. As for the review of the bulk supply tariff, I expect to receive the final version of the report in the next few days. I am afraid that I cannot comment on it until I have received it and had an opportunity to study it.
There is plenty of information on this matter now and there has been much questioning in the House, but, in terms of what the Secretary of State said in his answer to the hon. Member for Bromsgrove and Redditch (Mr. Miller), when will something be done to alter the position adversely affecting industrial users?
As I have pointed out already, something was done in the Budget. Over the past year our energy prices have risen less than they have in other Community countries as a whole. We are now not uncompetitive across the broad management of energy prices. On gas, the NEDC task force report shows that in general our prices are 8 to 10 per cent. below those in Europe as a whole.
In response to an earlier question, my right hon. Friend rejected the idea of a common European energy policy. In response to this question, does he agree that it is at least necessary to have a common European taxation policy for energy and a common policy on Government subsidy of energy? Until my right hon. Friend does that, I cannot see how we have a free market.
My hon. Friend is right in his last statement. Clearly it is undesirable that countries should subsidise their energy. The energy-pricing principles agreement that the Community countries reached states explicitly that subsidies should be phased out.
The Minister said that gas prices were lower or that increases had been less in England than in other European countries. Is he not aware that industrialists in Leicestershire—parts of which both he and I represent—are furious at the increases in gas prices? They regard them as totally unrelated to the cost of producing gas and consider it wrong that they should be related, instead, to the cost of electricity.
Like the hon. and learned Member, I represent a Leicestershire constituency. However, the complaint that I hear most from industrialists to whom I speak is that they are unable to get the supply of gas that they would like.
Does my right hon. Friend accept the conclusion of the National Economic Development Council that there is still a substantial differential with regard to electricity prices? For example, in the paper industry there is still a substantial difference between the prices charged in the United Kingdom and those charged on the Continent. My right hon. Friend accepts that and finds it difficult to bridge the gap, will he at least consider sympathetically proposals for capital support schemes that involve major conversion and conservation measures, which could substantially help the industry through such difficult times?
My hon. Friend has exaggerated the position slightly. I do not wish to minimise it, but the discrepancy exists in France and Germany, rather than in other European countries. The discrepancy in France can be fairly readily explained, because, in addition to being endowed with fairly substantial hydroelectric power, the French had the sense to invest heavily in nuclear power. That provides a cheaper form of electricity and the French are bound to benefit from it. Remedial measures are under review, but I hope that the CEGB will develop in next year's bulk supply tariff the load management arrangements that it introduced this year. They benefit some of the intensive electricity users.
National Coal Board (Chairman)
13.
asked the Secretary of State for Energy whether he will announce the name of the next chairman of the National Coal Board.
Sir Derek Ezra's current term of office as chairman of the NCB expires next July. We are considering the position and shall make a statement in due course.
Given the Government's declared support for trade union ballots, and given Arthur Scargill's magnificent victory in the election for the presidency of the National Union of Mineworkers, would it not usefully extend industrial democracy if the next chairman of the NCB were approved by a ballot of the whole NCB work force, instead of being simply appointed through the Secretary of State's patronage.
I am sure that coal miners in the Scottish area, especially those at the Polmaise, will regard the seriousness of that question as an indication of the hon. Gentleman's slightly irresponsible attitude towards the coal industry's important future.
To what extent will the next chairman of the coal board, or even this chairman, have any discretion over the spending of moneys allocated for capital expenditure on increases in miners' pay? If such discretion exists, will my hon. Friend give a solemn undertaking that if money is spent in that way he will not come back to the House later asking for more money for capital expenditure?
The manner in which capital approval is given is clearly known and understood. There is no methodology for allocating moneys already accounted for from capital to current expenditure.
Before any appointment is made, will the Minister say whether there is any question of altering the top structure in order to have a part-time—instead of a full-time—chairman and a chief executive in full-time control? Is there any question of that happening before the new chairman is appointed?
All such questions are worth considering and will be considered by the Government when they decide on this matter.
On a point of order, Mr. Speaker. My hon. Friend the Under-Secretary of State stated categorically that there was no possibility that moneys allocated to the National Coal Board for capital expenditure could be spent on revenue. There is a message coming through on the tapes at this moment of a message from the NCB to the National Union of Mineworkers implying that if miners' pay were to be increased further it would come out of development expenditure on the coal mines, thereby leading to a loss of jobs. Those two statements are not consistent, and at this stage of the negotiations——
Order. The statements may not be consistent, but the content of a Minister's reply is none of my concern.
Coal Industry (Privatisation)
14.
asked the Secretary of State for Energy what further proposals he has considered regarding the privatisation of sectors of the coal industry.
I have no such proposals to announce at present.
In view of the coal industry's success story under public ownership, will the Minister give a categoric assurance that during this Parliament the Government will not consider privatising the coal industry as they now seek to privatise other industries, such as the oil and gas industries?
I thought that I had made a more than categoric statement just now. To the extent that the Governmemt are committed to bringing the advantage of privatisation to all areas of British industry, I would imagine that the hon. Gentleman—involved, as he is, in the coal industry—might be concerned at the Government's inability, so far, to do that in the case of the coal industry.
Does not my hon. Friend recall—if not, will he remind himself—that the right hon. Member for Bristol, South-East (Mr. Benn) made a speech about four years ago advocating that miners should take control of the coal mines? Would that not be an interesting form of privatisation, which might both encourage productivity and relieve the taxpayer of a considerable burden? Will my hon. Friend look into the matter with the right hon. Member for Bristol, South-East to see whether that is still his idea, as it may gain widespread support in the House?
I appreciate my hon. Friend's suggestion and recognise the new alliance with the right hon. Member for Bristol, South-East (Mr. Benn). So far, we have not received any approaches on this subject. To the extent that a worker/management buy-out is of interest to the Government, we would be prepared to consider it.
Will the hon. Gentleman extend that assurance and state specifically that there are no plans to privatise any part of the NCB's opencast operations? That is the one area in which rumours have grown.
In my original reply I said categorically that the Government had no intention at present of privatising parts of the coal board.
Is it not extremely disappointing that the Government have no such intentions and plans at present?
I feel a little like a shuttlecock today. However, in my hon. Friend's comments I recognise that many of those in the industry feel deprived when they see the vast amounts of capital that oil industries throughout the Western world are investing in coal in other parts of the world, but not in Britain.
Will the Minister take into account the fact that I look forward to a future when miners will participate in running the mining industry? May I press on him——
Order. I hope that the hon. Gentleman will ask the Minister a brief question, because we are short of time.
Will the Minister continue to resist the views of some of his colleagues who wish to privatise the coal industry? Will he ensure that the plums are not taken from the coal industry, or any other nationalised industry, by private enterprise, leaving the rest to be run by the State?
I hope that those who know the coal industry will be aware of the degree to which employees and management co-operate in running that industry. Equally, I hope that Opposition Members will draw the attention of those in the industry to the fact that employees in the insurance and banking industries and in companies such as Marks and Spencer are not exactly unhappy with private enterprise.
Electricity Disconnections (London)
16.
asked the Secretary of State for Energy how many electricity disconnections took place in the London area during the last three months; and how this figure compares with the eqivalent period in 1980 and 1979.
I have asked the chairman of the London electricity board to write to the hon. Member. I am taking an active interest in the current discussions on possible improvements in the operation of the industries' code of practice, and I have asked the industries to report back to me in February.
Is the Minister aware that we are gratified that he is taking steps to improve the code of practice? Will he give an undertaking to keep the position of cut-offs in London under close review and bear in mind that in 1980 they reached an all-time record? Is he aware that there was great concern that the code of practice was not being adhered to in the London area?
I accept the hon. Gentleman's remarks about the need for proper concern over the matter. When he receives the figures from the London electricity board he will probably find that they show a material decrease this year from the portion last year. I attach the greatest importance to the code of practice. That is why, after the publication of the PSI report, I chaired the meeting between the industries, the consumer councils and the trade unions to discuss the matter. A positive attitude was shown at the meeting. I hope that the current period of consultation will lead to further refinement of the code of practice, which will be in the interests of everyone.
What aspect of the subject of disconnections worries my hon. Friend most, and in what area should we look for improvement?
I must be guided, as is everyone who studies the evidence, by the PSI report. That showed that, in general, the industries operate in accordance with the provision of the code and that breaches occur only occasionally and accidentally. There is room to examine repayment arrangments for people with fuel debts, and also the availability of pre-payment meters.
When considering those matters will the Minister also consider the growing habit—not only of the London electricity board, but of the gas board—of estimating bills because of a shortage of staff? Sometimes they are gravely overestimated to the point where householders cannot possibly afford to pay them. Will he ensure that the boards have sufficient manpower to read the meters?
I am not sure how far that is a matter for me, given the independence on day-to-day management matters of the board. However, whenever we receive letters from hon. Members on such questions we always take steps to investigate them with the relevant industry.
Electricity (Bulk Users)
17.
asked the Secretary of State for Energy if he will make a further statement on his review of the position of bulk users of electricity so far as prices are concerned.
I have asked the electricity industry to continue its efforts to assist bulk intensive users to minimise electricity costs, possibly through improved load management arrangements.
I congratulate my hon. Friend on getting our gas prices below European gas prices, but does he accept that until our bulk supply tariff system is reviewed and altered British industrial users will see wide disparities in pricing between this country and Europe? Will he make the resolution of that problem an urgent priority?
I am glad to hear what my hon. Friend says about gas prices to industry, which, gratifyingly, seems to be the case. At this stage I cannot say more about the BST review, in addition to what my right hon. Friend has already said, because we expect to receive the final version of the report shortly. However, we have invited the industries to look carefully at questions of management arrangements, and so on, with a view to assisting bulk users wherever possible.
House Of Commons
Scottish Grand Committee
23.
asked the Lord President of the Council whether he has now finalised the arrangements for the Scottish Grand Committee to meet in Scotland.
In accordance with the sessional order approved by the House on 5 November, I am pleased to say that arrangements are well in hand to hold the first meeting of the Scottish Grand Committee in the former Royal high school building in Edinburgh on a Monday morning early in the new year, probably on 15 February. It is proposed that the first meeting should be devoted to a matter day debate. The necessary motion will be tabled as soon as possible.
Although the sitting of the Scottish Grand Committee is no substitute for the genuine devolution of power to the people of Scotland, will the right hon. Gentleman give an absolute assurance that the Committee will meet in Scotland before the third anniversary of the 1979 referendum? Scottish Tory Members of Parliament will then be able to explain why they all voted for the repeal of the Scotland Act, although the majority of those who voted in the 1979 referendum voted in favour of that Act.
As I have said, we have 15 February in mind and that date will achieve the hon. Gentleman's objective.
Given that it will be an experiment for the Scottish Grand Committee to meet in Scotland this Session, may I ask what range of topics will be considered during its meetings in Edinburgh, and how frequent will such meetings be? Will my right hon. Friend ensure that we shall have an opportunity to consider the experiment's value at the end of the Session?
I am sure that hon. Members from both sides of the House will assess the experiment. It is thought desirable and helpful that there should be a day to consider the Estimates and another day, perhaps, to consider a Bill. However, these are matters for negotiation.
I assume that there will be facilities for the press and radio, but what about televising the proceedings? [HON. MEMBERS: "No."] Is there any possibility of the Committee being televised?
I do not think that I am the final arbiter. I think that the answer is "No". Indeed, the House came to that conclusion only last week.
Lord President Of The Council
Government Policies (Publicity)
24.
asked the Lord President of the Council what improvements in the effectiveness of the publicity given to the progress of the Government's policies have taken place since he last answered oral questions on the subject.
I have nothing to add to what I said to my hon. Friend on that occasion.
What steps will my right hon. Friend take to ensure that full publicity is given to the advantages for the ordinary school leaver of the new training initiative announced last week, and those for the ordinary trade unionists in the proposed Bill to limit some of the abuses of the closed shop? Is he aware that both those measures have been the subject of wild distortions by Opposition Members? Both measures will need to be explained in a plain man's guide.
My right hon. Friend the Secretary of State for Employment is playing the leading role in the presentation of both those important measures. My right hon. Friend the Prime Minister, my right hon. and learned Friend the Chancellor of the Exchequer and others of my right hon. Friends are speaking about the measures. They have already received a great deal of publicity, some of it distorted. The clear intention is to present the important measures accurately and fairly, especially the training initiative for the young unemployed. When the Bill on industrial relations is published, it will no doubt receive a great deal of attention. My right hon. Friend the Secretary of State for Employment is a good publicist and presenter of cases. He believes deeply in both causes and I am sure that, with the assistance of others, he will achieve what my hon. Friend has requested.
The whole House must be grateful to the right hon. Gentleman for arranging for the Scottish Grand Committee to meet occasionally in Edinburgh. Will he make the same arrangements for the Welsh Grand Committee to meet in Cardiff and the Northern Ireland Grand Committee to meet in Belfast and——
Order. I am not showing any bias in interrupting the hon. Gentleman, but I think that he has reverted to the previous question, which has nothing to do with this question.
On a point of order, Mr. Speaker. The question is about publicity given to Government policies. Are you suggesting that there is no Goverment policy for Wales and Northern Ireland?
I never make suggestions.
Is my right hon. Friend aware that the Labour Party is clearly trying to give the impression that the GLC fares muddle has arisen because of Government legislation? If the Government are determined, as I am sure they are, to ensure that misleading publicity is countered, will my right hon. Friend make it absolutely clear again and again that it was a Labour Government who passed the law that the GLC broke and that it had nothing to do with this Government or any of their Conservative predecessors?
I am sure that my hon. Friend is right. The subject was debated last Friday, and I have no doubt that more attention will be given to it.
When will the Leader of the House come clean on the question of publicity? Is he aware that the question refers to the effectiveness of Government publicity? Bearing in mind that the Government are committed to reducing taxation, inflation and unemployment, is it not effective policies rather than effective publicity that we need?
The fact that the right hon. Gentleman intervenes in that sense suggests that our publicity is better than I had thought.
House Of Commons
Select Committee On Procedure
25.
asked the Lord President of the Council what representations he has received concerning the establishment of a Select Committee on Procedure; what topics have been proposed; when he anticipates an announcement of the date of the setting up of the committee; and whether he will make a statement.
The establishment of a Select Committee on Procedure with general terms of reference has been suggested by several hon. Members, among them the hon. and learned Gentleman. The topics proposed for consideration have included the arrangements for Prime Minister's questions; Private Bill procedure; the parts of the House from which hon. Members may speak; and the arrangements for Sessions and sittings. As I have said previously, I consider that priority should be given at present to the further examination of the procedures of the House for controlling Government expenditure.
Does the Leader of the House accept that the present procedures for Private Member's Bills are thoroughly inadequate and that Back Benchers do not have a fair amount of time in which to put forward legislation? Does not his answer show that the Government intend to take no steps to improve the matter?
I do not agree with the hon. and learned Gentleman's opinions. The matter has been considered by previous Select Committees on Procedure on a number of occasions. It could be considered again if the House so wished. I do not think that the hon. and learned Gentleman is right in his remarks about the arrangements for Private Member's Bills.
Does my right hon. Friend agree that one way to monitor public expenditure would be to reconstitute the Select Committee on Nationalised Industries, with special reference to monitoring their financial performance?
That subject arose last Thursday. Most right hon. and hon. Members want to see how the new Select Committee system develops. The nationalised industries are under the purview of the system, but are not all under the remit of one particular Committee. I hope to re-establish, as soon as possible, the Procedure (Supply) Committee. It produced a report last Session. I am trying to make progress with that and hope to table a motion as soon as possible.
When the question of a nationalised industries Committee arises again, will the Leader of the House bear in mind that existing Committees have the power under present rules to set up a joint committee on nationalised industries if they wish to do so? Is the right hon. Gentleman's reluctance to have a general Committee on Procedure perhaps based on the fact that that Committee, during the last Parliament, recommended the Special Standing Committee procedure which, despite strong representations from representatives of all parties in the House, he is reluctant to put on the Order Paper so that the House can take a decision about it?
All right hon. and hon. Members are anxious to see how the new system develops, whether changes are desirable and whether existing procedures can be used. That will be a matter for Committees and the House. I want to establish the Procedure (Supply) Committee as soon as possible. There were only four sessional Procedure Committees on general matters in the 1970s. I have no objection to having another and, obviously, there will be another. It would help the House if, in this Session, we completed the work of examining the Supply procedure.
The Leader of the House has expressed a determination to improve the control of public expenditure. Why is it that despite the unanimous expression of opinion in the recent report of the Public Accounts Committee, which recommended ways to do precisely that, the Government insist on rejecting the report?
That is a question for my right hon. and learned Friend the Chancellor of the Exchequer.
rose——
Order. I was about to tell the House that I have had notice of a point of order. I usually take points of order after statements, and since there is a statement I shall take points of order after that—unless they are of such an urgency that they cannot wait.
On a point of order, Mr. Speaker. My point of order does not relate to the statement. It relates to questions. I know your principle, Mr. Speaker, that you do not wish questions to be interrupted by points of order, and I agree with it. However, what you effectively did by interrupting my question to the Lord President of the Council was to preclude everyone in the United Kingdom from pointing out that Scotland has been treated uniquely. I do not mind that, but I should like to point out that there are Grand Committees—Northern Ireland Committees, and regional Committees—that could also meet in their areas——
Order. It is only because the spirit of Christmas has come upon me that I allowed the hon. Gentleman to go so far as he did with what was not a point of order.
Questions To Ministers
On a point of order, Mr. Speaker. In view of the fact that this is a point of order relating to questions, perhaps it would be appropriate if it were taken now rather than after the statement but, of course, I am in your hands.
I shall take it now.
There stands on the Order Paper today written question No. 184 in the name of the hon. Member for Reading, North (Mr. Durant), which reads:
The Department of the Environment this morning circulated and made available to the press a notice that was available in that Department before noon today. It is headed "Housing Capital Expenditure", and reads:"To ask the Secretary of State for the Environment, whether he is now able to announce his decisions on housing subsidy and public housing investment for 1982–83."
The press notice then set out the text to the answer. I should he grateful, Mr. Speaker, if you would give a ruling to the House of Commons on the propriety of the action by the Secretary of State for the Environment in making available to the press the text of a parliamentary answer, due for answer today, several hours before the House met, and, therefore, several hours before it was possible for the Secretary of State to make available that answer to the hon. Member for Reading, North, and several hours before it could be available to the House of Commons. It is already an affront to the House that, unlike the previous two occasions, the Secretary of State has seen fit to make this announcement by way of a planted written question, rather than by the oral statement that the House would have expected, so that hon. Members could question the Secretary of State on the many factual concealments that are evident in the answer as it has been made available to the press. I ask you, Mr. Speaker, first, to give a ruling on the propriety of the Secretary of State's action in releasing to the press a parliamentary answer before that answer has been made available to the House. Secondly, since the Leader of the House is present, will he make it clear to the Secretary of State for the Environment that in addition to whatever you say, Mr. Speaker, about the propriety of the matter, the only way in which he can make amends to the House is by coming here tomorrow and making a statement, not only on this matter but also on the rate support grant, on which there is also a planted written question down for answer today?"Michael Heseltine, Secretary of State for the Environment, today announced that housing capital expenditure will be retained at approximately the same level as last year. In answer to a parliamentary question from Tony Durant MP, Reading, North, Mr. Heseltine said"—
Until 3.30 pm, any hon. Member is free to withdraw a question, and, therefore, it is not right to issue the answer before that time. I count my blessings that when I was Secretary of State I never did that, or at least I was never caught if I did it. That is my ruling.
On a point of order, Mr. Speaker. My point of order relates to that of my right hon. Friend the Member for Manchester, Ardwick (Mr. Kaufman) on which you kindly gave your views to the House. I believe that the Leader of the House should answer that point of order straight away. If a responsible Minister—the Secretary of State for the Environment has a long history of doing this sort of thing—is unwilling to come to the House on a day such as this when he must have known what he was doing earlier, the Leader of the House must take responsibility. Will the Leader of the House kindly tell us that he will instruct the Secretary of State for the Environment to come to the House tomorrow to apologise and to make an oral statement?
Order. We cannot have a sudden debate across the Floor on a point of order. The request must be addressed to me, not to the Leader of the House. With every respect, he does not have my job yet. He may have it one day, but not yet.
I was following your unparalleledly clear ruling to the House, Mr. Speaker.
The matter was raised last Thursday and I replied that this announcement would be made by means of a written answer, which is the normal practice. There was a special reason why in the previous year it was not done in this way. I shall make inquiries on the other matter that was raised by the right hon. Gentleman.
Further to that point of order, Mr. Speaker. I am sorry to rise again, but perhaps the Leader of the House misunderstood what was being raised. When my right hon. Friend the Leader of the Opposition raised the matter last Thursday it was not in relation to the housing investment programme, but in relation to the rate support grant, on which we were already apprehensive that the Secretary of State for the Environment would give a written answer rather than an oral statement.
The housing investment programme is a different matter altogether, and is one on which the Secretary of State for the Environment has made an oral statement for the past two years. On this occasion the right hon. Gentleman has departed from that practice and has indulged in conduct on which you, Mr. Speaker, have made a ruling. It may be that the Leader of the House was not aware that I was dealing with a different statement from the one that was made on Friday.Further to that point of order, Mr. Speaker, I shall make inquiries about the issue raised by the right hon. Gentleman.
You will recall, Mr. Speaker, that during Question Time the Secretary of State endeavoured to make a statement on the problems facing domestic users of electricity who have been cut off. Has a statement been requested, and may one ask the Leader of the House for a statement before the House adjourns for the Christmas Recess, because my constituents who have had their electricity cut off are worried about Christmas and the possibility of their Christmas dinners being spoilt——
Order. I allowed the hon. Gentleman to make his point, but it is not a point of order for me. I have had no such request.
May I raise a genuine and normal point of order, Mr. Speaker'? I must apologise if I raise too early a point about Ministers' answers. However, I think that the House wishes your guidance, Mr. Speaker. Surely it would be common sense if Ministers' answers bore some relation to the question asked. A question should not be used to bring in a completely extraneous matter.
I am sure that what the hon. Gentleman has said will be borne in mind by every Minister who has to reply in future.
Information Technology Centres
3.40 pm
With permission, Mr. Speaker, I should like to make a statement.
My right hon. Friend the Prime Minister announced in July the Government's intention to set up a network of 20 information technology centres where young unemployed people will receive training in electronic assembly, computing and basic information technology skills. This is a joint initiative between the Department of Industry and the Manpower Services Commission. I am glad to say that the response has been widely welcomed throughout England, Scotland and Wales. I am in discussion with the Northern Ireland Office. I am now able to announce the first phase of 30 centres. There will be two centres in Scotland at Dundee and Inverclyde, one in Wales in Clwyd, four in the West Midlands at Birmingham, Coventry, Telford and Walsall, in addition to one in the East Midlands at Leicester. In the North-West, in addition to the five centres on Merseyside which have already been announced by my right hon. Friend the Secretary of State for the Environment, there will be centres at Warrington, Salford and Manchester. There will be five centres in inner London, plus centres in Bristol and Portsmouth. In the North-East and Yorkshire and Humberside there will be centres at Newcastle, Sunderland, Gateshead, Leeds and Sheffield. I am placing details of the locations in the Vote Office and I am arranging for them to be published in the Official Report. The House will see that in this first phase we have adopted a deliberate bias towards the inner city areas. Information technology centres are an important initiative which will help to meet the needs of young people to gain relevant, transferable skills and provide the trained work force which industry will increasingly need. In addition, the centres—this is a unique feature—will include small workshops where the trainees can gain commercial experience. Each centre will be supported—this is also unique—by a local sponsor such as a local high technology company, or in some instances a local authority. The centres will be modelled on the highly successful Nottingdale technology centre whose director, Mr. Chris Webb, is helping to co-ordinate our information technology centre programme. The fact that I am able to announce as many as 30 centres today is a tribute to the warm response that this initiative has received and to the considerable help of the local offices of the MSC and to the companies that have agreed to act as sponsors. However, 30 centres is only a start and we intend to extend the scheme next year, again under the joint sponsorship of the Department of Industry and the Manpower Services Commission. I envisage a programme that could aim to reach a total of about 100 centres in the next year or so. Not all areas are equally catered for in this first phase and we should be hoping to achieve a wider geographical spread in the second phase.The Opposition welcome the Minister's announcement. We are pleased that the Government are now taking training experience in information technology as seriously as other European Governments. We look forward to scrutinising this development in future.
On what basis will the young unemployed be paid during the training that they are to receive at information technology centres and to what standards will they be trained? Will the standards be commercially recognised? Is there to be a placement service attached to information technology centres to help young people find a job once they are trained? Will the expenditure on the centres be new money, or will it come from some other scheme in the Department's public expenditure programmes?I am grateful to the hon. Gentleman for welcoming this initiative.
The trainees will operate under the youth opportunities programme and they will receive £25 a week from January. Next year the scheme will be phased into the youth training scheme, which was annouced by my right hon. Friend the Secretary of State for Employment. The hon. Gentleman asked about standards. It is not in the Government's mind to make the centres certificate-granting bodies, but the training will be in the skills that are being used at Nottingdale technology centre—for example, simple computing skills, computer programming and electronic assembly. We are aiming to train 16 to 19-year-olds who are basically unqualified. The youngsters at Nottingdale are boys and girls who have left school without any qualifications—certainly no O-levels, possibly one or two CSE levels. However, they have reacted exceptionally well to training at Nottingdale and I was impressed by their enthusiasm. The purpose of persuading companies to adopt or sponsor each centre is to help the placement record. There will be a workshop facility attached to each centre. I can assure the hon. Gentleman that the scheme involves new money.Is the Minister aware that there is a wide consensus that this area of technology will provide many new job opportunities in future and that his statement will be widely welcomed as part of a scheme to provide young people with the opportunity to take up technological jobs when they come on stream during the coming decade? How many students will the centres cater for, including those that he has announced and the extra ones that he anticipates announcing in due course?
Secondly, is the Minister sure that there will be no duplication of existing training facilities, whether through the Manpower Services Commission or in education institutions? Thirdly, will he bear in mind that on Teesside we have many high technology industries and that a training centre would help considerably with the high level of young unemployed people in the area?I accept what the hon. Gentleman says about Teesside. I hope that there will be at least one centre on Teesside in the next tranche to be announced. I do not think that the scheme will duplicate anything that exists. There was nothing of this nature in North Hammersmith before the Nottingdale technology centre started. This is a new facility and a new type of training-cum-workshop centre. At Nottingdale about 40 trainees pass through in a year, the courses running for one year. Other centres may decide to have slightly shorter courses. We are thinking of about 30 or 40 students a centre, but there may be more than that.
What will be the total cost of the programme to the Government?
Operating costs for the first two years, including capital costs, will be about £300,000 a centre. The cost for the first 30 centres will be about £9 million. When the scheme is extended to embrace about 100 centres, the cost will be about £30 million.
I welcome the scheme that the hon. Gentleman has announced, but the centres will be no substitute for practical work in industry. Does he recognise that industry will require great impetus and rejuvenation, especially on Tyneside, if young people are to be able to take advantage of the courses?
I am glad to say that the first two centres, which will be opening in January, will be on Tyneside, at Gateshead and Newcastle. There is some competition between the two centres to open first. I do not regard the scheme as a substitute for practical work in industry. I look upon it as an imaginative venture to train youngsters for the skills that will be needed in the industries that will grow fast in future. That is certainly the experience that we have had in the operation of the Nottingdale centre in London. One of the unique features of the centres is that small workshops will work along with them and make products. That will from the start inject a business and commercial attitude into the whole operation.
Is my hon. Friend aware that his announcement suggests that the new money will be well spent, but will he give an undertaking that in the second and third phases it may be possible to situate some of the centres in outer London, which would be of great interest to my constituents?
The five centres in London will be at Southwark, Camden, Haringey, Hackney and Brixton. I shall take on board my hon. Friend's point. I am glad that he believes that the money is well spent. All money that is spent on the new technology is well spent.
Are the centres meant in some way to compete with the further education system, or will there be some effort to integrate the facilities in the centres into further education courses?
There is no sense of competition. We are aiming at 16 to 19-year-olds who are unemployed and who have not entered any college of further education. Other user groups will be welcome outside normal working hours. They have been welcomed at the Nottingdale centre. We also wish to encourage small businesses to come in so that they may become familiar with the new technologies being learnt there.
To what extent will the scheme make use of local industry or the ground? To what extent has the Department of Industry coordinated with the Manpower Services Commission on the scheme?
We worked closely on the scheme with the Manpower Services Commission and I have already paid tribute to its work. The schemes in Haringey and Hackney are supported not by one company but by a clutch of small, typical East End companies. Elsewhere, IBM is supporting the scheme in Portsmouth, Northern Engineering Industries Ltd. is supporting it in Gateshead and Cable and Wireless Ltd. is supporting it in Southwark and Camden. There is close integration between the centres and industry.
First, can my hon. Friend confirm that the Government are looking towards the education service to provide the skilled instructors for the centres? Secondly, will the Government consider sympathetically the cost of travel to the centres and, if necessary, adjust the money upwards?
I shall certainly consider the latter point. I emphasise that the bodies are not highly structured. They are to some extent experimental, because we are setting up a centre which is both a training centre and a workshop. To that extent they are unique. In many cases the instructors will come from industry, in some cases from the education system and in some cases from the companies acting as sponsors.
When will the unfortunate young people of Wolverhampton have the opportunity to attend a centre, bearing in mind that many thousands of our young people have been out of work since they left school? If they are asked to travel to any of the existing centres in the West Midlands, will their travelling costs be reimbursed?
I shall consider the question of travelling costs and let the hon. Lady know my decision. There is a centre in the Wolverhampton-Walsall area supported by the Walsall chamber of commerce, which may not entirely satisfy the hon. Lady. However, there is a programme for further expansion.
Does my hon. Friend recognise that the schemes will be especially welcomed in cities such as Manchester where the change from old to new industries is important? Can he say what the role of the local sponsor will be?
There are two local sponsors. The first is the local authority, which, in most cases, has provided the premises. In one or two cases the local authorities have provided funds. I especially wished to have from the firms not only their cash—although they have invested some money—but a commitment to lend perhaps one or two executives to keep an eye on the centre and help those running it and the trainees. That has two purposes. One is to help them to find jobs afterwards. The second is to inject a business element into the centre from the beginning. One of the first centres to be opened in January will be at Manchester, Moss Side.
Welcome though the initiative is, why is it being carried out in such a fragmentary way? Why cannot the initiatives be drawn together in a major expansion of further education jointly between education authorities and Government Departments, rather than the sort of fragmentation and competition that are emerging concerning the 16 to 19-year-olds?
I do not consider it as such and I do not believe that many people do. Youth unemployment is the most pressing and urgent problem facing Britain. That is why my right hon. Friend announced the youth training scheme last week. However, there is no single answer to youth unemployment. Many initiatives are needed. This scheme is one initiative and it will be a helpful contribution.
Is the Minister aware that the Kent education committee plans to have a computer in every senior school? Will there be some co-ordination between the education committee's effort and the new scheme?
My hon. Friend is correct. We hope to have a microcomputer in every secondary school by the end of this year. In several schools there will be many microcomputers. There will be co-ordination and the group that is establishing the centres is already in discussion with the team that is undertaking the "micros in schools" programme.
What were the Minister's criteria upon which he based his original decision? Is he aware that Hull councillors and I wrote to him immediately the first announcement was made and told him about the facilities in our local innovation centre at the university and the college of technology, only to find that when he visited Hull he turned down our application? Is he aware that we have every facility at the disposal of his Department and the children in the area?
I hope that an information technology centre will be set up in Hull. I visited Hull six weeks ago and its representatives made a strong case.
As to our criteria, I first visited the Nottingdale Technology Centre in June of this year. I was so impressed by the commitment of the trainees that I was persuaded that something must be done. I then saw the Prime Minister and she announced in July that there would be 20 information technology centres. Within six months, I have announced 30 centres with an extension next year. It is a great tribute to the energy and enthusiasm of those who work for me that we have got so far so soon.Is my hon. Friend aware that his statement will be welcomed enthusiastically by educationists and industrialists alike in Coventry? Is he further aware that today's announcement, together with the science and technology department at Warwick university and the recent announcement of an enterprise allowance for Coventry, make that city one of the most attractive in Britain for businesses that wish to exploit the new technology?
As my hon. Friend knows, Coventry will have an information technology centre. I agree with what he has said about the city. That centre will be sponsored by GEC Telecommunications Ltd.
In view of the fact that the information technology centres will be concentrated in the inner cities, what guarantee can the Minister give that, in recruiting teachers for the centres, efforts will be made to ensure that comprehensive schools in those areas which are already short of physics and computer science teachers will not be deprived of even more teachers?
The hon. Gentleman will appreciate that his borough will have one of the first centres, which is sponsored by Cable and Wireless Ltd. and Compucentres Ltd. I do not believe that such competition, which appears to worry Opposition Members, will emerge. Some instructors will be drawn from the education system, some from the sponsors and some from industry.
I congratulate my hon. Friend on his welcome announcement, which will do much to promote knowledge and expertise in such industries. I also congratulate him on the zest that he has put into the subject of information technology. Is he aware that we are glad that 30 centres is only a start? In the second round, will he bear in mind the claims of the city of Lincoln, where there are some industries that would benefit from such skills? Is he aware that Lincoln is a city at the centre of a large region which is not sufficiently catered for by his announcement today?
I thank my hon. Friend for his words. I shall ensure that Lincoln is considered in the next round.
Is the Minister aware that his statement will be welcomed in Manchester, especially against the background that the first computer was invented in that city? However, will he accept that it is a contradiction that he should establish such an information technology centre in Manchester at a time when ICL, the major computer manufacturer in that area, is contracting? Will he now address his mind to encouraging that company and other computer manufacturers to come to Manchester?
I am aware of the problem of Plymouth Grove and ICL, but the steps taken by the management should make ICL one of the strongest computing and communications companies in Europe in the next decade. The job opportunities in the industries serviced by such skills will grow substantially over the next few years.
Is my hon. Friend aware that one of the most welcome aspects of the announcement is the acceptable face of information technology which it demonstrates in dealing with educational and social values as well as economic values? Will he ensure that the new centres do not become part of an existing straitjacket but have broad contacts with educational organisations and other potential users?
The success of the centres will depend very much on their being looked on as community-based centres and not as sub-units of the system. The success of Nottingdale lies in its connections with local firms, the local education authority, the local polytechnic and the housing authority. It is very much a community-based centre.
Does the Minister accept that any attempt by the Government to redeem the two and a half years lost is welcomed`' Does he agree that the initiative makes nonsense of employers' claims that young people who do not have qualifications are untrainable and ineducable? In his next tranche of initiatives, will he consider the claims of Durham county?
I shall be delighted to consider the claims of Durham county. I do not accept that we have lost two and a half years, but on another occasion I should be willing to cross swords with any Opposition Member on the matter. Employers have not said that young people are ineducable. That is an absurd exaggeration of what has been said, and it is certainly not the case. I repeat that I was impressed by what I saw at Nottingdale. The youngsters were not of the first intellectual flight, although they could be taught the simple skills of the new technology. The new technology is not only for the high fliers; it should be for everyone.
May I congratulate my hon. Friend on his announcement as the successful experiment at Nottingdale should be repeated successfully elsewhere? When he considers further locations for information technology centres, will he bear in mind that no other industry has suffered such bad job losses as the textile industry and that no area has suffered as much as Calderdale and Kirklees in West Yorkshire, particularly where the young are concerned?
I was in the Calder Valley three or four weeks ago and am aware of the problems, aggravated by the recession in the traditional industries. The Calder Valley authority has made strong representations for assistance and for an information technology centre, and we are considering them.
Of the 30 centres designated, is there to be only one in Wales and that in North Wales? As it has particularly high unemployment, especially among young people, and as it has a number of high technology and information companies, why is South Wales excluded?
I have nothing against South Wales. I was born there. We tried to find a host group in South Wales and negotiations were fairly well advanced, but, unfortunately, they came to nothing. In the next group we shall look for more centres in Wales.
Why has Cumbria been excluded, particularly when the nearest centre is 100 miles away? The Cumberland county council has spent much time trying to attract high technology industry and, as the Minister knows, we lack a centre of learning, so will he ensure that in the next phase provision is made for West Cumbria?
The fact that Cumbria was excluded has nothing to do with the hon. Gentleman, and in the next group we shall consider the area.
As Greenwich does not appear in the first list, will the Minister bear in mind its special qualifications? They include the high level of youth unemployment, Greenwich borough council's very good record in attracting and supporting small industry, the enthusiasm that the local authority has shown for such a project and the support that it will get from the Thames polytechnic and local industry.
Greenwich has made a submission, and I recognise and shall look at its claims. As I said, inner London gets five centres in the first group. I am glad to see such enthusiasm for the scheme from all parts of the House.
If the Minister accepts that within a decade or so we shall be well on our way to a cashless society and also that stock control will be carried out electronically, why has he failed to convince more banks and large shops to sponsor the scheme and to put more effort into ensuring its success, particularly in the City?
Comments on a cashless society from the hon. Gentleman must be listened to carefully. However, what he says is not entirely true. The banks have shown support and one retail group, Littlewoods, is sponsoring a centre in Liverpool.
I welcome the Minister's announcement particularly as we are to have a centre in Sunderland, and the fact that the people involved will not have special skills. How many people will be involved in the centre in Sunderland and how will they be selected, as a great number of young people will be available for the jobs? How will industry back the scheme, and how will it guarantee a job after the youngsters have finished the course?
I have not asked the companies to guarantee a job, but some have said that they will be willing to help place the youngsters. Young unemployed people between 16 and 19 years of age will be referred to centres by the local careers service or jobcentre. Generally they will be girls and boys without much academic qualification.
Will there be a tie-up between Inmos and the new schemes, bearing in mind that it is building factories abroad and is connected even with Japan and the United States and highly qualified microchip engineers are emigrating.
The strategy of Inmos has been to set up a design team and a factory in America and then to build a factory in South Wales, which it is doing. I am sure that Inmos would be glad to support and help a centre in South Wales.
Following are the details:
Location and Sponsoring Groups and Supporting Companies Dundee
Consortium sponsor. Chaired by Willian Low & Co. Ltd., and including Timex, Tayside Regional Council, Dundee District Council, Dundee Chamber of Commerce, Scottish Development Agency.
Inverclyde (Greenock)
Consortium sponsor. Chaired by Sangamo Time Controls Ltd., and including IBM (UK) Ltd., National Semiconductors (UK) Ltd., Andrew Halliday (Greenock) Ltd., Kerr Electrical, Scott Lithgow, Inverclyde District Council, Strathclyde Regional Council, Inverclyde Trades Council.
Birmingham
Computeach International Ltd., and Compucentres Ltd.
Coventry
Coventry Local Education Authority with GEC Telecommunications Ltd.
Leicester
Leicester City Council with GEC Ltd., and Jasmine Electronics Ltd.
Telford
Telford Development Corporation with Adda, Unimation, Reliance Electronics and Ruant Electronics.
Wolverhampton/Walsall
Walsall Chamber of Commerce.
Liverpool
Charles Wootton Centre with Littlewoods.
Liverpool
Merseysyde Training Ltd., (run by Merseyside County Council)
Wirral
Marconi Space and Defence Systems and Wirral Borough Council.
Warrington
Warrington Industrial Training Trust Ltd., with support from Warrington and Runcorn Development Corporation, Mateval, A. Monk & Co. Ltd., and G. & J. Greenall.
Manchester
Manchester City Council.
Manchester
GEC and ORT (Organisation for Rehabilitation through Training).
Salford
Salford University and Ferranti Computer Systems Ltd.
Southwark
London Borough of Southwark and Cable and Wireless.
Camden
London Borough of Camden with Cable and Wireless, Compucentres Ltd. and other industrial support.
Haringey
London Borough of Haringey with local industrial support.
Hackney
London Borough of Hackney with local industrial support.
Bristol
New Work Trust Co. Ltd.
Portsmouth
Portsmouth City Council supported by IBM (UK) Ltd.
Sunderland
Sunderland Metropolitan Borough Council.
Gateshead
Gateshead Metropolitan Borough Council with Northern Engineering Industries.
Newcastle-upon-Tyne
Newcastle Information Technology Ltd., with Institution of Electrical Engineers and Council of Engineering Institutions.
Wales, Clwyd
North East Wales Institute.
Leeds
Leeds City Council and Systime Ltd.
Sheffield
Sheffield City Council with AD Controls and Technology Ltd., and Rotary Electrical.
Negotiations are also going ahead in Knowsley, Sefton, Brixton and Bristol.
Penlee Lifeboat
On a point of order, Mr. Speaker. Before the House rises for Christmas, will it have the opportunity to express its sadness at the tragic loss of a lifeboat and its entire crew off the Cornish coast?
The hon. Gentleman has raised a matter that unites the whole House. I am sure that I speak for the House when I say that our heartfelt sympathy is with the people of Mousehole and others who have suffered in the tragedy. We are proud of the courage shown. It makes us humbly grateful to know that in this land there are people of such quality. That the community should be grief stricken on the very edge of Christmas adds to the sorrow which the whole nation will feel.
Greater London Council (House Of Lords Judgment)
I beg to ask leave to move the Adjournment of the House, under Standing Order No. 9, for the purpose of discussing a specific and important matter that should have urgent consideration, namely,
This issue is specific in that it arises directly from the decision of the House of Lords that the GLC does not have power under the Transport (London) Act 1969 to give the London Transport Executive the revenue grant which is required to pursue the fares policy on which the current GLC was elected. On Thursday last, Mr. Speaker, you ruled that the debate which we were to have on Friday on communications in the South-East would be permitted to go wide enough to enable the matter to be debated. As a result, the Solicitor-General came to the House on Friday to give legal guidance. However, that guidance did not touch upon any of the fundamental issues on which guidance is required so that decisions can be taken to deal with urgent matters arising from the decision of the House of Lords. For example, the Solicitor-General's guidance did not show what level of revenue support by the GLC will be legal or over what period the GLC and the LTE will have to repay the deficit that will inevitably arise as a result of the decision that the supplementary rates claim cannot be operated. Nor does the guidance enable us to form a judgment as to which part of the supplementary rate, or all of it, is illegal. It does not distinguish between the amount of the rate which was claimed to pursue the fares policy, the amount which was claimed to improve the transport services, or the amount which was needed to deal with the deficit arising from the transport policy of the previous GLC. Therefore, the matter is urgent because there is a massive confusion which must be ended. The confusion was evident in the statement made by the Secretary of State for Transport on Friday when he said that a fares increase of 60 per cent. was required to bring London fares, in real terms, up to those paid in 1980–81. However, Sir Peter Masefield, the chief executive of LTE, has confirmed that it will need a 150 per cent. fares increase to break even by the end of 1983. The House must be in great doubt as to the massive cuts envisaged in the Secretary of State for Transport's calculation as to the fares increase implications of the House of Lords judgment. The matter is also important because the Transport (London) Act 1969 was intended by the then Secretary of State for Transport to put London Transport on the same basis in relation to the GLC as are the passenger transport executives of the other metropolitan authorities in relation to their senior local authorities. Therefore, if this major issure is in doubt for London, it must be in doubt for all metropolitan authorities. There were five differing judgments delivered by their lordships and in at least one of them it is clear that the LTE is held separately liable for operating without a deficit. Therefore, irrespective of the decision of the GLC, the London Transport Executive must take decisions in order that it can act legally, following the House of Lords judgment. It must not only take decisions but take them quickly; it must not continue to act illegally. I am informed by Sir Peter Masefield that he must make a decision by 7 January if he is to have fares increases operating by 21 March. It will not be possible, without a debate in this House, for the House to reach any decision or give to the Government a clear view on the policy that we would wish to be pursued in relation to the major transport undertakings of the capital and the metropolitan authorities. I believe that the matter falls squarely within the requirements of Standing Order No. 9 for debate in the House."the need for the Government to make clear their intention to introduce early legislation to clarify the legal basis on which a fares increase can be determined by the Greater London Council and the London Transport Executive not later than 7 January 1982 to comply with the ruling of the House of Lords."
The right hon. Member for Barrow-in-Furness (Mr. Booth) gave me notice, before noon today, that he would seek leave to move the Adjournment of the House for the purpose of discussing a specific and important matter that he believes should have urgent consideration, namely,
As the House will understand, I listened with special care to the right hon. Gentleman, in view of the debate which this House had on Friday last. I listened with concern to the new arguments that the right hon. Gentleman advanced. In view of those arguments, I am satisfied that the matter raised by the right hon. Gentleman is proper to be discussed under Standing Order No. 9. Has the right hon. Gentleman the leave of the House?"the need for the Government to make clear their intention to introduce early legislation to clarify the legal basis on which a fares increase can be determined by the Greater London Council and the London Transport Executive not later than 7 January 1982 to comply with the ruling of the House of Lords."
The leave of the House not having been given Mr. Speaker called on those Members who supported the motion to rise in their places, and not less than Forty Members having accordingly risen, the motion stood over, under Standing Order No. 9, until the commencement of Public Business tomorrow.
E Rex Makin And Co
The hon. Member for Liverpool, Scotland Exchange (Mr. Parry) has drawn my attention to a letter which he has received from E. Rex Makin and Co., a firm of solicitors, which could, in his view, convey a reflection on the privilege of freedom of speech in this House.
Having studied the terms of the letter, it is my view that it is a matter to which I should allow precedence. Therefore, under the rules to which the House has agreed, the hon. Member is at liberty to table a motion for debate at the commencement of public business tomorrow. That means that it will appear on the Order Paper before the Adjournment motion which I have just granted under Standing Order No. 9. In order to assist the House in the debate on the motion—if there is a debate—I will cause the text of the letter to be published in the Official Report.Following is the text of the letter:
Dear Sir,
My client, Sir Trevor Jones, has asked me to communicate with you with regard to your speech in the House of Commons on 10 December 1981 in the course of the debate on the Scarman Report when you made a reference which is clearly identifiable to my client.
In the course of the debate on the Scarman Report you say, concerning the Police, "Twice they tried to frame me for motoring offences." After other references to housing you then proceeded to state, "A report was published recently on the failure of the Liberal Leader of the Liverpool City Council to declare an interest in a claim affecting his Company which turned a private housing area into an industrial estate. I understand the matter has been raised with the Director of Public Prosecutions, so I shall say nothing more about it, but that is indicative of Liverpool City Council's housing policy."
According to my instructions and the evidence in my possession, you had no justification for making such a scurrilous, defamatory, inaccurate and irrelevant reference, privileged though it is.
You refer to "a report". This is clearly misleading, particularly in the context of your subsequent reference to the Director of Public Prosecutions. You can only have been referring to a feature in the New Statesman, a previously well-respected but now apparently declining publication. Of recent times it has taken to publishing this 'Private Eye' kind of reportage in connection, amongst other things, with careers and personalities of Members of Parliament, including colleagues in your own Party (and on Merseyside) of which you are no doubt aware.
To have referred to this as you did, and as "a report", may well have misled, even if unintentionally, those to whom it was addressed, particularly as you must surely have been aware at that particular time that proceedings had been commenced by my client for libel.
At no time, according to my instructions, did my client fail to declare an interest as you state, and it is significant to note that the author, a Mr. Rob Rohrer, who was formerly associated with the "Free Press", has produced similar reports, one which alleged Police brutality following which four clients of this firm were charged with, and, last week, acquitted of, perjury.
Your reference to the housing policy of this city, my client feels, may be due to your conscience as belonging to a Party which has condemned the bulk of your constituents, by its declared policy over a period of time, to an existence in municipal accommodation which is thoroughly unsatisfactory, inadequate and deplorable, whereas my client's Party's policy of building houses for sale has been the only bright light on the housing scene in Liverpool for many years.
My client points out that as you are ready to accuse the Police of "framing" you for alleged offences, he would have thought that in the circumstances you would have taken more care before you publicly charged him, by implication, with corruption, in a way that he cannot answer.
I have reason to believe that others may be taking this matter up in the House, but in the meantime I am instructed to write to you to record my client's deep concern about your conduct and, in due course, I will revert to it in the proceedings to which I have referred, if you have not in the meantime taken appropriate steps, as aggravating those damages to which my client is entitled.
Yours truly,
E. Rex Makin & Co.
Sittings Of The House
Resolved,
That this House do meet on Wednesday at half-past Nine o'clock, that no Questions be taken after half-past Ten o'clock, and that at half-past Three o'clock Mr. Speaker do adjourn the House without putting any Question.—[Mr. Gummer.]
Adjournment (Christmas)
Motion made, and Question proposed.
That this House at its rising on Wednesday do adjourn till Monday 18 January.— [Mr. Gummer.]
4.18 pm
I do not believe that it would he seemly for the House to go into the Christmas Recess until we have debated "Social Trends", published on 10 December by the Central Statistical Office at £19·95. This important publication did not receive a great deal of attention by the press and, as far as I know, it has received very little attention by either Church or State. That is amazing in view of the amount of important information that it contains about how people in this country lived from 1970 to 1980.
In brief, the report showed a marked rise in living standards and an appalling fall in moral standards. We read in the report how, in spite of our economic difficulties, we are now 28 per cent. better off than we were 10 years ago. We not only live longer, but we have better teeth; we smoke less; we take longer holidays, including more holidays abroad; we have more telephones, refrigerators, central heating and television than ever before; and we even manage to save more. Television seems to be our main occupation, and we spend an average of almost 20 hours a week watching it. It is true that during that period prices rose by 15½ per cent. each year, but we were markedly better off, and the number of credit cards has increased 13 times in the decade. To be fair, unemployment had not bitten into those figures by 1980. Yet the effect of the whole is one of huge material success. Judging by the writings of social scientists and other polemicists from Bernard Shaw onwards, this wonderfully successful materialistic society should have led to more happiness and contentment and, of course, less crime. In fact, the opposite has happened. Crime has increased, as we all know, and the whole social fabric of the nation centred on the family has been ripped to tatters. Divorces have reached record levels. By 1980, almost one in six divorces included one or both partners who had been divorced before. One in 10 of unmarried women are now cohabiting, the number of one-parent families has doubled, illegitimate births, abortions and reported homicides have reached record levels and., not surprisingly, there has been a sharp increase in venereal disease. Alcoholism, also not surprisingly, has increased. This is a terrifying picture with fearful consequences for the future of our people unless we can halt the trend and turn back to our old social ways. Despite material progress, the statistics for marriage, illegitimacy and divorce tell a grim and unambiguous story of blighted lives and, no doubt, much personal and private unhappiness. This turbulence has disturbing social implications for it implies a disintegration of family structure which damages the foundations of the social life of the nation. I looked in the report for what the Church was doing about this problem, but, apart from a brief reference to a decline in the number of missionaries, I found nothing else. I could not find in the report that Government were in any way concerned about these appalling moral changes. Is it only the monarchy that can set us an example that no other body in the country seems capable of doing? The report should be of concern to parents and teachers who have the prime responsibility for our young people. Do parents still teach children the difference between right and wrong? Do they teach children to say their prayers? Does their home life personify the Christian virtues? I am sure that many households still do all those things. Many young people in our universities, colleges and schools seem well brought up and well behaved. Who are all the people mentioned in the report? I get about a lot and perhaps I do not see many of them. Perhaps bodies such as the Salvation Army see a great many more. Great responsibility also rests on the teachers in our schools, Religious education is vital. I know that that subject is well taught in some schools, but it is less well taught in others. Equally important is the whole moral and social tone of a school. I hope that the teaching profession will study this report and think deeply about it. Clearly, something has gone terribly wrong in many of our homes and schools. I do not believe that the Government can entirely shirk some responsibility for this state of affairs. Despite their undoubted goodness, many Ministers seem shy of mentioning moral issues. That is wrong in a nation with a history such as ours. The remedies for this state of affairs must be wide, but they lie primarily in social rather than in political affairs, private rather than public. To imagine or assert that the Government alone can solve these problems is mere wishful thinking. The remedy, like the fault, lies in ourselves. We need to recover some of our old virtues, which bring greater happiness, if we want to reverse these disturbing trends. Finally, I come to the Church. Surely the bishops, clergy and the General Synod should get their teeth into this report. A little less concern with peripheral subjects—such as women priests or homosexuality—or trendy subjects—such as the Third world or immigrants—and a little more about the moral and spiritual welfare of our people would be most welcome. As a nation, we regularly attended Church, until the nineteenth century. We became people of the book—the Bible—which was read every day and kept in every household and whose glorious language coloured much of our life. All that has gone. Now we seem to be people of the television, with the values of television. I am glad that we have least stopped the cameras coming into the Chamber. The moral picture in the report looks bleak. It is certainly something that we in the House should consider, appropriately, at Christmastide. Of course, millions of people in England still believe in God and try to lead good lives. I believe that the Government and the House should give them some encouragement.4.29 pm
Before the House adjourns for the recess, I should like to raise a matter which has been highlighted in the last few days arising from the sudden and sometimes complete loss of electricity at work and in the home—in other words, how to react in an emergency.
In many parts of the country there has been a cut-off of power, and I am concerned that in certain situations there may be a danger—a foreseen danger—to employees and the public where, during an emergency, there is a crucial need to have, clearly marked and sign-posted, an adequate means of escape from a building or a complex. Escape routes should be provided with emergency lighting and suitably protected to limit fire, smoke and other hazards which might impede safe exit from a building. I appreciate that a battery of national legislation and local regulations already exists, but there is a wide range of such legislation and regulations and considerable variation in the way in which it is interpreted in different parts of the country. Only last week we learnt of a tragedy in London of the kind that I wish briefly to highlight. The point to which I wish to draw attention was summarised in a report which appeared in The Sunday Times on 20 December. In that report there appears a photograph, under which it says:The main headline is:"The killer fire: search goes on for more bodies".
A reading of the first two paragraphs of the report will suffice for my purpose:"Bedsitter fire: safety checks were not made".
"The owner of the block of bedsitters destroyed by fire in west London last week, in which up to 17 people are feared to have died, is the landlord of five other properties that had been strongly criticised for their lack of adequate means of escape. Despite this, the gutted buildings had not been officially inspected for fire risk.
I am glad that my right hon. Friend the Member for Manchester, Openshaw (Mr. Morris) is on the Front Bench today, as he will recall the terrible fire which occurred in a large department store in Manchester not long ago. Lessons ought to have been learnt as a result of that fire, not merely for the benefit of Manchester or that firm, but for the benefit of the whole country. I am concerned about the great danger of a tragedy arising from inadequate checking at proper intervals to ensure that safety installations are functioning properly, are modern and are fitted to meet the needs and demands of the 1980s. There is a strong suspicion that many councils are living dangerously near to the criminal line by deferring renewal of electrical installations as a result of Government pressure to cut back on adequate safety measures. The Government could ease the minds of millions of people if they would consider promoting legislation designed to make it obligatory to provide an adequate escape route from any area where more than 10 people are employed or where, say, 10 members of the public might congregate. Not only should such an escape route be provided, but it should be effectively equipped, kept up to date and adequately sign-posted. It is no good saying that there was a way out if the users of the building, hotel or factory had not had it adequately brought to their attention. The application of this basic safety provision could and should cover a wide range of places—industrial complexes including offshore rigs, offices, shops, hotels, boarding houses, schools, hospitals, airports, railway stations, docks, ships and blocks of flats. Escape routes would need to be adequately lit by emergency electrical light capable of providing an adequate standard of illumination at all times. The equipment should be of an acceptable standard, such as a British or other suitable national standard, properly labelled and certified as suitable and adequate. The recent spate of power blackouts lends urgency to this fundamental safety measure—the need in the places that I have specified to illuminate a designated escape route from an area of potential danger to an area of safety. I also commend this action to the Government as a surefire means of giving thousands of unemployed people a job. These would be real jobs for deserving people in the best interests of national safety. I hope that the Leader of the House will respond with sympathy and urgency.Mel Cairns, an environmental health consultant, visited the five other properties in Bayswater in April this year on behalf of a local law centre. He reported: 'I find the single most disturbing aspect to be the arrangments for safe evacuation of these properties in the event of fire. Without exception, I found these properties wanting in this regard.'"
4.34 pm
Before the House rises for the Christmas recess, it is most important that the subject of vandalism should be raised. The word "vandalism", coined from the Germanic people who ravaged large areas of Europe and North Africa wantonly destroying items of value, is both stark and apt, and it is a word that we hear far too often in our modern society.
Each year brings a frightening increase in this sordid and completely unnecessary criminal activity. In my county of Hertfordshire alone, cases involving criminal damage of £20 or more rose last year to 3,165 from 2,786 the previous year, and the cost increased to £380,000 in 1980 compared with £334,000 in 1979. When one adds to that cases involving criminal damage of under £20, the total becomes 5,673 in the most recent 12 months surveyed, and the total cost £412,0000. The only word to describe vandalism is "appalling". That word effectively describes the nature of the crime, its consequences for property, its effect on people and its costly results for the already hard-pressed ratepayer. In my constituency of Welwyn and Hatfield, in two recent months there was £2,600 worth of vandalism with 40 reported offences and £4,160 worth of criminal damage with 68 cases notified. Whether such action takes place in the town centres or the housing estates, on main roads or country lanes, on public or private property, it is to be condemned by all right thinking people. Perhaps of even more concern is the knowledge that it is in no way likely that all incidents are recorded in the figures. It seems that many more incidents take place than are reported. It is thus impossible to obtain a true picture of this highly distressing modern trend. It is thought that the total number of cases of criminal damage nationwide is well in excess of 300,000 per year, costing more than £100 million. Clearly a problem of that magnitude demands the attention of the Government and of Parliament. The fact that so much vandalism seems to involve young people, with over half the crimes being committed by people under the age of 21 and one-third by those under 17, merely highlights the need for action. I take this opportunity to praise the work of the police in trying to combat this increasing trend. They do a magnificent job not only in my constituency and in Hertfordshire generally, but throughout the country, and I believe that they are firmly supported in their efforts. In the last year, for example, 707 calls from the public were received by the county police headquarters, resulting in proceedings against 112 juveniles. I also take this opportunity to emphasise that it is essential that parents exercise strong responsibility in setting due example to the next generation. It is vital that, so far as they are able, they ensure that their children are fully instructed in not behaving in an anti-social fashion and that they respect the laws of our society. In that way, it is to be hoped that the rising level of juvenile crime will be halted and that far fewer youngsters will come before the juvenile courts. Maximum co-operation should also be extended by schools in inculcating a sense of the value of property and a respect for the values of society into children's minds in their formative years. My right hon. Friend the Home Secretary has in the past put forward a realistic six-point plan as part of a war on vandalism, and already much of this has been brought into effect. I am sure that all hon. Members who are deeply concerned with law and order in our society support those six points. They are the building up of police strength on the streets and the creation of anti-vandal squads on housing estates; supporting measures to improve standards of building materials; expanding attendance centres to use up the leisure time of hooligans and vandals; toughening the regime to shock persistent young offenders into a sense of self-discipline and responsibility; ensuring that courts make parents responsible when children cannot meet fines or compensation for crimes; and putting State support firmly behind policies for rebuilding personal and family responsibility, proper standards in schools, and private home ownership. While the Government are encouraging the implementation of positive action to combat the evils of vandalism, I urge on my right hon. Friend the Lord President the need for a thorough investigation into that most important and tragic subject. Law-abiding citizens will welcome the full facts being ascertained so that even more relevant and effective action can be taken to scourge society of that vile activity. Vandalism is appalling, but the greatest crime of all would be not to recognise the inherent danger to law and order and thereby not to act effectively.4.40 pm
There are greater crimes even than that of vandalism being committed with distressing frequency in more than one part of the country. It is appropriate, on the eve of the House's recess for three and half weeks over Christmas and the new year, to draw attention to the security situation in Northern Ireland and to seek from the Leader of the House a specific assurance. I have given him notice, though to neither the security forces nor the government of Northern Ireland is the right hon. Gentleman entirely a stranger.
From the beginning of November, at about the time when, as it happens, there occurred the ill-omened meeting between the Prime Minister and the Premier of the Irish Republic, there was for several weeks scarcely a single day when at least one outrage, and sometimes more, of a particularly atrocious nature—committed in nearly all cases by the Provisional IRA—was not reported by the news media. So atrocious was that series of outrages that Northern Ireland, in that context, held the headlines and the front pages sometimes for several consecutive days. That continued throughout November, though, happily, during the present month there has been a diminution in the intensity and ferocity of the attacks on the people of the Province. There is no doubt that a reason for the diminution of violence has been the saturation of the frontier areas with the activities of the reinforced security forces. However great the flexibility of operation that the Provisional IRA enjoys—because of the length of the frontier—and the security with which it can move, train and prepare within the Irish Republic, there is a certain level of saturation of the frontier areas with security forces above which Provisional IRA operations become extremely hazardous, and their incidence inevitably falls. That happened as a result of the concentrated attention given to security in those areas from the earlier part of November. That action has undoubtedly made it difficult, to a degree of impossibility, for the IRA to operate as it was initially and has brought some measure of relief—to say that it has brought a measure of security and peace of mind would be a gross exaggeration—to those living in areas where they cannot personally be safe by night or day As the level of the atrocities falls, and as the sense of crisis diminishes, it is only human nature that there should be the danger of a relaxation of effort—a sort of reflex of relief. I pay no attention, and nor do my hon. Friends, to the rumours circulating from time to time about the security forces being reduced in size in any one area. I regard the total size of the Army committed in the Province as a significant feature. Obviously in certain operational matters location and numbers must vary, and vary rapidly, at the discretion of those in direct control and responsible for the operations. However, it would be wrong if, at this moment and on behalf of the Province, one did not seek in the House an assurance from the Government that the intensity and preoccupation that have characterised the past few weeks—since the beginning of November—will not be allowed to flag while the House is in recess. The mere fact that outrages no longer occur at the prevalent rate of four or five weeks ago is not an argument for relaxing effort. If anything, it is an argument for intensifying it. I hope that the Leader of the House will accept that. Perhaps the only feature of recent weeks which is a welcome difference from similar periods in the past is the increased sensitivity of the authorities to the value that they can derive from information provided by the civil population, not only by individuals who take the risk of using the security telephones, but by individuals who are given the encouragement of knowing that they act in concert with others to dare to provide the security forces with the indispensable weapon of information—from those on the spot who are instantly aware of some new feature, change or strange face which may betoken the onset of an operation. The Secretary of State for Northern Ireland paid a compliment in the House on 3 November to my hon. Friend the Member for Antrim, South (Mr. Molyneaux) for the part that he took in organising and improving the flow of information from the frontier areas, particularly to the security forces. That effort ought not to be allowed to flag. On the contrary, the value of that service to the security forces ought to make them and those in charge of the forces all the more anxious to encourage and widen the network which can supply that much-needed assistance. I want the Leader of the House to give a clear undertaking—I am sure that he can do that on behalf of the Secretary of State for Northern Ireland and the Government—that there will be no relaxation during the next month in the security effort in Northern Ireland and that all the methods that have brought a reduction in the level of violence during the past four weeks will be applied as intensively in the coming month as they have been since the beginning of November. That should be the least that ought to satisfy the House, responsible as it is for the lives and property of fellow citizens in Northern Ireland, when it adjourns for three and a half weeks. Some hon. Members will spend the recess largely in the Province, where 1½ million people will have a mixture of hope for the future and fear for the fate of themselves, their families and their Province. I trust that the Leader of the House will respond to my request in the spirit in which it is addressed to him.4.50 pm
As an hon. Member who represents a Cornish constituency, I should like to associate myself with the expression of sympathy, voiced by Mr. Speaker and supported by the whole House, to the relatives of the members of the lifeboat crew who so tragically lost their lives on Saturday evening. As Mr. Speaker rightly said, the whole community of Mousehole has been stunned by the loss of some excellent and worthy men.
Before the House adjourns for the Christmas recess, it is important that there should be a statement by the Government on the implications of the EEC Commission's proposed amendment of regulation No. 724/75 which established the European regional development fund. The proposals would have far-reaching consequences for many regions within the Community that would no longer be eligible for financial assistance. The areas of the United Kingdom that would be affected include Yorkshire and Humberside and the South-West assisted area, that is, the whole of Cornwall and much of Devon. The Commission's justification for this change of emphasis is that Community aid in future should be concentrated on regions with particularly serious structural problems. Apart from the United Kingdom regions I have mentioned, the regions of France, with the exception of their overseas departments, Germany, Belgium, Holland, Denmark, with the exception of Greenland, and Luxembourg, that are now eligible, would not rank for the regional fund's quota assistance in the future. These regions would still qualify for help from an enlarged non-quota section, but, so far as the United Kingdom is concerned, this aid is destined for inner cities and other deprived urban areas and is not likely to be of much benefit to the far South-West of England with its specific problems. I am anxious that this threat to the South-West of England should not turn into a reality. The time has come for some United Kingdom Government recognition of the South-West's position in the context of the proposals by the Commission that have now been laid before the Council of Ministers. The Minister of State, Lord Trenchard, when questioned on this subject in another place by his noble Friend Lord O'Hagan, who represents Devon in the European Parliament, gave a very half-hearted answer. Fortunately, my right hon. Friend the Prime Minister, in answer to a supplementary question by my hon. Friend the Member for Devon, West (Mr. Mills), gave an assurance that she would investigate the matter. However, the assurance was given four weeks ago, and the position remains the same. Before the House rises for the Christmas Recess, I believe that my right hon. Friend the Leader of the House should give an assurance that the United Kingdom does not support the proposition that Devon and Cornwall should be removed from the areas eligible for regional fund aid. To those representing constituencies in the far South-West, the reasons for this unfortunate situation are clear. The South-West assisted area forms part of the official South-West region. This means that Cornwall and Devon find themselves in the same standard geographical region as Gloucestershire, Wiltshire and Avon, with Bristol serving as the regional capital. Hon. Members will have heard me say previously that Bristol is nearer to London than it is to Bodmin. The economy of the far South-West has little in common with places such as Severnside, Swindon, Gloucester and Cheltenham that tend to be characterised by numerous modern growth industries. It is a fact of life that the further west one goes the greater the importance of agriculture and fishing, quarrying and tourism. In the far South-West, there is only scattered light industry since Devon and Cornwall are essentially rural in character. It is a difficult enough task persuading British Ministers and Whitehall, let alone bureaucrats in Brussels, of this fact. In May 1978, I introduced a Ten-Minute Bill that advocated the formation of a genuine South-West region as an attempt to focus Whitehall's attention on the disparity of interest within the existing South-West region and to identify the economic and social problems facing the far South-West. I wish to give the House two sets of figures which I believe highlight our genuine difficulties. They have probably escaped the attention of Brussels. They should certainly be taken on board by the United Kingdom and used in presenting its submission in opposing the Commission's proposals. The first figures concern average earnings. Average earnings in the official South-West region in April 1981 were 94·4 per cent. of the average figure for the United Kingdom as a whole. Average earnings in the Duchy of Cornwall are just 84 per cent. of the United Kingdom figure. In other words, they are 16 per cent. below the national average and also significantly below those for the South-West region. The figures for the official South-West region conceal those for Cornwall. Secondly, I wish to refer to the unemployment figures. I quote the November 1981 figures seasonally adjusted for all employees but excluding school leavers. The United Kingdom unemployment figure was 11·3 per cent. The figure for the South-West standard region was 10 per cent.—in other words, less than the United Kingdom figure. When, however, Cornwall and West and North Devon are isolated, the figure is almost 17 per cent. That is well above the national figure and 68 per cent. above that of the South-West region. These two sets of figures clearly illustrate the predicament of the far South-West. In the context of United Kingdom regional aid, the assistance made available to the South-West assisted areas is far below that received by other regions of the United Kingdom in terms of the amount per head of the insured population. It is significantly below that made available to Scotland and Wales although the intensity of our problems is comparable. I wish to leave my right hon. Friend in no doubt that the problems associated with rural deprivation are just as significant in economic and social terms as those connected with urban areas and the older industrial regions of the United Kingdom. That is why I seek an undertaking from my right hon. Friend that the United Kingdom will robustly defend the interests of the South-West when this proposed amendment of the regulation is discussed by the Council of Ministers.5 pm
I want to say a few words before the House adjourns about the incident to which Mr. Speaker and the hon. Member for Bodmin (Mr. Hicks) referred—the tragic loss of life and the maritime disaster that happened off the coast of Cornwall on Saturday. It involved the tragic loss of the lifeboat and its crew in an attempt to save the lives of those on board the vessel "Union Star". Sixteen people tragically died. I endorse on behalf of myself and the House the comments made by Mr. Speaker, and also the feelings of all seafarers in this country—I am an ex-seafarer—about this great and tragic loss.
The relatives of the deceased, and particularly those of the lifeboat men, worry every day of the week about whether their relatives will return. Lifeboat men spend considerable time, courage, energy and dedication in rescuing seafarers of all nationalities. When tragedies of this nature occur, we often express appreciation for their dedication, but we should remember that probably tonight, the next night and many more nights men will take to the lifeboats to save human beings in dangerous circumstances. I want to say a few words about the circumstances of this tragedy. Seafarers all too often witness circumstances similar to those in which lifeboat men risk their lives. An editorial in The Times today described them asSuch men have saved hundreds of thousands of lives. There are thousands of people alive today who owe their lives directly to them, working in conjunction with the helicopter pilots, the air-sea rescue services, and the coastguards. They all co-ordinate in an attempt to provide rescue services that are desperately needed by seafarers of the world. I stress "of the world", because no one ever asks the nationality of the people on board a vessel in trouble. I want to comment on the international implications of these incidents, and ask whether we are doing all that we can to prevent them from taking place. We should avoid subjecting these courageous men to more risks than they need take in this necessarily dangerous occupation. I have always admired the voluntary dedication that is shown by these men in rescuing seafarers. However, we tend to exploit that wonderful co-operation and voluntary dedication too much. We tend to believe that, because the service that is given by these men is voluntary, the facilities and boats on which they depend should be provided by voluntary subscription. I have never completely accepted that point of view. I am grateful to all those people who give money to provide boats so that the lifeboat men can take to sea and rescue people at the risk of their own lives, but those boats have varying degrees of ability. The boats reflect the technologies of the times in which they were built. Some boats are safer than others. The fact that we tolerate that is a reflection on society's priorities. In my opinion, one lifeboat station should not have a boat that is any safer than that of another station. I do not suggest that some boats are not safe, but there are boats of different abilities because of the technology and design and other factors. Some boats, for example, have flotation bags, and others are designed so that they automatically right themselves. It is vital that every lifeboat station should have the best possible equipment, particularly bearing in mind the fact that the men are paid only £3 a day to go out and risk their lives on behalf of their fellow men. Surely it is little enough to expect the community to provide them with the best facilities to carry out that courageous act. At this moment, when we are thinking about the deaths of the lifeboat men, we should not forget those who risk their lives and show equal courage in helicopters. We see them on television, and I often wonder how much courage it takes to handle aircraft in these dangerous situations. My own union, the National Union of Seamen, at a ceremony 12 months ago at its conference, invited representatives of the air-sea rescue services so that we might express our deep appreciation of the work that they do on our behalf. We are fully aware of what they do. The company involved in this incident is not unknown to seafarers or to seafaring unions. It has been known to use the flag of convenience and to cut corners. This is not the time to make an issue of flags of convenience, which I have brought to the attention of the House on numerous occassions. There will be other opportunities to do so, not least when the trade union legislation is introduced to make it more difficult for us to continue our fight against companies which hire crews who, in some instances, contribute to the loss of a vessel. I do not make that charge lightly. This company lost a ship in 1977. the vessel was called "Union Crystal", and five men died in that incident. It sailed under a Singapore flag. There was not even a public inquiry. I believe that a secretary in the Singapore consultate in London carried out some form of inquiry., but it was not public and we never knew the circumstances surrounding the loss of those men. There was no outcry, but we as seafarers realised how the law was exploited in that case. On this occasion, the vessel was flying an Irish flag, and it belonged to the same company. I recall that the lifeboats of Fraserburgh and Longhope were lost in an effort to help vessels run by that type of cowboy operator. I hope that in an inquiry—which I am asking for—we be given the full facts of this incident. There is concern among seafarers that if vessels are not up to a particular standard, or if crews are not competent, or if the companies which run the vessels are more concerned with commercial factors than with the vessel's safety at sea, we unnecessarily put at risk lifeboat men who need not have been put in that situation. There is evidence that that has occurred in the past. I suggest, on the amount of evidence that is available so far in this case that an inquiry may reveal that the same thing has happened here. T shall be more specific. The House will recall earlier incidents in which there was a conflict about whether a coastal State could intervene directly and control a ship which belonged to another country—in this case, Ireland. In the case of the "Torrey Canyon"—a flag of convenience ship—in 1965, and in the case of the "Amoco Cadiz" in 1968, there was haggling among the owners, the company and the tug owners about whether the vessel could have been handled more safely at an earlier stage, thus avoiding the ensuing pollution. That has been a matter of concern to the international community, so much so that it took action—and rightly so, in my opinion. It found it unsatisfactory that salvage tugs could dance attendance on vessels and argue about a price before vessels crashed on to the rocks causing loss of life, cargo and everything else that goes with such a tragedy. We as an international community have said that that is not acceptable. We have said that coastal States—in this case Britain—should be able to intervene and direct the owners or the captain, in the interests of the coastal State. International law—a convention, both in Marpol and the intervention convention—has given authority to coastal States to intervene in that situation. However, there is one grave qualification. It is that the ship must be carrying oil or hazardous chemical substances which cause ecological damage and make a mess of beaches. But if seafarers' lives are at stake, apparently, no one suggests that the coastal State should gave that power. If the "Union Star" had been a tanker and the coastal State thought that commercial considerations were hampering the rescue operation, it could have overridden the power of the State in which the ship was registered, its owners or the captain who, in the circumstances, might have been reluctant to take a decision. Studying the reports of the coastguards and others, it is clear that from the time the vessel reported that she was in difficulty and the alarm was raised at six o'clock in the evening of Saturday, some three and a half hours elapsed before any effective action was taken by way of giving the vessel assistance. It is also clearly on record that tug boat assistance was offered to the captain of the vessel. There was indecision for more than one and a half hours, and some reports say for three hours. In those terrible and hazardous circumstances, half an hour would have been a long time, bearing in mind that the vessel was being driven nearer and nearer the rocks. It is apparent from some reports that the captain was asked to agree to what is known as the open Lloyd's formula by which, instead of a price being determined on the spot, Lloyd's assessors do it after the danger has passed so that immediate help can be given to the ship. In this case, apparently, the captain did not agree. Unfortunately, he is one of the deceased, which makes the available evidence extremely limited. But it is clear that the owners did not agree, on their own admission, until about seven o'clock, when they were first contacted. It is not satisfactory that there should be any delay on the part of a vessel's captain in accepting an offer of assistance by a tug, because as a crippled vessel drifts towards rocks it gets into increasing difficulties resulting in a loss of the kind that we witnessed over the weekend where a ship is involved in a kind of dance of death, with the lifeboat and the rescuing helicopters being called out almost at the last moment. It is an unnecessary risk which the community should not be prepared to tolerate, all because someone cannot agree how many thousands of pounds should be paid to effect a proper rescue. British seamen find it totally unacceptable that the House should allow circumstances of this kind to arise, and they find it especially offensive that the Governments of the world can agree internationally that when oil spills on to our beaches we are prepared to intervene but that if seafarers' lives are at risk we are not prepared to apply the same rules. It may sound cynical, but I understand that blood washes easily off beaches but that oil does not. It may not cost the community as much to clean blood off beaches as it does to clean oil off them, but it is a point not too well appreciated by British seafarers, and they are angry that we in the House do not do enough when human life is at stake. I hope that I have said enough to make it clear how our seamen feel. But I make one positive statement to the Leader of the House. The "Union Star" was an Irish vessel, but there were several of our nationals serving on it, including one from the area of my constituency in Hull. It is crucial that we have an inquiry into the circumstances surrounding the vessel's loss. I have no doubt that it will be possible to obtain the full co-operation of the Irish Government, but British seamen cry out for action by the House. The very least that we want is an investigation into the circumstances surrounding the loss of the vessel, of the seafarers who served on her and especially of those brave souls on the lifeboat who may have died needlessly and whose surviving colleagues risk their lives day and night and to whom we should be eternally grateful."Brave men of the sea".
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The hon. Member for Kingston upon Hull, East (Mr. Prescott) made a very powerful case which I am sure will have the attention of Her Majesty's Government. We all share the sympathy and the feelings which the hon. Gentleman expressed about this terrible occurrence off the Cornish coast.
The matter which I feel should be discussed before the House rises is one which has been mentioned on many of these occasions. Once again the House is proposing to adjourn for a recess without having debated the subject of immigration and repatriation. Time after time when the Adjournment motion has come up an hon. Member has risen to point out that for a very long time now the House has not debated this very important subject. On 8 December, some 12 days ago, the Office of Population Censuses and Surveys published the latest figures on the growth of the immigrant and immigrant-descended communities in the country. It makes the case that I wish to put before the House about why the matter should have our attention. The figures are quite shattering. In the whole of England and Wales in 1980, one child in 12 was born to a new Commonwealth or Pakistani mother and one child in seven was born to a mother from somewhere overseas. In the whole of Greater London, 23 per cent. of the babies born last year were born to mothers who were themselves born in the New Commonwealth, and 35 per cent.—well over one-third—of the babies born in London last year were born to mothers who were not themselves born in any part of the United Kingdom. Looking at some of the parts of London, we see that in Brent 64 per cent.—two-thirds—of the births were to mothers from overseas; in Ealing, 53 per cent.; in Hackney, 50 per cent.; and in Haringey, 53 per cent. This is not a phenomenon limited to the boroughs which are associated particularly with immigrant communities, because we see that in Kensington and Chelsea 55 per cent. of the births last year were to mothers from overseas and that here in Westminster 55 per cent. of the children born last year were born to mothers not themselves born in any part of the United Kingdom. The proportions of New Commonwealth and Pakistani births in the same London boroughs were, respectively, 45 per cent., 40 per cent., 37 per cent., 29 per cent., 41 per cent. and 40 per cent. The statistics, which are quite staggering in themselves, are subject to the very powerful qualification which the Registrar General himself makes. He says:The figures that I have read out are solely the figures of children born to mothers who were not born in the United Kingdom. Increasingly, every year, there is a proportion of people who may be of New Commonwealth ethnic origin or descended from parents recently come from some other part of the world to Britain but who, having been born in this country, are on the indigenous side of the statistics. I emphasise that because it demonstrates the urgency of the whole matter. The right hon. Member for Down, South (Mr. Powell) has recently complained in the House about the Government's failure to face up to the extrapolation of these statistics. They show the pattern of the future population."When using information about live births analysed by birthplace of mother it is important to remember that there are an increasing number of women in the younger childbearing ages who are of New Commonwealth and Pakistani ethnic origin but who were themselves born in the United Kingdom."
I apologise for intervening. Will the hon. and learned Gentleman reconsider using the word "extrapolation" as it may cause misunderstanding? Extrapolation can mean that one simply continues a line of a graph on the assumption that it will go on in that way. In the context that the hon. and learned Gentleman is using the word, and in which I have addressed the Government, it does not refer to anything of that nature; it refers to the future inevitable consequences of the present make-up of the population.
I agree with the right hon. Gentleman, but there are many complexities and they are perhaps best not gone into. One can freeze the situation, look at the existing age groups in the population and, assuming a standstill, extrapolate the composition of the nation in, say, 20 or 30 years' time. I was using "extrapolation" in a slightly wider sense than that, although it embraces it. I was assuming that the proportion continued indefinitely because nothing was done about it. It is right to call that an extrapolation. One can then calculate with Inman's tables or with a Japanese pocket calculator the year in which the indigenous population will be outnumbered by those who have recently entered this country.
The statistics that I gave are for mothers born outside the United Kingdom, and not mothers of New Commonwealth ethnic origin. We are talking about a rate of change within one generation. With that in mind, one must look at such figures as 55 per cent., 50 per cent. and 45 per cent. and ask how a nation can retain any sense of identity with a change of that magnitude, at that speed. It is absolutely shattering that the population of our principal cities should be changing at that rate. Although I gave the figures for London, the provincial cities present a similar picture. For example, 44 per cent. of births in Slough are to mothers born overseas. For Leicester, the figure is 37 per cent. and for Birmingham a similarly high figure. The problem affects the whole of England and Wales, and it is compounded by the rate of new immigration which is still about 50,000 a year. Varying figures are given. Sometimes they take into account those who stay without permission and illegal entrants, and sometimes they do not. By and large, however, and taking one year with another, there are 50,000 new immigrants every year to be added to that corpus of alien population. By "alien" I mean that they come from overseas and often from remote places. Despite the enormous consequences of immigration, we have not debated this subject during this Session and there was no serious debate on the matter during the previous Session. It is right that unemployment should be discussed every week in Parliament, because it is a serious matter. However, it can be cured. This problem is difficult to cure and that is why it is not debated and the House will adjourn without discussing it. The Government and the Opposition Front Bench are embarrassed and do not know what to say or do. I hope that my right hon. Friend the Leader of the House will bear in mind that if we do nothing the future will be predictable. If everybody is potentially equal, if every definable group of human beings is potentially equal to every other group, and if qualitative judgments are iniquitous or even illegal, numbers alone must count. If numbers alone count, the Western peoples are doomed. The rate of increase among their populations is much slower and that factor remains constant. This Western people will be doomed unless the Government, the Opposition and all responsible politicians in Britain decide to get over their inhibitions, consider what is to be done and do something about it.5.26 pm
I wish that the hon. and learned Member for Beaconsfield (Sir R. Bell) would approach his subject more positively and imaginatively. I shall link the subject that he spoke of to to the problems that I wish to raise, which are related to the National Health Service. I am glad that the right hon. Member for Down, South (Mr. Powell) is in the Chamber because he was Minister of Health when the then Conservative Government were extremely anxious to bring black people into the country from the West Indies and elsewhere to man the National Health Service.
Anyone who has recently been to a National Health Service hospital in London—as I have—and seen the dedicated work undertaken by coloured nurses and ancillaries, will appreciate that we have much to be thankful for. Many white people will not do such jobs. Without those coloured immigrants and without the coloured people who were born here, the National Health Service would come to a full stop. Some months ago the Department of Health and Social Security set up a departmental committee to consider other ways of financing the Health Service. Repeated statements by Government spokesmen have made it abundantly clear that the Government are intent on making a fundamental change in the way in which we finance that wonderful service. They are intent on introducing, before too long, a completely different system of financing the Health Service through direct taxation. The Government intend to finance it by insurance. That insurance will be taken out by the private individual for his private benefit. If he cannot afford the premium, it will be too bad. He will have to do without the service that he may require. That principle, operates, in large measure, in the United States. Anyone who has been there and seen how obscenely its health service operates would want none of it here. The Royal Commission on the National Health Service examined the idea in some depth and rejected it because it would undermine the fundamental concept on which our Health Service is based—that if one is ill one receives, the necessary treatment and not the treatment for which one can pay. That principle would be undermined by the Government's idea. When will the report be produced? Will it be published? Will the Government provide time to debate it on the Floor of the House? It is an urgent matter. The trades unions, which put forward an informed opinion, are violently opposed to undermining the principle on which the Health Service is based. I hope that the right hon. Gentleman will carefully consider whether and when the report should be made available to the House. I hope that it will be available during the recess, if not before. The Government have had the report for months. Surely it is not too much to ask that it be made available. The Government are examining alternative ways to finance the NHS, and the report should be made available to the House within a short time. Inevitably I wish to refer to the question of nurses' pay. Before the election the Prime Minister said that she wished to treat nurses no less generously than the police and the Armed Forces. Having taken office, her tune is very different—if not diametrically opposed—to her once-held view. The right hon. Lady met nurses' representatives last Friday and discussed their pay. She had previously refused to meet them. She made appropriate noises—as she would—about jam tomorrow. She said that they could not have anything this year, but that things might be different next year. We have often heard those words from the Prime Minister and the Minister of Health. The Minister gave an undertaking to the nurses that a new formula for deciding their pay would be agreed this year. It is quite clear that that promise will not be fulfilled. On the contrary, the Chancellor of the Exchequer and the Government have said that those in public employment must settle for a 4 per cent. increase this year. A day or two ago it was announced that inflation is running at 12 per cent. a year. Those dedicated men and women in our hospitals will be asked to submit to a substantial reduction in their standard of living. They are being asked to do so at a time of year when we can all see their dedication as we watch the television. When we are enjoying our Christmas dinner, they will be working on the wards, looking after the children and the elderly, yet we clobber them year after year in their emoluments. It is not good enough for the Government to say that the nurses should be treated less generously than the police and Armed Forces. I do not believe the Government when they say that the money is not available. The Government can always find the money. Year after year they have found substantial amounts to pay the police and the Armed Forces—and good luck to them. But a nurse is every bit as valuable a member of society as any policeman, soldier, sailor or airman, and should be treated as such. But the Government act on the principle that nurses are too decent and gentle to strike—so they strike them. I hope that the right hon. Gentleman will give an assurance that the Government will accept the principle that was enunciated by Ministers when they were in Opposition, that nurses must be treated in the same way as the other groups that I have mentioned. I raised a question with the right hon. Gentleman during Question Time today relating to Committees of the House. He said that a new Procedure (Supply) Committee should devote its attention almost exclusively to the improvement of the control of public expenditure. That principle is unexceptionable. However, when the Public Accounts Committee—of which I am a member—produced a unanimous report a few months ago recommending ways to control public expenditure, the Government rejected it. The PAC sought to enlarge and improve the role of the Comptroller and Auditor General. We debated the report on 30 November. Never in my long experience in the House have I seen it so united in unanimously condemning the Government's view of a report. The Government virtually rejected the recommendations of the PAC—recommendations approved by the House. An early-day motion on the matter has been signed by more than 250 hon. Members supporting the PAC and urging the Government to accept its recommendations. The Government are holding out. Let not the right hon. Gentleman complain too much when we criticise him. He says that he wants to improve the control of public expenditure but, when he has the opportunity to do so he rejects it. It is no good his saying, as he did this afternoon, that it is a matter for the Chancellor of the Exchequer. It is a matter for him because the House decided that it wanted the recommendations of the PAC to be carried out by the Government. The measure of the Government's confidence in the House and their concern to accept its will is at stake. I hope that before the House rises on Wednesday the right hon. Gentleman will assure us that the Government will go a long way towards accepting the recommendations of the PAC. Unless he does, nobody will take him seriously when he says that he wants to improve the control of the vast amounts of public expenditure that far too often go through the House on the nod. Hundreds of millions of pounds are allocated simply by a nod of the head. That is disgraceful, and the sooner that it is remedied, the better.5.38 pm
I had not intended to refer to the National Health Service, but the hon. Member for Fife, Central (Mr. Hamilton) has tempted me to do so. I rather deplore his closed mind towards the working party. It has been established to examine alternative means of financing the NHS. It is wholly reasonable that a Health Service that was conceived between the wars, promulgated in the form of the Beveridge report in the 1940s, and later implemented should now, more than 50 years later, be examined. It is correct to suggest that people are prepared to accept greater responsibility for the health needs of themselves and of their families. I hope that the working party will suggest a means by which they may be encouraged, with incentives, to support themselves by accepting greater responsibility for the health needs of themselves and their families. I look forward to the recommendations on how that can best be achieved.
Before agreeing to the Adjournment of the House for the Christmas Recess, I know that the Bournemouth borough council will want me to express its continuing concern over the working of the Housing (Homeless Persons) Act 1977 and its effect particularly on the housing authorities in seaside resorts. This is not the first time that I have referred to the matter in the House. It was the subject of an Adjournment debate that I initiated in August 1980. I complained then about the length of time that the Government's review of the working of the Act was taking. I repeat that complaint now, because we are told that the review is still not yet complete. The review has been continuing for four years. The previous Government began it in 1978, so presumably it was well advanced when this Government inherited it. In February 1980, my hon. Friend the Minister for Housing and Construction said that the Government would complete the review as soon as possible. In July 1980, he said that the Government would make an announcement on the conclusion of the review after the Summer Recess. He meant the Summer Recess 1980. No announcement followed. In November 1980 my hon. Friend said that the Government hoped to announce their conclusions fairly shortly. That was a year ago, and yet still no announcement has been made. I wonder whether today, after over 40 months of review, my right hon. Friend, when he replies to this debate, can give the House a firm undertaking on when we may expect an announcement that the review of the 1977 Act has been completed, together with a statement on the amendments that the Government propose. Let me remind the House why seaside resorts such as Bournemouth and Christchurch—I am glad that my hon. Friend the Member for Christchurch and Lymington (Mr. Adley) is here to support me in this respect—are so detrimentally affected by the workings of the Act. For all the obvious reasons, seaside resorts act as a magnet for the homeless and those with no fixed abode, in the same way that they attract holiday makers, not just during the summer but all the year round. This migrant population is able to obtain short-term winter lettings and holiday flats without the protection of the Rent Acts, and then becomes homeless when the accommodation is required for summer letting. Even though the codes of guidance accepted by the local authorities have been amended, the presence of these homeless people puts a continual strain on local housing resources. Last year, of the 152 homeless families that were housed in Bournemouth, 132 were accommodated in council property. Yet only 198 council homes became vacant last year in Bournemouth, which means that the homeless took up 66 per cent., with only 33 per cent. left for people who have had their names on the housing waiting list. Thus, the effect of the Act means that many local people do not have the opportunity to move into council homes that would otherwise be available to them. That includes many deserving elderly and disabled people, riddled with arthritis and badly in need of ground floor accommodation, and young couples and single-parent families, many of them very deserving cases. I have met them at my surgery. They have had their names on the 1,400-strong housing waiting list for years, and they are being overtaken by people who have no local connection. That is an abuse that we had hoped the Government's review would have highlighted by now and would have resulted in amending legislation. We still live in hope. Another aspect of the working of the Act has been highlighted by the recent Court of Appeal case involving a dispute among Slough, Ealing and Hillingdon borough councils concerning the extent of the duty to provide housing with a priority need and with a local connection within the area of the authority concerned. Moreover, there is a suspicion that some local authorities are using the Act to the detriment of others. For example, social services staff in Bournemouth recently found a selection of letters stapled together, which originated from one of the London boroughs and which were clearly meant to have been sent to another office in that borough. Attached to one of the letters was a handwritten note which stated:The Government cannot allow another recess to pass without facing up to the fact that amendments to the Housing (Homeless Persons) Act are long overdue."Can we palm off financial responsibility on to Dorset when the family moves to Bournemouth?"
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I envy the hon. Member for Bournemouth. East (Mr. Atkinson) both for the lush pastures that he represents and for his small housing waiting list of 1,400. There are 10,000 people on the housing waiting list in the London borough of Brent, which I represent. If I had 1,400 on the list, I would think that I was living in paradise.
Normally, I would concentrate solely on my anxieties as to why the House should not adjourn for the Christmas Recess, but today I should first like to take up one of the points made by the hon. and learned Member for Beaconsfield (Sir R. Bell). He mentioned my area, with its 64 per cent. of ethnic minority babies as being top of the list. He is right, and I wish to put on record how proud I am of the multi-racial society that I am privileged to represent. I find it difficult to believe, at a time when the birth of a baby is the reason for our recess, that the hon. and learned Gentleman, instead of sayingis saying "Suffer the little children with white faces to come unto me, and if they happen to be black I shall produce statistics to show why they should not be suffered in this country". The hon. and learned Gentleman's speech was obnoxious and offensive. My hon. Friend the Member for Fife, Central (Mr. Hamilton) spoke of black nurses and ancillary workers in the National Health Service. At the time of which he was speaking, in my local hospital one in three nurses were black. I can take no pride in the sort of contribution to the debate made by the hon. and learned Member for Beaconsfield. I am concerned about those people in my area who are facing redundancies and factory closures and I appeal to the Leader of the House to consider their plight. I know that he has a difficult task today because we are pouring into his ears matters that are the responsibility of all his Cabinet colleagues and he has to interpret them to his right hon. and hon. Friends. The Park Royal industrial estate in my area has become a desert. In my plea I am joined by the hon. Member for Ealing, Acton (Sir G. Young). He and I support the voluntary assistance for factories in the area through the medium of the Park Royal Trust. I feel that I am a voice crying in the wilderness because that area, which was one of the prime engineering workshops of the country, now has vast open spaces and warehouses. The headline in my local newspaper this morning stated that another factory was to close—Smith's Food—and that there would be 200 redundancies over the next few months. I absolve the Government from some of the responsibility, although there has been an acceleration in redundancies and factory closures in the past two years but there has been a rundown for the last decade. This is an area that should be given inner city area status. In Brent there is a 30 per cent. ethnic minority grouping and 10,000 people on the housing waiting list. Factory after factory has been closed and redundancy after redundancy has been declared. For many families in my constituency the prospects for Christmas and the New Year are bleak. Unemployment figures must not be regarded as mere statistics. I know that the Lord President will be conscious of the many families that will be facing an anxious Christmas as they have the misfortune to be part of the unemployment statistics. When the first telephone was installed in the House at the beginning of the century the firm responsible was Associated Automation, which was then known as Hall's Telephone. Associated Automation has 550 employees and it will close in the New Year. It has exported telephone systems throughout the world. Oxford University Press has declared 347 redundancies. In the main the smaller firms have gone to the wall, gone bankrupt or had to reduce their staffs. Unfortunately, important firms with national reputations are now finding themselves in similar difficulties. Perhaps no firm is better known than Guinness of Park Royal. However, it has been necessary to set up a jobcentre with in the factory because of the 200 redundancies that have been announced and are being implemented. Next door to the Guinness factory is Heinz, an internationally famous firm. It is moving its baked bean production from Park Royal to Wigan. The result is another 200 or so redundancies. I shall refer to some of the companies that have announced redundancies during the past 12 months. The list includes Caxton Steel, Charrington and Company, Unigate—which is a large purveyor of milk in London—and Freightliners. The manufacturers include exporting firms such as Meyer Dumore, Audan Finishers, and David Brown Gears, which has made gears for many major car companies for many generations. In the printing and bookbinding sector redundancies have been announced at Alfred H. Cooper, the well-known name of Waterlow and Sons, Hogarth Press, Leighton Straker and, as I have already mentioned, Oxford University Press, the latter company having nearly finished the processing of its 347 redundancies. In the State-owned sector, Acton power station, which is within the CEGB, has declared 24 redundancies. There are always many pressing demands when there are areas of deprivation and poverty. I am not trying to argue that Park Royal in my constituency should have greater priority than some of the areas that have been recognised as having inner city problems. My contention is that Park Royal should be given equal status and inner city support. It is already a fairly derelict area and unless the Government do something soon it could lead to all the problems that have arisen elsewhere in areas such as Toxteth and Brixton. The same ingredients exist in my constituency. The serious outbreaks that have occurred elsewhere have not taken place in my constituency because of years of devotion by all to secure integration. It is a first-class multi-racial community, but if the economic pressures are not lifted the tensions that build up in any society will increase in intensity in my constituency. The problems to which I have referred are serious and we should return to this place before 18 January. The House should take note of the moving plea of my hon. Friend the Member for Kingston upon Hull, East (Mr. Prescott), who spoke with compassion and understanding. The problems that the right hon. Gentleman has heard outlined this afternoon deserve serious consideration by the House. Instead of delaying our return until 18 January, let us come back on 11 January to deal with these issues and thus satisfy our responsibilities to our constituents."Suffer the little children to come unto me",
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I wish to support what was said by the right hon. Member for Down, South (Mr. Powell) about the need for the House to give more attention to ridding the poor and suffering people of Northern Ireland of the scourge of terrorism.
I wish to draw attention to the problem that is posed by the escape of murderers and other wanted criminals who cross the border between Northern Ireland and the Republic. The problem has existed for more than 12 years and it is an affront to the Republic and the United Kingdom that it should still exist and that it should defy the attempts of lawyers and statesmen of both countries to solve it when similar problems that existed between States with common frontiers were solved perfectly amicably in other parts of Europe. One of the reasons for this long-standing problem is that the United Kingdom has tolerated for too long the excuses, the smokescreens and the other stories that have been put up by the Republic for its so-called inability to do anything about the problem. As a result, the Republic has been a haven for IRA murderers who have escaped from Northern Ireland having perpetrated their foul deeds. Those people have been able to go scot-free within the Republic. It is said that there are about 600 such people in the Republic who are wanted by the Northern Ireland police. They are scot-free because the Republic has not done the decent thing. It has failed to make proper arrangements for their extradition to the North, to the United Kingdom. The current red herring that is further delaying the adoption of a common-sense approach to the problem arises from the recent meeting between the Prime Minister and the Premier of the Republic, at which it was decided that the problem of criminals escaping from the North to the South, where they are free from any attempt by the authorities of law and order to capture them, should be referred to the Attorneys-General of the two States. That has been almost the only reference to the problem in recent times. The two Attorneys-General have apparently met twice. There has been a previous attempt to meet the problem other than by the normal method of extradition that applies to most countries, and that is by jurisdiction being given to each territory concerned to try offences committed in the other territory although the criminal is within the first territory. That is the purpose of the Criminal Jurisdiction Act 1975. The Republic has similar and corresponding legislation, but as one might expect of an arrangement that was devised basically to avoid effectiveness and to excuse delay, it has been little used. It is ineffective and the only case has been dealt with under its provisions. Is the one that took place following the murder of Captain Nairac, the British Army officer. Many other cases could have been dealt with under the provisions of the Criminal Jurisdiction Act 1975, but they have not been terminated successfully, largely because the Republic is unwilling that inquiries about an offence committed in Northern Ireland should be undertaken in the Republic, where the alleged criminal is hiding. We are now driven to another expedient, or excuse, for not carrying out the commonsense arrangement of extradition. The new remedy proposed by the Republic—I am glad to say that the United Kingdom Government have not acquiesced formally to the proposals—is that there should be some form of all-Ireland court, by which one understands a criminal court that has jurisdiction in both the Republic of Ireland and in that part of the United Kingdom known as Northern Ireland. To define the arrangement in that way reveals how impossible it would be. It seems unlikely that the British people would tolerate extra-territorial jurisdiction being given to a criminal court that owes its existence at least partly to an Act of a foreign State. One cannot imagine that the proposal will be successful, quite apart from the multifarious problems of competing jurisdictions in the two parts of the island of Ireland. The real solution lies, as has been adopted elsewhere, in proper extradition arrangements operating between the Republic and the United Kingdom. It is fair to say that there is an extradition arrangement between the United Kingdom and the Republic. For most criminal offences it is a simpler and more expeditious arrangement than applies between the United Kingdom and other countries. It is based upon the backing of warrants system and does not involve the production of evidence to constitute a prima facie case against the criminal. It is similar to the arrangement between the courts of England and the courts of Scotland. Therefore, it is a good arrangement that applies in most cases where extradition is needed for criminals who escape from one jurisdiction to another. However, political offences are exempt from the arrangement and it is on those grounds that the Republic has hitherto been unwilling to extradite IRA criminals to the United Kingdom. The old problem of political offences has bedevilled international relations for two centuries. With increasing international terrorism, gangsterism and violence of the sort that we see around the world every day, civilised nations have come to the conclusion that it is no longer right that we should give immunity to terrorists simply because they have committed their offences for political motives. Many people nowadays, when they think of terrorism other than that within the United Kingdom, believe that there should not be immunity for the perpetrators of the sort of acts that occur regularly in the Middle East and elsewhere. Therefore, the European Community, represented by the Council of Europe, has devised an international convention for the suppression of terrorism that provides specifically that there should be no immunity for terrorists. That convention has been signed by most of the countries of Western Europe, but not by the Republic of Ireland. The reason is clearly because the Republic of Ireland is not prepared to extradite IRA murderers and criminals accused of offences perpetrated in Northern Ireland to the United Kingdom. That is the obstacle upon which many past attempts to deal with the problem have foundered. It is also true to say that the Republic's definition of a political offence is wider than that adopted by the United Kingdom. One cannot complain about that, because it is the same wide definition as is adopted by, for example, France. However, the sincerity of the protestations by the Republic of Ireland that it wishes to stamp out terrorism in Northern Ireland by dealing with the criminals who are hiding in the Republic, can be tested by its efforts to overcome the problem. It has not signed the convention and does not propose to sign it. Why is that? The answer that one gets from intelligent Irishmen is that political offences qualify for exemption from extradition under the common principles of international law. The Republic's constitution provides that its laws shall at all times be consistent with the principles of international law—quod erat demonstrandum, the Republic cannot possibly alter its laws to provide for the extradition of terrorists. It cannot possibly sign the European convention for the suppression of terrorism because to do so would be contrary to its constitution. It is another of the red herrings and foolish excuses that the United Kingdom has constantly accepted from the Republic. We accept that there might need to be an alteration to its constitution for that to be carried out. but it is not necessary. If the Republic were to sign the European convention that, by the fact of the signature and the ratification, would constitute part of the principles of international law. Any obligation deriving from the international treaty and the principles under it must necessarily be part of the principles of international law, or the Republic would never have signed as many international conventions as it has. In that respect alone, the Republic pleads that it would be unconstitutional to provide for the extradition of terrorists from the Republic to Northern Ireland. If the Republic were to do what most other countries of Western Europe have done and accept the convention, it would then be possible for criminals who have committed terrorist offences in Northern Ireland and who have escaped to the South to be returned to the North, where they are wanted by the courts, without more ado. However, the present position, which we tolerate and which we allow to continue while we discuss other ways round what appears to be the Republic's genuine objection, frustrates any solution to the problem. We must be more realistic and insist that the Republic takes the same view as other civilised States. The problem can be dealt with decently and honourably by extradition. Immunity from extradition should be taken away from the terrorists. If the Republic continues to resist doing that, we cannot but doubt its sincerity in wishing to solve the problem. The Government should be tolerant, but they should insist that the convention be signed.6.10 pm
I considered whether what I wished to say is more relevant to the Class IV debate on the Consolidated Fund, but it does not strictly come under that heading, so it is more appropriate for me to speak on my region in this debate. I have taken great care to satisfy myself on that point for the convenience of the House.
I shall be deeply grateful to the hon. Gentleman if he can avoid the subject on the Order Paper. As I have said, it is not playing the game for hon. Members lower down in the list for the Consolidated Fund debate to jump the queue and to use prime time in the Adjournment debate.
I can go further. I may not even be as precise as I said. The debate is on Durham, and my constituency is not in that area.
I wish to criticise British Shipbuilders. I believe that people concerned with the problem will feel that my intervention in the debate is justified. In the past 30 years my region has suffered considerable problems. All those years ago it was vividly included in the concept of two nations—the developing area further to the South and the industrial deprivation and increasing unemployment in the North. I do not question the approach of Governments of either party in their regional policies to help the aching and persistent economic hardship, but at the end of 1981 in my constituency we are suffering more than ever, and that could have been avoided. In studying the problems in areas such as Hartlepool, people take account of the structure of industry, technological changes, the passing of labour-intensive industries, environmental dereliction and related problems. They seek a new approach. Although Governments of both parties have a commendable record, certain factors are not in their hands, although they are aware of the nature or the problem. Decisions on development or factory closures are determined by other forces. When considering the prospects for a region people look to the pre-eminent features that have affected its economy over a time, such as the continued loss of employment arising from the rationalisation and contraction of traditional industries, particularly shipbuilding and steel. Another factor is the severe limitation on the growth of public expenditure and its effect on public service employment. There is also an increasing dependence on indigenous industry, particularly on small firms. I have studied the analysis and prospects with the greatest of care, and my most recent experience convinces me that the Government should do more. When they provide grants and loans to developers, they should insist on firm accountability. In my area we believe that we are tied too much to slave factories, whose parent companies and headquarters are outside the region. At the slightest economic draught, factories are withdrawn from the areas where the Government have put in money. The company usually makes its decision before the disqualification period for the payment of the loan. When hon. Members question such decisions we are told by the Department that it cannot give details of the grants and loans because of commercial confidentiality. For example, TRL had a substantial grant to establish a factory in Hartlepool and also received substantial financial assistance from the National Enterprise Board and, I understand, nearly £¾ million from the British Steel Corporation. But, within a very short time the company decided to close. The manager was an American living in Geneva. It was not without coincidence that he was also a senior executive of another company that had similar initials and was not far from where he was living. He was seconded to the Hartlepool company and his salary was paid to the company near Geneva. The company left unsecured debts of about £1¼ million. Despite the fact that British Steel had given it a large sum of money, it obtained its steel from Japan. It took a lot of hard work to force the authorities to chase the company through the liquidators, although during the period of its insolvency it had breached the Companies Acts by gaining more money and operating as if it were a solvent company. Therefore, it was in contravention of the Theft Acts. That is one example where men have moved into jobs expecting secure employment but within a short time were told that they were not wanted and that their training and their time had been wasted. The factory is now empty and officialdom keeps quiet about the whole sorry and sordid story. A second example of the important and vexing problem concerns the company of Smart and Brown in Hartlepool. It is a part of the overall holding company of Thorn Domestic Appliances, a large company, known worldwide, with some of the finest expertise in marketing and in making trading judgments. It has a large factory in Ferryhill, but because Ferryhill is in Durham I will jump quickly away from it. It is significant that the Hartlepool Smart and Brown company was set up in Hartlepool with the BSC's intervention to help to give new work because of the closure of the steel making plant. Smart and Brown took part in promoting a £3½ million development in Hartlepool. Government grants and loans were given to the company, which made small refrigerators, but within less than 36 months, it decided to close. I questioned the matter, and the company brought out many statistics to show the trade unions that imported refrigerators from Eastern European countries such as Yugoslavia, were highly subsidised and therefore more cheaply produced. The unions were more or less convinced about the veracity of those excuses. However, I took good care to examine, through Customs and Excise, the imports of those refrigerators. I found considerable differences between what was being said to the trade unions by Smart and Brown and the truth about the imports of the refrigerators. I had pertinent discussions with the management on the matter, but I discovered that the decision had been made. Within one week, severance pay was being discussed because the company found it cheaper to buy the men off, get them out and close. The factory is still empty today. Finally, I wish to deal with a matter that involves criticism of British Shipbuilders. In my constituency, there was a company known as Richardson Westgarth that employed 3,000 people. It changed its ownership, and is now known as Clarke Hawthorn. It became part of British Shipbuilders when that company was created. The 3,000 people who had worked for Richardson Westgarth had a remarkable record for engineering and power production and, for a time, for the provision of special equipment for nuclear power stations. However, during the past three years, the company has been struggling, with a work force of 300 or 400 people. I assisted the company to achieve the best possible industrial relations when, some years ago, there was a serious problem. Redundancies were inevitable and I sought to persuade the company to adopt an approach to the question that did not cause a ripple of a problem. As a result, the company had well-determined industrial relations of the highest order. Two years ago, British Shipbuilders decided that Clarke Hawthorn should close. That is rather strange, as Clarke Hawthorn did not produce anything related to ships. It was a general engineering firm that was taken over, though it did not want to be part of British Shipbuilders. In the last year, the company has had on its order books over £1½ million worth of orders. I had correspondence with the management and unions while the predetermined closure was carried out. For the first time, industrial relations were unhappily soured, which is different from the experience I had had and encouraged. I am sad to have to tell the House that we found that orders for the firm were being diverted and ships were being sent to another port. When contracts were put out, Clarke Hawthorn was not seeking them. I challenged this. British Shipbuilders informed me that it had not authorised Clarke Hawthorn to refrain from going for orders and gave me the impression that Clarke Hawthorn was free to look for orders. However, when I wrote again, at a time when the unions were meeting the management to find ways of averting the closure, I discovered that what British Shipbuilders had said to me was completely different from what it had said to the unions. A few days ago, men with 40 years' experience received their awards for their long service—and their cards. That very large and reputable firm, which once employed 3,000 people, is now closed. I consider that British Shipbuilders and the other companies that I have mentioned did not play the game with Hartlepool. I say to the Government and to my own Front Bench that it is time for public bodies such as British Shipbuilders to be accountable for the decisions they make. They should not override Parliament or the Government.rose——
Order. I remind the House that the motion before us is
I hope that hon. Members understand that this is not the occasion for a general speech. They must relate their speeches to the motion.That this House at its rising on Wednesday do adjourn till Monday 18th January.
6.30 pm
I shall try to comply with your admonition, Mr. Speaker, and try to be brief.
The hon. Member for Hartlepool (Mr. Leadbitter) talked about British Shipbuilders. It is a nationalised corporation, not wicked capitalism at work. In the last 12 months its productivity has been well up, industrial disputes have almost disappeared and its financial performance has been transformed. Like the rest of the economy, it has to go through a barrier of pain before emerging to convalescence and ultimately to health. For years we have tried to put our problems out of sight under the carpet. Until we face them, the nation will never be economically healthy. I should like to ask my right hon. Friend two questions, and I hope that he will be able to answer them before we happily adjourn for the Christmas Recess. Through the Department of Industry, there is, quite properly, a system of assisting industry with starter factories, enabling people to start small businesses and providing them with factory accommodation. I believe that the system is far too inflexible, and there are two features missing which I should like to see the Government introduce immediately. First, I should like to see such assistance made available in existing factories rather than in premises which have yet to be built or which may be some distance from the area in which the employment is appropriate. Secondly, I should like the assistance to be made available to industrialists in the form of help with leasing costs, so that small and medium companies which want to start afresh or to expand can use as much of their resources as possible to concentrate on the manufacturing process which they are starting, rather than having to spend more than they might wish to spend on the cost of the property itself. I have in mind particularly a factory such as the Shand Kydd factory at Christchurch, which has been lying empty for more than a year. It is near a large housing estate, and there are companies which would willingly take over part or all of the factory, either by acquisition, if Government assistance were available, or by leasing. It does not make sense to concentrate all our resources on building new factories some way from where the employment is required, when there are often adequate premises already available. There is a need for a more positive approach by the Government to British Rail's electrification programme. In the last few days, many journalists have had great fun with the advanced passenger train. It has been a matter of great sadness to me that the APT has not come up to expectations. It is worth reminding ourselves how miserably mean we are with finance for advanced technological projects. We have only to compare the money that we have put—or, rather, not put—into the APT with the money that. the French Government make available to French railways for investment not only in new technology but in new and faster trains and new railways lines to realise how starved we keep some of our advanced industries and technology of the essential finance to enable us to stay in the forefront of technology, particularly railway technology. I know that we cannot buy our way out of the recession, but the Government could and should be investing in the future—particularly in a modern, electrified railway system. There is no doubt that the Government are right and justified in putting money into British Leyland and the British Steel Corporation. I have no argument with that. If we stop funding BL, it will stop making cars and others will fill the market share. If we stop funding the British Steel Corporation, others can and will supply us with steel. But if we do not invest in our own railway system, no one else will do it for us. A modern railway system is essential for our industry. A quick programme of electrification announced by the Government would be an enormous boon to many of our heavy electrical engineering industries. We constantly hear the cry for increased productivity, but some of the productivity that the Government demand will come only if the initial investment is made. As far as I know, no one has asked how much profit the M6 motorway has made this year. We have a very strange attitude towards investment in our railway system. I urge my right hon. Friend to do his best to ensure that the Cabinet makes the sort of decisions that were made in the days when the present Lord Chancellor was looking after the problems of the North-East. In those days, the Conservative Government made significant investment decisions concerning the nation's infrastructure. They have stood in good stead the areas concerned and provided them with essential communications. In spite of all the economic problems and difficulties, it cannot be said that the House is a seething melting pot of anger at the Government for their policies. Unemployment is dropping, as opposed to the position in many of our competitor countries, our productivity is rising, and industry's costs are being contained. Perhaps the Government are not doing half as badly as many of their critics suggest.6.37 pm
There are at least two matters that the House ought to debate extensively before the Christmas Recess, apart from considering an earlier date for our return than 18 January.
I congratulate all those who have been providing public services during the terrible weather that we have had, particularly in Yorkshire and the North. There have been delays, but the buses and trains have been kept running. The outstanding efforts of the people who run the services are in stark contrast to the often bitter criticisms which are made from the Conservative Benches about the need for fewer men and women to be employed in the public services and the need for greater productivity. This is a time of the year when the employees' services to the community are outstanding, and they deserve our praise. I endorse what the hon. Member for Christchurch and Lymington (Mr. Adley) said about the need for more investment in British Rail. At a time when the nation is facing a bitter winter and a bitter dole queue of almost 3 million people—I understand that the figure to be given tomorrow may show a small decline, but it is still unacceptably high—the Government ought to be prepared to make investment in British Rail a priority. Such investment would create jobs and make our railways a showpiece for the world. British Rail has enormous export potential, its technology being in a leading position in the world. It is unfortunate that, of sheer necessity, many provincial suburban services are provided by ageing diesel multiple units. I know that British Rail has a number of prototypes on trial, but it is engaged in a juggling match with the Government. It puts forward electrification proposals, the Government say that they want an overall pattern, then that they want individual proposals for each service that is to be electrified and a profit assessment for each proposal. That gives the impression of procrastination and delay. As a result, British Rail seems to be concentrating on the electrification proposals, but there is an urgent need for the replacement of the diesel multiple units. As I have urged before, such replacement will ensure that British Rail produces a more efficient service and, therefore, attracts more passengers. Because of the diminution in manpower, British Rail is often at its wits' end to maintain a service using these ageing fleets of diesel multiple units. When a service deteriorates—I refer not to special weather conditions but to the ordinary service—passenger potential is diminished. That is important in suburban services in provincial areas, such as Keighley in the Leeds-Bradford conurbation. An intensively used railway should have the benefit of modern rolling stock. I wish now to comment on a subject mentioned by my right hon. Friend the Member for Fife, Central (Mr. Hamilton). There is a large National Health Service general hospital in my constituency. It is of comparatively recent construction. It is a superb example of the NHS at work. It is deeply appreciated by the people who use its services. However, there is bitter feeling among the nurses at Airedale general hospital that the Government's 4 per cent. pay limit is imposing a cut in their income. The NHS is a labour-intensive service. The Labour Opposition wish to see the NHS succeed. That is not the wish of the Government. They are giving encouragement to private services. They are considering insurance schemes to erode the basis of the NHS. Therefore, they are not too concerned that those who work in the NHS face a diminution in their income. People who give dedicated service should have it reflected in their pay. I assure the Leader of the House that in correspondence sent to me the nursing staff have said that they are feeling extremely bitter about the Government's attitude to their pay claim, especially against the background of a promise to provide a better arrangement for the future. That promise has not been kept. That is a very important matter. It will loom larger in future as the bitterness increases in the negotiations that are taking place.Order. I have been looking through the list. I have allowed the hon. Gentleman to go on for a bit, but I see that another hon. Member wishes to raise the issue of nurses' pay. The hon. Gentleman has taken part in the ballot and, in my mind, it is unfair to jump the queue.
You will appreciate, Mr. Speaker, that I, too, have taken part in the ballot, and you will see from Nos. 20 and 21 that my hon. Friend the Member for Aberdare (Mr. Evans) and I have the subject of nuclear weapons down. You will also appreciate that the opportunity is not normally accorded to hon. Members to speak twice on Second Reading of the Consolidated Fund Bill. I appreciate that my subject is late on, but, knowing the House as I do, it is imprudent to withdraw a subject, because a debate, even though it is late on, can sometimes come up with alarming and gratifying rapidity.
I am grateful to the hon. Gentleman. I have to try to guard the position of those who might be called at 3 or 4 o'clock in the morning, and it could be 2 or 3 o'clock rather than 3 or 4 o'clock if the debate on the Adjournment motion were shorter.
You will be gratified to know, Mr. Speaker, that I am coming to a conclusion.
I have a great constituency interest in this matter. There is a large up-to-date hospital in my constituency, which I shall visit on Boxing Day. I shall receive many expressions of appreciation of the services provided by the nurses and the rest of the staff. The Government should recognise their obligations to nursing staff by entering into decent negotiations and casting aside the miserable 4 per cent., which means a real cut in income, because nurses provide an extremely valuable and important service.6.45 pm
I link myself with the praise of those who have kept the public services ticking in the recent terrible weather—for example, those who man buses and trains, those who have repaired the electrical wires that came down, those who have tried to plug the leaking sewers, and those who have kept the Houses of Parliament ticking over today. I also extend the praise to those who have struggled to their offices and factories to earn the country's living and who are contributing greatly to the productivity increases which my hon. Friend the Member for Christchurch and Lymington (Mr. Adley) mentioned.
I take issue with the hon. Member for Keighley (Mr. Cryer), who referred to the attitude of the Conservative Benches towards the National Health Service. The Government and Conservative Members have always wished the National Health Service well. That has been marked by the dramatic increases in recruitment of doctors and nurses to the Health Service and the dramatic shortening of waiting lists which that has achieved.. I wish to raise a subject of constitutional importance. Perhaps my right hon. Friend the Leader of the House will provide time to debate it—if not before the recess, immediately afterwards. It ranks equal to or even greater than the subject for which you, Mr. Speaker, have granted a special debate tomorrow. It is the granting of the right to vote to Britons living abroad. The reform of the electoral law, particularly votes for Britons abroad, has been on the parliamentary and, I understand, the Cabinet agenda for quite a long time, but action has not come about. Yet the Government seem to be keen to give this right. I refer the House to an answer that I received from a previous Minister of State, Home Office. He said:that is, a change to allow those living abroad to vote in United Kingdom elections—"the Government accept the desirability of such a change"—
The Minister spoke rather more positively when addressing the Conservative Party Conference later that year. He said:"for elections to the European Parliament. A large number of administrative details remain to be considered, however, and I cannot say when the necessary legislation will be introduced."—[Official Report, 25 July 1979; Vol. 971, c. 241.]
That was in 1979. More recently, when I asked that Minister's successor as Minister of State, Home Office, whether the Government had come to any conclusions about this matter, he replied that the Home Secretary would"we are looking at ways to meet the demands of those of our citizens who are living and working abroad for a chance to vote at our elections. I am particularly sympathetic to those working in the EEC to be able to participate in the election of representatives to the European Assembly in Strasbourg. Extending the franchise in this way raises important issues of principle, but we shall not allow the difficulties to become an excuse for inactivity."
The Minister of State had also said at the Conservative Party conference:"make a statement in due course about this and the other matters which he has been considering in his review of electoral law and procedures."—[Official Report, 26 November 1981; Vol. 13, c. 440.]
Therefore, it is pleasing to find that there is a welcome keenness on the part of the Government, but I am concerned about the lack of progress. The people concerned are keen to have this right. There are between 75,000 and 110,000 British citizens over 18 who are working or living on the Continent of Europe alone, though that number might be decreased somewhat if a plan were to be put into operation because there would have to be a cut-off for those who had been living abroad for more than a certain period—say, 10 years. This matter was highlighted by support from the European Democratic Group when it decided in January this year to support the principle that all United Kingdom citizens should have the right to vote in the European elections without regard to the member State in which they are resident. That group is producing a paper detailing how the difficulties can be overcome. I believe that that will, be available very early in 1982. This was further emphasised by the Legal Affairs Committee of the European Parliament which recently produced an opinion on"There is a good case to be made for such people having the vote. It is one of the issues that our review of electoral law is considering and which we are bringing to completion soon."
The Leader of the House knows how keenly I support the adoption of a proportional system for this country and for Europe, but I shall resist the temptation to go down that route today. The opinion stipulated:"the elements of a uniform European electoral system".
There is therefore keenness on the part of the Government as well as on the part of those who at present do not have the right to vote in this country. I raise four aspects of the matter in order to allay them. First, I can see no difficulty in any person who qualifies being allowed to vote in all British elections—local, national and European. That is in line with practice in Italy, France and most parts of Belgium and Luxembourg. Secondly, it is easy to arrange validation through a British consulate. Wiser minds than mine have ascertained that it is reasonable to expect that capability from British consulates without any extra staff being required. Thirdly, where should votes actually be cast? Clearly, the most appropriate place would be the persons's United Kingdom residence if he has one. That is how the system is applied in Belgium and Luxembourg. If there is no present United Kingdom residence, it could be the last residence, as applies in the Netherlands, France, Italy and Germany, or the residence of the next of kin, parent, grandparent, child or other dependant, as applies in France. Lacking all of those, it could be the main centre of the person's interest or attention, such as his centre of business in the United Kingdom. Fourthly, there is the question of how to vote. I believe that it would be perfectly straightforward and would present no difficulty to apply the normal system of proxy voting, or if that were not possible in certain cases, the postal voting system. This embraces not only those Britons serving the Government abroad or working in the European Parliament, but business men living abroad, on whom so much of our economy depends, students studying abroad, people teaching abroad and pensioners who have decided to spend their final years in the Mediterranean sun or elsewhere abroad. All of those people are affected now and will be affected in the future by the legislation and actions of Parliament and the local councils in the areas to which they might return. Pensioners are, of course, directly affected by Government action with regard to their pensions. Those Britons living abroad deserve representation now, and the Government wish them to have it now. May we therefore have action, if not before Christmas, as soon afterwards as the Leader of the House can arrange?"The citizens of the Member States who are resident in another Member State shall exercise their right to vote without restriction. The Member States shall adopt all the measures necessary to ensure that they are able to exercise the right to vote at diplomatic missions or at other places that afford equivalent guarantees. In addition, the States in which the electors are resident shall provide all the assistance necessary to ensure the freedom and secrecy of voting and to prevent negative consequences of any kind for the electors and the members of the electoral offices".
6.53 pm
I am always impressed by the manner in which the Leader of the House deals with the debates on the Adjournment recess motion. Having observed him on a number of occasions, I admire the bland and quiet determination with which he ensures that Parliament proceeds into recess while at the same time skilfully blending with that a solicitous concern for those who argue that it should not.
I understand that the Leader of the House and the Government are eager to go into recess. Given the programme for reducing unemployment, inflation and taxation with which the Government started the Session, it is plain that they have not achieved a great deal. One hopes that after a parliamentary recess they will come back with different policies. I listened equally attentively to the speeches of those hon. Members who argued that perhaps we ought not to go into a recess and that the public interest would be better served if we spent our time debating the multiplicity of issues that have been raised. I listened to the characteristic speech of the hon. Member from Halesowen and Stourbridge (Mr. Stokes). I say "characteristic" because I have heard him on previous occasions and one of his great attributes is consistency. He has raised this issue on a number of occasions. Today, he catalogued the process of social change through which Britain had gone in recent years and said that we should turn back to our old social ways. I do not know what he has in mind, but I hope that he does not mean what he says. It is, perhaps, typical of us all that we remember that which is best in the past and try to forget that which was not so good. I was born in 1926 into a large family in the Ancoats district of Manchester. We lived in squalid housing, among people who lived and worked in squalid industrial circumstances, so I remember the old social ways to which the hon. Gentleman referred. That is why I am a Labour Member and not a Conservative. Many of my constituents do not wish to go back to the old social ways. I hope that the hon. Member will think again about some of the phrases that he used and will better define what he meant by them. I was impressed by the speech of my hon. Friend the Member for Edmonton (Mr. Graham). He was right to identify the problem of inadequate checking of safety installations in bed-sit room accommodation, particularly in London, and to focus public attention on it. He was also right to highlight again the bed-sit tragedy to which The Sunday Times referred under the heading "Killer Fire". It is regrettable that essential safety regulations are not obligatory and that checks are not carried out with the frequency that he and I regard as necessary. I share his hope that we may have acceptable British standards for safety in public buildings such as stores, hotels and bed-sitter accommodation. My hon. Friend was equally right to refer to the major fire at the Woolworth store in Manchester, which involved inflammable foam material. I hope that the Leader of the House will draw the attention of both the Secretary of State for the Environment and the Minister for Consumer Affairs to this problem. The hon. Member for Welwyn and Hatfield (Mr. Murphy) rightly referred to the problem of vandalism. Vandalism is a major problem. Only the other week I attended a football match in Manchester to watch Manchester City football club. Watching the police and mounted police escorting visiting supporters to the ground was one of the most depressing sights I have seen in my life. One had the impression that they were under arrest. One would not have dreamt for a moment that they were coming to enjoy themselves by watching a game of professional football. Vandalism is a problem, but I wish that the hon. Gentleman had said a little more about unemployment among young people, because if that continues at the present rate—with levels of up to 40 per cent.—disillusionment, disenchantment and frustration will add to the difficulties. The right hon. Member for Down, South (Mr. Powell) and the hon. Member for Orpington (Mr. Stanbrook) were right to focus attention on the problems of Northern Ireland. It is understandable that they should seek to turn our minds to the terrible traumas and tragedies that affront that troubled land. My only comment is that I hope that the terrorists, from whatever quarter, give some relief to that sorely tried land at Christmas when we celebrate the birth of Christ. The hon. Member for Bodmin (Mr. Hicks) spoke about the allocation of funds from the European development fund to Cornwall and Devon. I hope that the Leader of the House will ensure that the hon. Gentleman's comments are directed to the attention of the appropriate Minister. The hon. Member and my hon. Friend the Member for Kingston upon Hull, East (Mr. Prescott) were right to express the warm regard and deep appreciation—which Mr. Speaker expressed earlier and which we all share—for the members of the Mousehole lifeboat service who lost their lives in yesterday's terrible tragedy. Like my hon. Friend, I believe that the safety of those at sea, which is the paramount concern of lifeboatmen, should also be the paramount concern of the House. He said that lifeboatmen receive only £3·50 a day for the services that they give, not only to seamen, but to mankind in general. My hon. Friend was right when he said that lifeboat stations are entitled to the best facilities. My hon. Friend also referred to the company that owns the ship that was in distress and rightly drew attention to the horrible problem of ships operating under flags of convenience, with owners concerned more about commercial factors than safety standards. I endorse his demand for an inquiry into the loss of the vessel and the loss of lives. The hon. and learned Member for Beaconsfield (Sir R. Bell) demanded another debate on immigration. He argued, once again, on the basis of the birth statistics, but statistics can be interpreted in a variety of ways and there is another significant side to the picture. I would welcome a debate on immigration. My hon. Friend the Member for Fife, Central (Mr. Hamilton) was right to refer to the dedicated work of the new Commonwealth citizens who contribute so much to our hospitals. He was also right to mention the major problem of nurses' pay. My hon. Friend contrasted the Prime Minister's undertaking that nurses would receive no less generous treatment than the police and the Armed Forces with the reality of the recent interview that nurses' representatives had with the Prime Minister. I say to the Leader of the House and the Prime Minister that the nation expects nurses to be treated as generously as practicable. A Government who never weary of expressing their belief in free collective bargaining should not single out nurses for the imposition of a pay policy. I have listened with interest to the hon. Member for Bournemouth, East (Mr. Atkinson) on a number of occasions, but I felt that his speech today was probably the most insensitive of the debate. He demanded a review of the Housing (Homeless Persons) Act 1977. Imagine that! The hon. Gentleman demands a review of the Act at a time when we are celebrating the birth of a child whose parents were turned away from the inn at Bethlehem. It is a good job that they did not present themselves at Bournemouth.What appalling taste.
The hon. Member for Bournemouth, East was concerned about those with no fixed abode. We are right to be concerned about them and I do not budge from my judgment that the hon. Gentleman made probably the most insensitive contribution to the debate.
My hon. Friend the Member for Brent, South (Mr. Pavitt) made a remarkable declaration in his proud and moving defence of the multi-racial social basis of his constituency. He also referred to factory closures in his area and the changes that have taken place at the Park Royal estate, which is confronted with the prospect of becoming an industrial desert. I had considerable sympathy with his argument that such areas should be treated as inner city areas for the purposes of industrial support. My hon. Friend the Member for Hartlepool (Mr. Leadbitter) spoke about the changes that have taken place in industry in his constituency. His comments about what is happening to industry in the regions will have provoked a reaction from most hon. Members. He referred to what I call the "branch office" mentality of international and multinational companies. When confronted with economic difficulties they always close the factory in the regions—the North, the North-East, Scotland or Wales—while retaining the headquarters and factories in the South-East or in another country. I understand the frustration that that provokes in my hon. Friend the Member for Hartlepool. I endorse the congratulations of my hon. Friend the Member for Keighley (Mr. Cryer) to all those in the public and private services who have kept the country going during the recent inclement weather.May I correct the right hon. Gentleman? The hon. Member for Keighley (Mr. Cryer) expressed appreciation of the public services, a sentiment that I share, but I extended it to the private services.
I apologise to the hon. Gentleman. I was telescoping my remarks so that I could conclude quickly. He is right. My hon. Friend the Member for Keighley referred to the public services and the hon. Gentleman intervened to mention the private services. Whether the contribution was made by the public or the private sector, we owe a great debt of gratitude to those who have kept the country going during the recent inclement weather.
7.10 pm
I should like to start by referring to the tragedy at sea off the Cornish coast, about which my hon. Friend the Member for Bodmin (Mr. Hicks) spoke movingly and with strong sympathy, as did the hon, Member for Kingston upon Hull, East (Mr. Prescott). The hon. Member for Kingston upon Hull, East spoke not only with great feeling but with professional knowledge. Mr. Speaker himself expressed the views of the House with eloquence earlier in our proceedings.
It was with the deepest regret that all hon. Members heard of the loss of the Penlee lifeboat and her crew. The House pays its tribute to all the rescue services which did their utmost to save the lives of those aboard the "Union Star" but, above all, to the gallant men manning the Penlee lifeboat who risked everything in trying to achieve their objective and who have given their lives in so doing. This country can take the greatest pride in the bravery of such men. All hon. Members will wish to offer the deepest sympathy to the families of those who lost their lives. The House will be glad to know and interested to learn that the Royal National Lifeboat Institution has already begun a full investigation into the loss of the lifeboat. The Department of Trade has decided that it should undertake an urgent preliminary inquiry into this tragic loss. The Irish Government have informed us of their intention to hold a preliminary inquiry into the loss of the "Union Star" which is registered in the Republic of Ireland. This immediate approach to finding out what happened will be some relief to the House. I am sure that the remarks of the hon. Member for Kingston upon Hull, East will be taken fully into consideration.I wish to associate myself and, I am sure, all hon. Members, particularly those who represent coastal constituencies, with the thoughts of my right hon. Friend on the matter. I ask him to impress strongly on his right hon. Friends the point made so movingly by the hon. Member for Kingston upon Hull, East (Mr. Prescott) about the need for some countermanding authority, perhaps with the coastguards, who can intervene when it is clear that human life is at risk. This point is made strongly by the Cornish Fish Producers Association and others in that part of the world who cannot understand why this power does not already exist.
I shall pass on the views of my hon. Friend which I am sure will be taken into account in the investigations.
My hon. Friend the Member for Bodmin referred to the proposals of the European Commission for the European regional development fund. My hon. Friend spoke strongly about the potential effect of the proposals on the South-West. He referred to the problems of rural deprivation and asked that the Government should defend robustly the South-West in the councils of Europe I should like to inform my hon. Friend that these are only proposals. They are not welcome. We shall be discussing them and arguing about them with other members of the Community. We shall fight our corner in the forthcoming multilateral discussions. We shall be arguing not particularly for the South-west but from a United Kingdom point of view. Other regions are affected by the proposals. I assure my hon. Friend that we shall keep very much in mind the points that he has made and the factors that affect other regions deleteriously or could potentially so affect them. I come next to the request made by the right hon. Member for Down, South (Mr. Powell) on the important matter of security in Northern Ireland. Although I do not now have any responsibility in that connection, I have in two previous capacities had some responsibility and I take a great interest in these matters. As the right hon. Gentleman knows, the Army Spearhead battalion was sent to Northern Ireland in response to the recent increase in terrorist violence. There is no immediate plan for its withdrawal. The security position is always kept under close review. Troop levels can be further increased at short notice. There will be no relaxation. The pressure of the security forces will be maintained. The chief constable makes as many men as possible available for full operational duties and anti-terrorist operations are kept at a high level. There can never be a guarantee of success, as the right hon. Gentleman will be the first to acknowledge, but the effort, always Herculean, will be maintained and sustained. The circumstances alter almost all the time, but they are effectively under continuous consideration. Co-operation between the RUC and the Armed Forces is of a high order. They do their very best in all the difficult circumstances that are well understood in the House. I assure the right hon. Gentleman that they will continue to do their best in the coming period of the recess. My hon. Friend the Member for Orpington (Mr. Stanbrook) raised a special and important aspect of security, the cross-border problem, and the lack of action, as he alleged, on the part of the Republic. In fact, he criticised our apparent inactivity in this matter. I assure my hon. Friend that the Government are acutely aware of the importance of the border and the points that he made. We have had many discussions with the Government of the Republic. There has been a significant improvement in cooperation across the border. It is much better than it was a few years ago. Obviously, not all the problems are solved. That is far from being the case. However, we shall be, and are being, as realistic as possible in achieving the best possible practical results. I turn now to the subject of the National Health Service, raised by the hon. Member for Fife, Central (Mr. Hamilton) and also mentioned by the hon. Member for Keighley (Mr. Cryer). The hon. Member for Fife, Central referred to alternative ways of financing the Health Service which are being considered and alleged that the Government had reached decisions to the extent that they had concluded that they wanted a fundamental change. That is not so. My right hon. Friend the then Secretary of State for Social Services announced in July the formation of a working party to look at and consider alternative ways of financing health care. That working party has not yet reported. Its work is not yet complete. I can, however, inform the hon. Gentleman that it is likely to be complete fairly soon. The report will be a preliminary exploration of a wide range of possibilities including comparisons of experience in other countries. My right hon. Friend the Secretary of State will be examining the report and will be making a statement. That will be sometime in the new year. I cannot be more precise. The hon. Gentleman will hear in due course what conclusions have been reached by the Government on that aspect.When advising the Secretary of State for Social Services about matters raised in this debate, will the right hon. Gentleman ask the Secretary of State to take into consideration the Porritt report that had exactly the same remit and sat for three years on this question?
I feel sure that this point is in my right hon. Friend's mind. I shall certainly convey it to him.
The hon. Member for Fife, Central spoke about nurses' pay. I assure him that the Government are committed to finding a more satisfactory long-term arrangement. My right hon. Friend the Secretary of State met representatives of the staff side of the nurses and midwives' Whitley Council on 10 December. My right hon. Friend the Prime Minister met them on 28 November. On both occasions there was a constructive discussion about procedures and a timetable for taking matters further forward. It is intended that there should be a further meeting as early as possible in 1982 with representatives of both sides of the Whitley Council at which there will be discussion of longer term arrangements that are likely to be acceptable to all concerned. So positive work is going on at present. In the last election, the Conservative Party singled out the pay of the police and the Armed Forces, and to that extent they are special categories. However, as the right hon. Member for Manchester, Openshaw said, we want to make an arrangement with the nurses that is fair, reasonable to them, and as generous as possible. In reply to the hon. Gentleman's other point about the Comptroller and Auditor General, I said last Thursday—as, I think, did my right hon. Friend the Prime Minister—that the Chancellor of the Exchequer has the matter under review, and I am in consultation with him. We hope to take the matter further in the new year, because we are both sensitive to the strong views that were expressed in the recent debate on the report of the Public Accounts Committee. Two speeches concerned the economy. The hon. Member for Brent, South (Mr. Pavitt) spoke about redundancies and closures. What he said was enlarged somewhat by the hon. Member for Hartlepool (Mr. Leadbitter), who spoke about regional problems in the North-East and British Shipbuilders. The effects of the recession and the experience of unemployment are, without doubt, some of our greatest anxieties and top priorities. This is not the appropriate moment to discuss and analyse the causes or to discuss them at length. We are having a number of economic and other debates at present. This Government, contrary to what we had originally hoped, have made an enormous investment in the public sector. Enormous resources have been allocated to it. The hon. Member for Brent, South spoke about inner cities. Although I cannot speak about his constituency in particular, I am sure that he knows that we pay great attention to the problems that exist in inner cities. We have a programme for encouraging small businesses which compares favourably with those in any other country. We have the youth opportunities programme, and we have the recently announced training schemes. It is a comprehensive programme which is costing £4 billion over about three years. Those are some of the positive actions that we have taken. However, we are constantly considering other possibilities. My hon. Friend the Member for Christchurch and Lymington (Mr. Adley) wanted us to extend our schemes for encouraging new businesses. My right hon. and learned Friend the Chancellor and the Government are always looking for opportunities to do that. My hon. Friend went on to urge a scheme of electrification for British Rail. The Government and I appreciate the attractions of that scheme, but it has to by tested in a cold and realistic way. It is under active consideration to see whether it is cost effective. That same test should apply to the request of the hon. Member for Keighley, who wanted more investment in British Rail. Of course, a good case can be made for that, but it must be cost effective, and it must be shown to be the best use of the resources that are available for investment when compared with other possible uses.I accept everything that the right hon. Gentleman says. but the purport of my complaint is to urge the Government to insist on more monitoring and scrutiny of the investments, because there is a long history of investment in industrial development, and after a short time those developments have left the region.
I am sure that the hon. Gentleman is right. There is no doubt that bad investments have been made. They are not tested realistically beforehand, they do not show the appropriate return and, to that extent, they are wasted. That is a mistake in any circumstances, and certainly in today's circumstances. It is a mistake that we must not make. That is why any possible schemes for investment must be carefully considered.
My hon. Friend the Member for Welwyn and Hatfield (Mr. Murphy) spoke about vandalism. He demonstrated that more than a half of it is done by young people. He praised the police. He mentioned the six-point plan of my right hon. Friend the Home Secretary. This Government have given the police much support—both moral support and support in terms of pay. There are more police today than there were two or three years ago. That is a great help, but it does not solve the problem—nor, by itself, can an even greater enlargement of the police force do so, or even come near to doing so. I question my hon. Friend's request for further investigation. In my view, we have enough facts and figures already. Every individual, family, business and organisation in our society is involved in the struggle against vandalism and crime. We cannot pass the problem to someone else. I am concerned by the general mood which seems to imply that, in a curious way, one can will, legislate or decide something that will cure it. That will not happen. It has to be cured by people as individuals. Our responsibility is to give them all the support that we can by strengthening the police and by every other means that we have. The Government are determined to do all that they can in that connection. My hon. and learned Friend the Member for Beaconsfield (Sir R. Bell) raised the important issue of immigration. He put a fairly detailed argument concerning the population growth of different communities in our cities. I am in some agreement with what the right hon. Member for Openshaw said on this subject. The fact is that we live in a multi-racial society. It must be the responsibility of each of us to make this complex pattern of communities work harmoniously and justly. My right hon. Friend the Home Secretary has expressed the Government's determination to make progress to that end, and the House will welcome that commitment. My hon. and learned Friend pressed for a debate on the subject. I cannot say other than that I should be happy to arrange such a debate. However, I must not mislead him. I do not see an opportunity in the near future. Hon. Members can find other opportunities to do so. I do not say that we shall not have such a debate but, in all fairness, I must say that I cannot see an opportunity in the near future. I say so in the light of the perfectly true point that he made—that we have not had such a debate for a long time. I shall keep his request in mind.So the blank will extend from the remote past to the remote future.
I have no doubt that the matter will arise in the future, as these matters always do. I note what my hon. and learned Friend asked, and I shall keep it in mind.
My hon. Friend the Member for Bournemouth, East (Mr. Atkinson) raised the subject of housing for homeless persons. Here, too, I appreciate what was said by the right hon. Member for Openshaw. The delay in the review has been rather lengthy. In fact, I do not think that the matter has been raised with me before in my capacity as Leader of the House. I have made inquiries since my hon Friend spoke, and I have discovered that my right hon. Friend the Secretary of State for the Environment is quite well advanced with this eagerly awaited review. He hopes to publish it fairly early in the new year, together with the Government's conclusions. After a long wait, my hon. Friend may see results in the not too distant future, and I hope that he will be pleased. The hon. Member for Edmonton (Mr. Graham) spoke about safety regulations and emergency escape routes. I doubt whether I am competent to make any profound comments on the matter. He asked me to give him a sympathetic response. That I am entirely prepared to do, and I shall draw his remarks to the attention of my right hon. Friends the Secretary of State for the Environment, the Secretary of State for Employment, and of the Minister for Consumer Affairs. The matter of voting rights for people living abroad was raised by my hon. Friend the Member for Lewes (Mr. Rathbone). The matter is still under consideration, together with other aspects of possible changes in the electoral law. As my hon. Friend knows, it is always more difficult to achieve these changes than may appear at first sight. However, the matter is still under review. I cannot give him a promise, or anything remotely like a promise, that there will be legislation on the matter in this Parliament. I do not say that there will not be legislation, but it is not very likely. The matter is still under consideration, and that is as far as I can go this evening. Our debate opened with a characteristic and much enjoyed speech by my hon. Friend the Member for Halesowen and Stourbridge (Mr. Stokes), who told me that he would not be able to be in his place after 7 o'clock. He gave an account of the material improvement in their lot being experienced by the British people at the same time as they were experiencing what he described as moral deterioration. He placed much emphasis on homes and schools and especially on religious education. I agree with him in all respects. He acknowledged that the Government could not cure moral deficiencies and that there was a role for everyone here. I thought that it was a very characteristic speech, wholly appropriate to Christmas week, and perhaps a very fitting theme when we might decide to conclude on Wednesday this part of this Session of this Parliament. On that note, I invite the House to pass this motion.
Question put and agreed to.
Resolved,
That this House at its rising on Wednesday do adjourn till Monday 18 January.
Business Of The House
Ordered,
That, notwithstanding the practice of the House relating to the interval between the various stages of Bills of aids and supplies, more than one stage of the Consolidated Fund Bill may be proceeded with at this day's sitting.—[Mr. Pym.]
Orders Of The Day
Consolidated Fund Bill
Order for Second Reading read.
Motion made, and Question proposed, That the Bill be now read a Second time.
Her Majesty's Dockyard, Devonport
7.31 pm
I wish to draw the attention of the House to a matter which is not only of great importance to the city of Plymouth but which has far wider implications. I refer to the greater use of the craft training centre at Devonport dockyard.
Perhaps I might be permitted briefly to sketch in the background. The craft training centre exists to train youngsters for varied skills required by the dockyard, and each year a decision has to be made by the powers-that-be about the numbers required. These, of course, are related to the work requirements of the dockyard. Over the last year or two, fewer have been needed. As a result, the centre is not being used fully. However, there is no lack of demand on the part of young people, and 169 was the figure settled for the current year for the apprentice intake required. But I understand that about 1,100 or so applied and took the entrance examination and that about 600 passed. This means that an excellent resource is not being used fully. There is a good modern building. There is excellent equipment. There are highly skilled instructors in a number of these crafts. It is not easy to build up such a centre. In the past, many private employers have been glad to take on former dockyard employees who had been through the training centre. Now, with financial restraints in operation, the Ministry of Defence does not feel that it can be overgenerous in training young people beyond the strict requirements of the dockyard. That is understood, but it is a matter of grave concern in the city to Members of Parliament, the city council and others concerned with the young that here we have a centre which is under-used. I speak as a former teacher who was always concerned to ensure that once pupils left school they embarked on suitable further training. It is one of the great weaknesses of the country which is being tardily recognised that we have not given young people the further training that they need. This fact came out clearly in the recent White Paper on the new training initiative. We compare very unfavourably with such industrial countries as Germany in the training that we give to 16 to 18-year-olds. Hence it was natural that there should be pressure to use the centre more fully, and this has involved a great deal of correspondence and no fewer than two deputations at intervals to Ministers at the Ministry of Defence. It was originally my suggestion that one way over the difficulty might be to seek to utilise the funds of the Manpower Services Commission to enable the centre to be used more fully. This seemed and still seems a sensible proposal. Unfortunately, so far it has had the thumbs down. A letter from the Minister of State for Defence Procurement to me dated 30 October shows the official line. My noble Friend wrote:It seems to me that we have become bogged down with this near fetish about apprenticeships, and I have for long felt that it would be possible to give other forms of training than the traditional apprenticeship in this centre. I have discussed at some length with one of the instructors at the training centre the possibility of using the centre for much shorter courses. My constituent, Mr. Waterfield, an instructor at the centre, aided by some of his colleagues has, at my request, prepared syllabuses for courses of either six months or 12 months, and they have taken no little trouble to get really good courses going on paper. They have provided me with syllabuses for courses in woodwork, metal work, electrical work, boilermaker's and welder's work, coppersmith's and plumber's work, painting and decorating. I have the various papers with which they have provided me. To take just one example, in the electrical course they have divided the time into six months and given what could be done in each of those months. Month one, for example, would deal with electrical terminology and safety precautions, alternating and direct current, various tools and equipment and their use in electrical work, cable sizes and their uses, termination of cables, basic circuits, cable jointing and insulation and circuit protection. Moreover, they have suggested a course that would be suitable for the present youth opportunities programme—a shorter course than the six or 12 months that I have outlined already—which would give a basic training in skills associated with general workshop practice and in machine shop skills and bench skills. They have even gone so far as to work out the number of people whom they could put through a course at various times. For example, they reckon that between 7 September this year and 13 November they could have put through 64 trainees, 32 in the machine shop skills and 32 in the bench skills. There is real practical knowledge available for using the centre in a way different from that of the four-year apprenticeship. I admit that I have been hammering away at this theme for some time with a conspicuous lack of success and my spirits have been flagging somewhat. I considered this my last chance to get the centre used more widely before skills were lost as instructors were laid off. However, my flagging spirits were revived by the announcement made by my right hon. Friend the Secretary of State for Employment on his ambitious new training initiative for young people. I wonder why it always takes a crisis to force us to do what we should have been doing anyway—ensuring much greater opportunities for young people. It would seem that only the unemployment crisis has brought about a recognition of that need. The objectives of the training initiative fit in perfectly with the plans that I have outlined. I shall draw the attention of my hon. Friend the Minister to two of the Government's points in their 10-point programme for action, outlined in the recently published White Paper. The first of those points refers to"The problem facing us is that there is at present a large amount of spare capacity for training apprentices available in the private sector and the funds available in the Department of Employment have to be used mainly to help employers in industry. Our proposals had to be based on the understanding that all the costs, or a high proportion, would be found from sources other than Defence Votes. One unbridgeable gap was our wish to have funding for four years of the apprenticeship and the the Manpower Services Commission's policy to fund the first year only."
Point (ix) of the 10-point plan refers to"a new £1 billion a year Youth Training Scheme, guaranteeing from September 1983 a full year's foundation training for all those leaving school at the minimum age without jobs."
The White Paper refers to"a £16 million fund for development schemes in particular localities or sectors."
Precisely. Plymouth has just such an enterprise that could be used. The White Paper rightly states:"interesting proposals for joint initiatives for new types of training scheme coming forward from employers, unions and others in particular localities or sectors."
I recognise that my hon. Friend will need time, in association with his colleagues at the Department of Employment, to consider my suggestions. Essentially, I am trying to sell him the advisability of diverting funds from the Manpower Services Commission to the Ministry of Defence in order to introduce non-apprenticeship courses. The instructors believe that they have a role to play that they could play well. I wholeheartedly back them in that belief. After all, it is good Conservative policy to build on the well-tried and tested. I hope that my hon. Friend will not simply pay lip service to that but will take urgent action to ensure that the centre is used and to provide a good local example of what can be done."Success or failure ultimately depends on what happens locally."
7.42 pm
I am most grateful to my hon. Friend the Member for Plymouth, Drake (Miss Fookes) for raising this important matter of training in Devonport dockyard. She did so with her usual clarity of thought and with carefully prepared words. I am sorry to hear that she is low in heart. I am afraid that I shall not totally satisfy her, but I shall do my best to explain my Department's attitude.
Within the Ministry of Defence we set great store by training, and the dockyard at Devonport is one of the largest trainers of apprentices in the United Kingdom. The work of the Royal dockyards in maintaining the ships of the Royal Navy involves the activities of a wide range of craft skills. About 20 different trades are employed in major overhauls of warships and submarines, and some of those trades are peculiar to dockyard work. The numbers required in the trades have been maintained largely by training apprentices in the skills that we need. It is generally acknowledged that dockyard apprentice training is of a very high standard. Because of the Department's determination to prticipate fully in the Government's commitment to reduce the numbers of civil servants, and other factors, it has been necessary to reduce the total craft apprentice entry at Devonport to 160 in 1981. The number required for the 1982 entry has not yet been decided as the full implications of the increased work load resulting from the Defence Review have yet to be assessed, but it is likely that an entry of about 230 will be required at Devonport. Extra apprentices were recruited in Devonport in 1978 and 1979. About 70 extra were entered and in their first year they filled the training centre to capacity Those extras were above the dockyard's needs but they are nevertheless dockyard apprentices. They count against Ministry of Defence numbers and they are financed from the defence budget. With an entry of 230 in 1982, the centre will not be used to capacity and it is therefore tempting to consider using the spare capacity for training "extra" apprentices or for other forms of training, as my hon. Friend suggested. There are, however, several factors which must be taken into account before we can take up such a proposal. The centre can by its nature only be used for basic skills training. It can be used for hand skills, such as sawing, filing, fitting, soldering and welding, and for machine skills, such as turning, shaping and boring. This falls short of a normal apprenticeship training by the three years that the apprentice is on the job. The instructional staff at the centre are, of course, subject to the same requirements in regard to reducing the number of civil servants as the rest of the Ministry of Defence. The number of instructors has already been reduced to those needed to instruct the 230 apprentices needed by the dockyard in 1982 and there are no spare instructors for extra trainees. One result of the Defence Review is that there will be a change of emphasis in the work load of Devonport dockyard towards nuclear submarines refitting. This requires a higher proportion of mechanical, electrical and pipework involvement. In such trades the skills are "transferable"—useful in other industries—and the capacity of the centre in those trades will be filled by the dockyards own needs in 1982 and beyond. The spare capacity will be in trades peculiar to dockyard work—for example, shipwright—where the skills are much less "transferable" and therefore not as appropriate to employment elsewhere. The capacity of the dockyard to provide extra training is partly limited by the capacity of the centre. As a consequence of the Defence Review, apprentices now in their second year at Chatham, Portsmouth and Gibraltar will have to be transferred to Devonport and Rosyth to complete their training, and that, in addition to the 1979 extras now in their third year at Devonport, will absorb what extra capacity there is on the production side. Together with my right hon. Friend the Secretary of State for Employment, I have received representations from Plymouth city council and others that the dockyard centre should be more fully utilised as a resource for training apprentices or for other forms of training for the city and its travel-to-work area. Such questions would involve the Manpower Services Commission and the engineering industry training board. I understand that the Commission takes the view that existing provision for apprentices is adequate to meet the wider foreseeable needs of the area, and that if more apprentice places are needed they can readily be obtained elsewhere. There are, for example, places available in the local engineering group training association training school, which could be brought into use at a cost of £3,000 per trainee for the first year. Almost every manufacturing firm in the area has spare training capacity which might be utilised at similar cost. The more specialised, and therefore possibly less suitable, facilities at the dockyard would entail higher costs on any basis. It would be premature to comment on using the dockyard facilities for training under the scheme announced in the recent White Paper by my right hon. Friend the Secretary of State for Employment. The new scheme is not to be fully operational until September 1983. I have no doubt that my hon. Friend's comments will be read by officials in that Department, and I am sure that her views will be take into account. I understand that the Manpower Services Commission has already had discussions with the dockyard management about using the centre's facilities for training youngsters as outlined in the White Paper, and was informed of the restrictions which I have outlined. We need to bear in mind that the layout, syllabus and instructional staff in the centre are geared towards the training of dockyard apprentices and, even if it were practicable in terms of numbers and finance, it is unlikely that the centre would be an appropriate place for non-craft training. I understand that there is already much spare capacity for non-craft training in the Plymouth area, and with this in mind we should perhaps remember that, the ATC is located in one building and there could be many problems in having a mix of conventional apprenticeship training of lads who have proved to be the best, after a series of tests, with the lesser-qualified teenagers who are on these short courses. One general point that must be clearly understood is that the Ministry of Defence is under severe financial and manpower restraints and any proposal to use spare capacity at the centre, if that proved practicable, could be considered only if the trainees, their instructors and the cost of trainees, instructors and training facilities were within neither defence numbers nor the defence budget. Hon. Members will wish to note that, notwithstanding the reduction this year, there are still nearly 1,000 apprentices under training at Devonport dockyard. As I said earlier, that is almost certainly the largest single group of apprentices in any establishment, public or private, in the United Kingdom. Devonport dockyard's ratio is about one apprentice to every four craftsmen, which is much higher than the average for the engineering and shipbuilding industry of about one to nine. My Department has at present more than 7,500 apprentices under training. That means that we are the largest trainer of apprentices in the United Kingdom. For MOD in general and Devonport in particular, I can assure the House that MOD will meet its full share of training needed, whether it be apprentice training or some other form. Perhaps its present problems stem from the fact that, in the past, it has done rather more than its fair share. I am afraid that those words will not wholly satisfy my hon. Friend. I am grateful to her for giving me an opportunity to air the subject and to explain the attitude of my Department. I am sure that she will agree that, given the considerations that I have explained, the Government do not face an easy choice. I am sure that my hon. Friend will be understanding.Science Policy Formulation And Administration
7.52 pm
I am grateful for the opportunity to discuss the implications of what I consider to be the most important Select Committee report that has been published for many years. Such reports address many different problems in our society, and judgment on their merit is a highly subjective matter. Nor can every hon. Member honestly claim to have read every report published. Last year alone the machinery of Select Committees in the House produced some 40,000 pages of reporting and evidence.
The report to which I am referring, however, is not of this place but of another place. It is the only Committee in either House that is capable of conducting a broad survey of science policy and its implementation. It affects, and will continue to affect even more profoundly, virtually every major Department of State. There are those who would abolish the other place in the interests of whatever virtues are supposed to be found in the unicameral legislature. This report on science and Government reveals that the other place has, with great competence and alacrity, stepped into the void that we created when we abolished the Select Committee on Science and Technology. The Committee, of great distinction, has uttered a warning to the nation as a whole that we should discuss in the House as a matter of urgency. I would do the report, its distinguished authors and eminent witnesses a considerable injustice if I were to attempt to summarise, in a few minutes, the considered arguments of 32 pages of text and 328 pages of memoranda and evidence. My purpose is much simpler. The tocsin is ringing out across the countryside of British science and technology, but most of us are too preoccupied with the trivia of daily legislation to hear. I want to amplify its sound by suggesting that the report should be compulsory reading for anyone who is concerned with the performance of our economy and the contribution of science, via technology, to the creation of wealth. In my humble opinion, the subject justifies a two-day debate rather than my modest contribution. I propose to substantiate my case by quoting selectively from the report and some of the evidence. I shall then attempt briefly to draw some conclusions and to suggest what might be done. The report addresses three main questions; first, does the application of science and technology meet the nation's needs; secondly, in view of the scale of Government involvement, is the machinery they apply to science and technology adequate, absolutely and relatively; thirdly, if not, what changes can and should be made? I begin with the question of application. The report concludes, somewhat generously in the light of the evidence:That is generous because it is a mid-point conclusion, averaging a spectrum of views from those expressing relative satisfaction to those expressing the gravest disquiet. Their Lordships argue that the scientific dimension in Government should be strengthened, but there was not much agreement—certainly among their witnesses—as to how that should be done. There never is. One does not have to read between the lines to find out what the nation, in the form of its most excellent witnesses, has said. I shall be deliberately selective and quote some statements that the House will find profoundly disturbing—first from witnesses and then from the report itself. I shall start with the Royal Society's memorandum, in which it states:"The present system … is, by chance or design, going quite a long way to meeting the prime objectives."
The Royal Society said that there has been"there are some serious obstacles to the flow of appropriate advice from the best scientific sources to the policy-making levels in government … most members of the administrative civil service have no training in and a modest understanding of science … Most scientists have little appreciation of public administration and the machinery of government."
The Royal Society later said in its memorandum that"in recent years a noticeable fall in the scientific status of government laboratories … the present arrangements for the interdepartmental coordination of scientific advice to Governments are much less satisfactory than those which were in operation in 1971."
Asked by Lord Swann whether the Government were downgrading the status of scientific advice in the governmental system, the president of the Royal Society, Sir Andrew Huxley, replied that the society had consulted a considerable number of Fellows before submitting its memorandum as well as a few others who held responsible posts in Government. He said that that was"the present rigid distinction in Government thinking between basic and applied science is inherently dangerous and particularly so if it leads to a view that advice can be similarly pigeon-holed."
Lord Zuckerman, who has probably had more experience in the area of scientific advice than most, having served on scientific advisory committees in almost every Government Department, said about the chief scientific advisers:"pretty well a unanimous opinion that we received and we expressed it without qualification".
I want to emphasise the next point. He said:"the majority of them achieved little because they were not privy to what were the problems of the Minister or the Government of the day … They were as it were, operating on their own."
From one who was involved, I turn to one who is involved—the present chairman of the Advisory Committee on Applied Research and Development, Dr. Spinks, who is also a Fellow of the Royal Society. He recently reported on biotechnology and Government purchasing and research. He argued that the Government's reply was "inadequate in content" and took"If a better way of misusing the time and the sophistication of distinguished scientists who served on those committees could be invented I would like to know what it is."
He said:"an unconscionable time in being produced."
So do I. I come now to the evidence of Sir Ronald Mason, chief scientist at the Ministry of Defence. When asked about the application of defence research—the largest single research and development budget in the country—in the civil sector, he replied:"The highest levels of the civil service are inadequately educated in science and technology, and grossly so in my view. I think the Government and Parliament in general contain insufficient science or technology graduates or even those who have any significant interest in either subject, and I feel this is a matter of growing national concern."
When he was asked about the Advisory Committee on Applied Research and Development, Sir Ronald argued that"I know of no coherent organisation that does, as it were, oversee the possibilities of technology transferred out of the defence sector into the civil sector."
I come now to industry. A memorandum from the Shell Group, a large and powerful industrial organisation, stated:"there has been considerable concern in the scientific community about the lack of positive response on the part of the Government, at least in the sense of the White Paper … on biotechnology."
One of the values of the report is that the appendices contain some extraordinarily interesting summaries on the way in which the task is discharged in France, Germany, Japan and the United States. The Shell Group memorandum continues:"There is a need for a supra-Departmental function not presently carried out. The United Kingdom system for influencing Government policy is of a very amateur nature compared with the much more professional and effective arrangements enjoyed elsewhere."
What a damning statement! The memorandum stated that one comment was based on"Our system has been designed to ensure an almost complete decoupling of the cognoscenti from the policy makers."
The University of Cambridge, still the premier scientific institution in the country, commented in its memorandum on the neglected channels of communication between Government and the wider scientific community. It reinforced the regret that no action had been taken on the ACARD reports. It argued:"a lifetime's despair of wrong decisions, missed opportunities and all the other ills arising from the lack of informed scientific management in Government circles."
Finally, Lord Trent, a former Secretary to the Cabinet, commented:"The Cabinet Office cannot hope to cover the range of topics which must occur".
That is as disturbing a series of comments on a vital sector of our national performance from witnesses of great authority as I have heard in many a long day, and I assure the House that that was not a particularly vitriolic selection. I return now to the report. I shall begin with some of its more critical comments and then I shall turn to its conclusions and policy recommendations, some of which I accept wholeheartedly, and some I do not. First, there are several comments on the capacity of the Government machine to absorb advice. It is described in one section of the report as:"We do not have Ministers other than the present Prime Minister who are educated in this area. There is no parallel to Monsieur Pierre Aigrain in France."
The Government reveal"a bottomless pit into which advice is poured and lost for ever."
The period over which the comments are based covers several Governments of both parties. Opposition Members will realise that I am making not a party point, but a general point about the machinery of government. Those are devastating criticisms. If there is widespread belief that the machine takes no notice of and is indifferent to scientific advice, even the most radical restructuring of the advice apparatus will have very little effect. I come next to the distinctions that the Committee perceives between the structure of Departments, the character of the advice and the nature of the problems to be dealt with. Here there is a profound mismatch. The report puts it most succinctly:"a capacity to absorb advice without betraying any signs of being affected by it … What is lacking is an awareness among Ministers and their senior non-scientific officials of the value of scientific advice from an early stage in the decision-making process."
Those are the reasons that some of us advanced for the retention of the old Select Committee on Science and Technology, but neither the House nor the Government heard what we were saying. No wonder there is"the implications of new technologies cannot be contained witin the somewhat arbitrary divisions of responsibility between Departments. Fundamental, critical and innovatory questions do not lie happily in Departments … scientific advice now tends to be viewed too narrowly. It is understood, too often, only in terms of existing objectives rather than as part of the mechanism for establishing objectives, policies and priorities."
and that many witnesses have"a widespread feeling of unease"
There are two other fundamental criticisms that I cannot allow to pass. The first is that"expressed misgivings, even grave concern about the quantity and in some cases the quality of scientific advice and readiness with which it is sought."
That is a grave allegation. However, I am not sure that it is not outweighed by the following comment, which takes us to the very heart of the matter and which I draw particularly to the attention of the House. The report states:"there is little overall co-ordination of scientific effort between the Departments of Industry, Energy and the Environment, and no systematic attempts to involve industry in its planning."
That brings me conveniently to the Committee's analysis and policy recommendations. It argues from four major premises. The first is that there is no need for a new Department of Science and Technology. It was generally thought by witnesses that that was not desirable or logical. I disagree, but I shall come back to that. The second is that there is nevertheless a need for a Cabinet Minister designated to speak for science and technology in addition to other responsibilities. I accept the major premise, but not the minor one. The third is that the Prime Minister who has the formal co-ordinating responsibility has not exercised it except on rare occasions, has no time to exercise it and quite possibly should not exercise it. The Committee recognises the "clout" of her office and is flattered, I think, by the occasional personal interest and attention which is always genuine and effective. But, as she is usually engaged on other fronts,"at present there is a vacuum at the centre."
In brief, the Committee wants an advocate."a case without an advocate is liable to be lost or forgotten."
I listened to some of the evidence when the Committee was sitting, and I recall Sir Ian Bancroft asking on how many occasions the chief scientists had had access to the Prime Minister. The answer was "on occasion", which said a great deal. That could be interpreted to mean that the chief scientist had access to her when and if the Prime Minister's senior civil servants thought that she should take up her time with such matters.
The hon. Gentleman makes a valuable point and strengthens my case.
The Committee recommends a restructuring of science administration, starting with a Government chief scientist in the highest rank of the Central Policy Review Staff. It included a proposal that there should be a new council on science and technology which in time would report to ParliamentThere are many other recommendations, none of them without interest and significance, but I shall concentrate on four. I start with the conclusion that no Department is needed. I recognise the great force of that argument, but I do not accept it for the following reasons. First, science and technology are now as central to every major Department of State as any other factor influencing policy. If that is true of the financial and economic, and those justify a Treasury overview, and that overview can be coordinated without loss of departmental authority or autonomy, it can be done for science and technology. Indeed, it is done in France, Germany and Japan, all of which have such Ministries. That is an illustration, not an argument. I do not believe that the vacuum-filling function that the report addresses to us can be satisfactorily fulfilled by a council, however eminent, wide or augmented its scope, or however eminent its membership. Such a council may be needed in addition. I come next to the need for an existing Cabinet Minister to take on a new and additional responsibility for science and technology. That smacks of the half-hearted commitment that the Committee rightly condemns. Existing Ministers have enormous burdens and responsibilities. Doubtless they could all do more, but that is not what is wanted. The Committee puts its case indirectly in words upon which I cannot improve:"through whichever ministerial channel is adopted."
I endorse every word of that conclusion. However, if that is true, the responsibility must be neither blurred nor diminished; it must be wholehearted. It must be a total commitment, a commitment of the sort that the Prime Minister would give if she had no other responsibilities. Moreover, the"Adequate provision for research and development, the supply of technical qualified manpower and the creation of a climate conducive to the growth of science and technology are no less important to the future of Britain than appropriate fiscal measures and the establishment of a congenial economic climate."
of scientific advice is not a part-time function."willing and informed reception"
is not a partial function, however brilliant the Minister. If, to use another of the report's phrases,"Thinking and speaking for science and technology in Cabinet"
that discovery is unlikely to be made by a present member of the Government who, like all their predecessors, have not yet found the answer to the question. If the scientific dimension in Government as a whole is to be strengthened as the Committee asks, that requires a new office, a new man and new approach. I do not suggest an ancient title such as Lord Privy Seal or an appointment without portfolio. I hope that the unpleasant attributes of the Cromwellian age will not be slung at me if I suggest that the appropriate title might be something like the Great Protagonist. For whatever we call him and whatever rank or powers are associated with his office, that is what we need. The requirement is for a First Lord of Science, and that is what we have not so far had, although the four Ministers who have attempted in the past to discharge this important responsibility have doubtless been considerable advocates. If, as the Committee argues, "the receiver"—in this instance the Government—"is not switched on", someone must be prepared to switch it on, and not merely in a council or as an adjunct to existing responsibilities in another Department of State. New responsibilities must be matched by new power and by money and resources. I turn to the restructuring of science administration. I endorse wholeheartedly the recommendation that the new Council for Science and Technology should report annually to the House. I would go further. It is time for Parliament as an institution to recognise the challenge. I am much impressed by the idea advanced by Lord Bessborough that there should be a Select Committee of both Houses with, for example, six members from each place, to which the new Council for Science and Technology should present its annual report. The National Research Council in the United States produces one report a day. If output on that scale is to be monitored, something akin to the Office of Technology's assessment in the United States will have to be created in the United Kingdom, although on an appropriate smaller scale, to serve both Houses. If, as the Committee argues,"no one has yet found a really satisfactory way of integrating scientific and technological advice into the Central Government machine",
Parliament is neglecting its duties and responsibilities if in turn it cannot monitor and influence Government decisions and policies. I make one more suggestion under the heading "structure". The Department of Education and Science has not come out of the inquiry very well, even though the Advisory Board to the Research Council is thought to have done a useful and important job. It is evident that science and, to some extent, higher education are Cinderellas. Moreover, the Department of Education and Science has allowed the United Kingdom to enter the 1980s with a school-leaving population—this is admitted in the memorandum of the Royal Society—to be in a sense scientifically illiterate in large numbers. It cannot make a strong claim to retain a significant responsibility for science in higher education. I propose, first, that there should be a Department of Education, and let us call it such. Secondly, the responsibility for higher education, science, the Advisory Board to the Research Council and other organisations that could be brought in appropriately should be transferred to a new Ministry. Thirdly, the science component of school education should be upgraded in importance at the earliest possible moment, even if it is properly described as "education". Fourthly, the highest priority should he given to creating and strengthening links between the Cabinet, the advisory and/or executive machinery of science and technology and the two Houses of Parliament. We need to put a high voltage current through the entire apparatus, but we must not blow all the fuses. We shall require the installation of a few new fuse boxes here and there as well as a more powerful generator. We must not limit ourselves entirely to what the present wiring and fuses will allow. We know that that is not enough. We know that it has not been working and we know that it will not work. We must not continue with what Lord Flowers has described as the"Ministers collectively … have to decide whether levels of expenditure on particular branches of Science and Technology are commensurate with the strategic and national importance of the policies they serve",
What a phrase! In his powerful and interesting evidence, which I commend to hon. Members, Lord Flowers refers to Parliament's preoccupation with finance and economics. He referred to those subjects in a trenchant phrase as "secondary derivatives". He is absolutely right. We discuss secondary derivatives in this place endlessly, first, because they are familiar, secondly, because the public understand them, and, thirdly, because by convention political power has hitherto been associated more with secondary derivatives than anything else. That will no longer do. The OECD is not alone in observing in one of its brilliant reports entitled "Technological Change and Economic Policy" that"massive inaction on the part of the whole Government mechanism."
In my judgment, their Lordships have rendered the nation a great service. This is not a party issue. I shall conclude by being so bold as to argue that the party that addresses itself to these problems and solves them will deserve to govern and that no other should. It will do so increasingly on the basis of policies which fall outside the conventional mode of redistributive politics."today's economic problems have structured long-term roots, and that as a consequence, they will not submit to solutions in which economic and scientific-technological policies stand apart from each other as they have all too often in the past."
8.17 pm
First, I warmly congratulate my hon. Friend the Member for Havant and Waterloo (Mr. Lloyd) on raising this matter. He has worthy credentials to speak on science and Government with authority. For about eight years he was a member of the Select Committee on Science and Technology. He was Chairman of its Sub-committee on Science in 1975. He was Chairman of the Sub-committee on Technological Innovation from 1976 to 1979. He is now Chairman of the Select Committee on Energy and Chairman of the all-party committee on information technology.
My hon. Friend advanced his arguments with force and passion and I assure him without equivocation that his comments and suggestions will be given the most careful consideration. He will not expect me to go beyond that. He made it clear that he was talking often in more radical terms than the report, which he rightly described as significant and important. One is envious of another place that it can produce a report of such high quality. As an engineer myself, I feel that this place should be producing a similar report of its own volition. Perhaps it is one further reason for keeping our present system of a two-House Parliament, which enables us to produce such valuable reports in another place. I, too, have read the report with great interest. As a member of the Institution of Mechanical and General Technician Engineers—I think that I am the only mechanical engineer in the present Administration—I was delighted with the seventh paragraph of the opening chapter, which makes it clear that the artificial distinction between basic and applied science is one about which we should be wary. I approve of the assertion in the same paragraph that engineering has been undervalued. It advises us that a conscious effort is called for to change past habits, as the Finniston inquiry underlined. I hope that what has flowed from the Finniston inquiry will allow the engineering profession in Britain to assert its point of view more powerfully within the affairs of the nation. The report was published only on 9 December. Therefore, it is too soon for the Government to have considered it and determined their view of its many recommendations. The Government shall of course give the report most careful consideration. The Select Committee's recommendations cover many Departments, all of which will wish to study them with due care. Although I do not accept my hon. Friend's criticisms, I accept willingly that there are no grounds for complacency about the quality of political decisions on major national issues during recent decades involving a significant scientific or technological content. Like my hon. Friend, I make no party point when I say that or when I say that I wish that more hon. Members and Ministers had the enormous advantage of scientific or engineering training and experience. The Prime Minister has had that advantage. When one remembers that science, technology and engineering-based industries contribute enormously to our national wealth, that reality should be better reflected in the House and in many other aspects of our national life. I hope that the Committee's report will help to improve matters. I have much sympathy with the opening sentences of chapter 3 of the report, which state:My hon. Friend went rather further than that. However, during the time that I have been a Member of Parliament, bearing in mind my training as an engineer, when considering such matters I have found myself in sympathy with that feeling of unease. Things are not quite right. Perhaps we can never get them quite right, but at least the report and my hon. Friend's speech will be a contribution in the right direction. I hope that both will help to improve matters. I am grateful to my hon. Friend for having underlined the importance of the report. The Government have not yet had an opportunity to consider the many items within it, but the highly significant conclusion is that there is a need to strengthen the scientific dimension within Government. We must dispel the suspicion and mistrust between the scientific community and the administrative establishment of the Government. The report, from which my hon. Friend acknowledged that he made selective quotations, underlined the point. All of us in Government, in the House and elsewhere must do what we can to improve matters."Nowhere was there either unstinted praise or outright condemnation of the present system. Nearly everywhere, however, a feeling of unease could be detected, a feeling that things were not quite right without anything being obviously wrong."
I attended eight sessions of the Lords Committee and saw how much trouble some busy individuals had taken in putting the report together. Of course, no one believes that the Government can advance conclusions on a report that was published on 9 December, but we wish to have some idea of a timetable. Are we likely to have some Government reaction before the Summer Recess, because by May or June, after all the trouble that has been taken by many busy individuals and a very competent staff—such as Dr. Peter Warren—the report will be worthy of some serious response.
I am glad that I gave way to the hon. Gentleman, who has Shadow responsibility for the matter, because it allows me to underline what he said about the many people who took the time and trouble to give their views to the Committee. Those views are recorded in the second volume of the report and are well worth reading. I hope that many hon. Members and people outside the House will draw upon the work.
The hon. Gentleman asked when the Government can reply. That is not a matter wholly within my control. I assure him that work is already in hand to bring together the many diverse interests in the Government that are concerned about the matter. I hope that at least a preliminary response will be made to the Select Committee, in accordance with normal practice, before the Summer Recess. I conclude on a note that might well strike a chord with all those who are interested in such matters. The concluding sentences of the report state:I, and I hope many other hon. Members, say "amen" to that. I hope that the report and tonight's brief debate will bring that action more quickly."But effective action to improve the climate of scientific and technical advice is needed soon. As a commodity advice may be cheap for it is profusely given. More precious is the ability to appreciate it and to secure the co-operation of the best advisers."
Animal Breeding Research Organisation
8.26 pm
I am grateful for the opportunity to raise the important matter of the future of the Animal Breeding Research Organisation. It is appropriate that the debate should follow a general debate on science policy. Last week the Agricultural Research Council announced that it was considering the complete closure of the Animal Breeding Research Organisation to reduce expenditure. The proposed closure is in response to the Government's overall policy of reducing public expenditure—a policy that is causing immense damage to Britain in increased unemployment, damage to our industrial base and a deterioration in our social services.
Above all, the Government's cuts in research and development and higher education are foolish and represent a serious setback to Britain's future. If we are to progress as a nation, we must invest in science and technology and in the education of our people. The research has been of the greatest benefit to our agriculture industry. We need more agricultural research and development, not less. I wish to deal with the threat to the Edinburgh-based Animal Breeding and Research Organisation, which is the only Government research station connected with animal genetics and breeding. There are three plant breeding stations but only one animal breeding station. The great benefit of genetic improvement is that it is cumulative and continuing. For example, even if more effective pesticides and fertilisers are evolved, their application is necessary year after year and costs money each year. Equally, if the nutrition of a particular livestock population is improved, the cost still continues. However, once the inherent productivity and efficiency of an animal or plant is improved, the cost to the industry is cut down for good. That is why genetic research and development for crops and livestock is fundamental and crucial to agriculture. ABRO was set up in 1945. It was then called the National Animal Breeding and Genetics Research Organisation. It has made a remarkable contribution to agriculture and is internationally famous. The United Kingdom is by far the leading country in Europe in animal genetics and breeding, and the major credit rests with ABRO. I make no apology for dealing with ABRO's work at length. It is important to understand the enormity of its contribution. In recent decades there has been a revolution in pig and poultry breeding. The early work on poultry breeding was carried out mainly in the United States, but the basis was laid at ABRO for the important, even dramatic, improvements in the application of genetics to pig breeding. Its work has been the basis for the combined performance and progeny testing of pigs. The scheme was implemented by the Pig Industry Development Authority, which became the Meat and Livestock Commission. ft is applied by pig breeding companies in the United Kingdom and elsewhere. The basic mathematical work for all the developments was done by the geneticists at ABRO. They also did important work in the cross breeding of pigs and in other areas. Recently a paper was published by Dr. Smith and others which estimated the benefit to our pig breeding industry of the improvement. The net benefit per annum is about £100 million, yet by closing ABRO and part of Long Ashton the Agricultural Research Council reckons that it will save only about £3 million. The gross output of the pig industry is about £780 million. If the proposal goes ahead, we shall be lucky to have one pig geneticist in our Government research stations, although we should have an anemone, an apple and a broccoli breeder. It would be ridiculous if we were to lose that important area of research. The Pig Improvement Co. is the biggest United Kingdom pig breeding company. It exports large numbers of high quality pigs throughout the world. It is part of the multinational Dalgety group. Dr. Maurice Bichard, the technical director, states:The paper then goes on to refer to the important work of ABRO in this sphere which would be jeopardised if the proposal were to go ahead. Pigs are only one part of ABRO's activity. Some of the important early work on dairy cattle breeding, which formed the basis of the contemporary comparison method of evaluating the genetic potential of dairy cattle, was carried out at ABRO and at the Institute of Animal Genetics in Edinburgh. ABRO also provides an important cattle blood typing service which is of fundamental importance to the industry. I quote John Thorley, secretary of the National Cattle Breeders' Association and the National Sheep Association:"ABRO is the only centre in the UK doing basic quantitative work on animal breeding. The team of directors, John King, Dr. Charles Smith and Dr. John Webb, are amongst the most respected pig geneticists anywhere in the world. They have contributed to the UK's undoubted lead in pig breeding, and work done 20 years ago by ABRO spelled out the principles on which PIC and other pig breeding companies have been based. ABRO's work is the essential foundation for our pig industry's future improvement policies. It is a myth to think that commercial breeding organisations can generate sufficient profits to fund their own in-house research facilities. We still depend a great deal upon academic research."
ABRO has developed an important sheep group breeding scheme under which farmers in Wales co-operate in the improvement of their sheep population. Here, again, we have an important and continuing development which could provide the basis for genetic improvement. ABRO has made an enormous contribution to important fundamental research. For example, the work that it has done on scrapie has led to the establishment of a joint ARC-MRC neuropathogenesis unit at ABRO. My hon. Friend the Member for Berwick and East Lothian (Mr. Home Robertson), who is unable to be with us this evening, asked me to make it clear that one of his constituents, Jim Stoke, a past president of the National Farmers Union of Scotland, has expressed his concern at the proposal and said that it could mean the end of an important collaborative venture between the Animal Diseases Research Association and the Animal Breeding Research Organisation on the uptake of trace metals in livestock. I am glad that my hon. Friend the Member for Midlothian (Mr. Eadie) is here tonight. On previous occasions he has raised the threat to research and development. He has—as has the right hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel)—a constituency interest. The Civil Service unions involved are shocked by the announcement and determined to resist it. I have spoken to representatives of the Institution of Professional Civil Servants, the main union involved, and of the Civil Service Union, which has a significant membership involved. The local Member of Parliament, the hon. Member for Edinburgh, South (Mr. Ancram), also contacted me. He cannot be here for the good reason that today he is in his constituency meeting representatives from ABRO. There has been an enormous reaction to the proposal from the agriculture industry. The leader in The Scottish Farmer last week stated:"To close ABRO or just reduce its activities would be a tragedy. It is terrifying to think that the ARC can even contemplate such action, without full consultation with the whole livestock industry. Quite frankly, it makes no sense whatsoever."
Last week's Farmers' Weekly, in its leader, stated:"Scotland's biggest single industry is agriculture and, within that industry, livestock production easily predominates. The loss of a country's Animal Breeding Research Organisation is a blow not only to livestock breeding prestige—which is an important commercial factor—but to its rate of progress. The adverse effects may take some time before they are felt but agriculture is a long-term industry."
The leader in Big Farm Weekly last week said:"Can anyone question the contribution geneticists have made over the past 30 years to the improvement of our cattle, sheep and pigs. ABRO has been active in fundamental science and in use of the results to put money into producers' pockets. … Confirmation of the death sentence on ABRO can only depress the British livestock industry while cheering the Continentals as they pump cash into projects we could abandon."
The National Farmers Union has come out strongly against the proposal. The Animal Breeding Research Organisation is a priceless national scientific and agricultural asset. I cannot emphasise too strongly that it is the only animal breeding and genetics research station in the country. If it is closed, the work will not continue. Can anyone imagine a proposal to close an institute with this reputation, carrying out this sort of work, in France or West Germany? The closure of ABRO would represent an act of scientific vandalism and raise questions about the credibility of the Agricultural Research Council. I asked the Under-Secretary of State for Education and Science what consultation had taken place about the proposal. He has replied to me today, giving an assurance that the Agricultural Research Council will be seeking the views of the board of the joint consultative organisation on agricultural research. I trust that when the ARC has had an opportunity to consider the views of the JCO and of all the other interests which are so much opposed to the proposal, there will be no question of its going ahead and the proposal to close ABRO will be abandoned. Nothing less will suffice if we are to do justice to the needs of our agriculture industry or the interest of the country as a whole."A further cause for disquiet as far as ABRO is concerned is the equally shocked reaction of institutions in the livestock industry which are well placed to judge the value of its work."
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Another closure proposed by the Agricultural Research Council in its press handout dated 14 December concerns the Long Ashton research station in my constituency. The ARC is considering the closure of the pomology division and the food and beverages division. I visited the Long Ashton research station last Friday to have a first-hand view of its reaction to the press handout. I have a high regard for the quality of the work that is done at Long Ashton.
The closure would involve the loss of about 100 jobs and two-fifths of the work done at the research station. It would be a devastating blow to a research station whose work is well known at home and abroad. This is not the occasion on which to argue at any length the merits of the case. However, I wish to make a few brief comments to the Minister. The two divisions concerned are engaged in important—and in some cases unique—work of great value to fruit growers, wine and cider producers, housewives and the mounting problem of food poisoning. The pomology division has the only breeding programme in the agricultural research service on strawberries, plums and apples. One has only to think of the French threat from the Golden Delicious to recognise the significance of Long Ashton's work on the Cox apple. The food and beverages division undertakes food projects recently designated as of high priority by the Ministry of Agriculture, Fisheries and Food and the Agricultural Research Council. The division also has a special reputation for the safe handling and storage of food in the home. This work is supported by the Department of Health and Social Security as well as by the Ministry of Agriculture, Fisheries and Food. My main concern is to put on record the apparent lack of consultation with the staff of Long Ashton, with the trades unions involved—particularly the Institution of Professional Civil Servants—and with the commercial interests which help to finance the projects. I understand that no firm decisions have yet been taken and that these matters will he considered at the meeting of the Agricultural Research Council in February. I should like an assurance from my hon. Friend the Minister that that, indeed, is the position, and no decisions have yet been taken. Will the Minister give a further assurance that there will be full consultation with all concerned and that adequate time will be allowed for the whole matter to be properly considered? A press handout, like a bolt from the blue from London, is no way to treat distinguished scientists doing long-term research at Long Ashton. The morale of the people concerned has been substantially damaged by this press handout. I hope that my hon. Friend will be able to give assurances this evening which will help to repair that morale and to maintain the reputation of a renowned research station.8.47 pm
Like the hon. Member for Somerset, North (Mr. Dean), I first heard of the proposed closure through the press handout of the Agricultural Research Council on 14 December. However, I hope that he will forgive me if I return to the question of the Animal Breeding Research Organisation, which has a profound effect in my constituency.
We should congratulate and thank the hon. Member for Edinburgh, East (Mr. Strang) for raising this subject. It is one in which he has a particular interest and expertise, both as a former employee of the organisation and a former Minister responsible for this work. I do not want simply to repeat all that he said, because his expertise on the matter is considerable, but it is undoubtedly the case that the work of the organisation is highly valued throughout agriculture. The fact that there is a serious proposition that the bulk of its work could be brought to a halt has been viewed with great shock among ordinary farmers. The Government are always keen, as we all are, to talk about productivity and the importance of raising it, saying that the key to all of our problems is to improve productivity. I can think of no area in our commercial life over the past 20 years in which productivity has seen a more marked increase than sheep farming. If the same productivity increase were mirrored throughout the rest of agriculture and British industry, we would not be in our present parlous economic state. Why has that increase happened? It has not happened because of a change in weather or a change in the financial system of grants. It has happened because of the very hard work that has been put into the research and development of breeding techniques in sheep, so that there is now a greater value and a greater success rate in lambing than was possible 20 years ago. That work is not exclusively placed in the Animal Breeding Research Organisation, but it had a considerable part to play in it. The organisation is not engaged in airy-fairy theoretical academic research. This is hard research which has practical and daily application. If the organisation were closed, or substantial parts of it were closed, much of the work that it is now doing would be lost. That does not mean work that the organisation has done, but work which it is currently doing. One cannot simply shut down a research programme in one year for the sake of a saving in the budget. It is obvious that work that has already been invested in over the years will be lost if these programmes are brought to a halt. The press release referred to the work of the Animal Breeding Research Organisation as having beenunder the heading of the Agricultural Research Council. That seems a strange definition. I wonder what is of higher priority. Perhaps the Minister can tell us. The press release also referred to the "complete closure" of the organisation"identified as of lower priority"
Many of my constituents work in the organisation. In particular, I have in my constituency one of the organisation's farms—Blythbank farm, in Peeblesshire. I hope that that farm comes under the heading of being engaged in high priority work in animal genetics. If the Minister could give me an assurance on that today, I should be grateful. The last time that I visited Blythbank farm was to accompany the Prince of Wales. It would be strange if a Royal visit were followed, within a few months, by the closure of this part of the organisation."with the exception of about one fifth of its programme in particular work of high priority in fundamental animal genetics".
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I am grateful for the opportunity to follow the right hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel) in this debate initiated by the hon. Member for Edinburgh, East (Mr. Strang) on the important question of the prospective closure of the Animal Breeding Research Organisation.
The point has already been well made that the approach of the Agricultural Research Council to this problem does not inspire confidence. It faces the problem which rightly faces many other bodies which depend upon Government money at this time—that of seeking to bring overall expenditure within the funds available. In my view, however, decision to cut £3 million from an overall budget of £86 million by simply removing, root and branch, an organisation which is widely recognised in the industry and by farmers throughout the country as extremely valuable is not the right decision. The value of the Animal Breeding Research Organisation is well evidenced by the reaction emphasised by the hon. Member for Edinburgh, East and to be found in the centre pages of the recent edition of the Farmers Weekly. I draw attention to the remarks of the National Cattle Breeders' Association and the National Sheep Association, both of which represent people who are deeply and intimately concerned with the often spectacular results of the organisation's work. It has also been pointed out how significantly our production in these areas of animal breeding has expanded and the enormous value to the economy of the cattle, sheep and pigs which are so much better produced today than 30 years ago when the organisation was founded. I ask that the ARC should look again at the policy that it adopts when tackling necessary economies. It is not good enough to let everybody else off the hook while setting out to clobber only two bodies in order to achieve the reductions of £3 million. It is difficult to believe that the council has looked carefully enough at the work that it funds before reaching the drastic decisions about the Fruit Research Organisation and ABRO. I hope that the council will look at the matter again and consult the cattle, pigs and sheep sectors of the industry to find a more sensible solution. If it feels that it cannot do so, it should keep the Minister closely in touch with developments. My right hon. Friend the Minister of Agriculture, Fisheries and Food frequently says that we must get the product right and improve products so that we have goods that are widely saleable not only in this country, but throughout Europe and the world. Agriculture is one of our most efficient industries. If its performance were emulated across the board, we would be in a much better position. We should not cut out such an important scientific support as ABRO without the most careful consideration. I hope that the decision will be reconsidered with much more careful thought than appears to have been the case so far.8.56 pm
My hon. Friend the Member for Edinburgh, East (Mr. Strang) said that we were discussing Britain's only farm animal breeding research unit and pointed out that about 200 jobs could be at risk. I have a constituency interest, because part of the Animal Breeding Research Organisation is in Midlothian and I have been contacted about it by a number of constituents.
I congratulate my hon. Friend the Member for Edinburgh, East on introducing the debate, but I cannot rival his expertise. As the right hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel) said, my hon. Friend used to work for the establishment, he has shadow responsibilities for agriculture and was the Parliamentary Secretary to the Minister of Agriculture, Fisheries and Food in the Labour Government. I do not want to be repetitious—many right hon. and hon. Members have taken part in the debate—but it is as well to point out that the director of ABRO has been reported in the press as being aghast at the proposal to close ABRO. All the hon. Members who have spoken in the debate have said that livestock breeding is of fundamental importance to Britain in general and to Scotland in particular. My information is that the decision to axe ABRO was taken by the ARC on 8 December. Perhaps the Minister will confirm that, because the date is important. I understand that the director was summoned to London and told that the bulk of the work at the unit would end about 1983–84 and that about four-fifths of the 200 jobs would eventually disappear. Hon. Members are entitled to ask the Government what role they played in the decision and to inquire whether the work force was consulted. I hope that the Minister will not say that this matter rested within the discretion of the ARC. I should have thought that the Government would want to know precisely what was happening. If the Government have not been involved, hon. Members will wish to know whether they intend to become involved and to respond to the points that have been made. The initial reaction of Dr. John King, the director of the Animal Breeding Research Organisation, according to an article in The Scotsman on 15 December was "one of bewilderment". He was quoted as saying:I hope that it will not be considered that hon. Members are discussing a little local difficulty. This matter is of supreme importance not only to the constituencies of right hon. and hon. Members who have taken part in the debate but to the country as a whole. It is clear that the ARC, in closing a research link with Edinburgh that goes back to 1927, was motivated by the financial climate not only now but in future, according to what hon. Members have been told. That is ironic. On my way to the House today, I was listening to extracts from a new year message by the Prime Minister in which she said that things were improving. If, in those circumstances, the decision is taken to close the unit, it will obviously be closed for a considerable time. The unit has conducted vital research in animal genetics. It is estimated that its work in relation to pigs over the last two decades has saved that sector of the industry about £100 million. I understand that the unit was responsible for the introduction of the Texel sheep, which has made a significant impact on the meat trade. That was the point that the right hon. Member for Roxburgh, Selkirk and Peebles was trying to make. I understood that a total budget of £86 million was involved and that savings of about £3 million had to be made. When dealing with research and development, a £3 million so-called saving seems niggardly compared with the impact that the unit has made. What is the Government's attitude towards research? I had some responsibility, as a Minister, for forms of research and development. If the approach to scientific research and development is to be based on financial criteria, we might as well shut up shop. No research and development will be possible if the acid test is one of finance. Perhaps our approach to research and development is based on that kind of criteria. That may be why some of our biggest competitors seem to be running away from us in this respect. I feel very strongly about this matter. I have been involved in trying to prevent the contraction of the establishment at Roslin and in approaching the Government on its behalf. The right hon. Member for Roxburgh, Selkirk and Peebles may appreciate what I say more than anyone else here. President Lyndon Johnson was at a dinner when someone was called upon to say grace. President Johnson shouted "Please speak up." The person who was saying grace said "Mr. President of the United States, I am not speaking to you." I want to make it perfectly clear that we are speaking to the Government tonight, and in no uncertain terms. I hope that the Minister will give a satisfactory reply. This establishment must be retained in the interests of agriculture, in the interests of the nation and in the best interests of any Government who seek to represent those interests."I just don't see the rationale for it. The loss of the unit and the work here would be felt by the livestock industry by the end of the century."
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I join hon. Members in congratulating the hon. Member for Edinburgh, East (Mr. Strang) on having raised this subject. It is clear from what has been said on both sides of the House that there is considerable concern about it. It is just as well, therefore, that the Consolidated Fund Bill has offered us an opportunity to discuss it. Moreover, I respect the hon. Gentleman's interest in and knowledge of the Agricultural Research Council and the Animal Breeding Research Organisation. As the hon. Gentleman said, he worked there at one time.
I accept that this decision, if it is made, will have considerable importance for the local community and for the agricultural and scientific community not only in Scotland but in the rest of the country. Before I come to the issues that were raised, I want to mention cuts and no cuts, because there appears to be a misapprehension by some hon. Members, including my hon. and learned Friend the Member for Hemel Hempstead (Mr. Lyell). The Government have protected the science budget where it refers to the research councils, and in his announcement this morning in answer to a written question my right hon. Friend the Secretary of State for Education and Science said that for next year it would be £477·9 million which maintains, in real terms, this year's level, adjusted to allow for Government pay and price increases, and includes an allowance of 4 per cent. for increased rates for post graduate student grants made by the councils. The decision on how the sum for next year will be divided between the research councils has not yet been announced. It will be announced shortly. I assure the House that, to date—and no doubt for the future, although I cannot give the figures—the ARC has been treated well financially, as I think it will acknowledge. In the current year, its funding has been £42·1 million, which in real terms was up over last year. I agree that it was up by only a small amount—0·3 per cent.—but it was up. I should add that these figures are not yet definite, as we are still in medias res. What may happen? The decision—or rather the proposal, because it is not yet a decision—was not the result of any cuts imposed by the Government. It was not the result of any reduction in the council's budget. I shall explain the reason for the proposition, but before doing so, perhaps I may give some reassurances to hon. Members. No decision has yet been taken. The hon. Member for Midlothian (Mr. Eadie) was right when he said that the discussion was held on 8 December, and the press release was issued on 14 December. No decision was taken. as was made quite clear in the press release. The closure is still under consideration. I can tell my hon. Friend the Member for Somerset, North (Mr. Dean) that the decision about Long Ashton is also under consideration. I shall say a few words about that later. The decision probably will be taken at the next meeting of the council, which is in February. I say "probably" because I understand that that is the present intention. However, I am sure that the words spoken in the debate will carry weight. If it is felt by the council that it has not had time to give the matter sufficient consideration, in its wisdom it may decide to defer that decision. That is a matter for the council. I assure the House that the council is consulting, has consulted and wishes to consult as many interested parties as it can. It has already initiated discussions with the trade unions and with many organisations involved in the funding or the working of ABRO. The cattle breeders' association and the sheep breeders have written about this. The council has also discussed the matter with the universities concerned and has consulted, among others, the joint consultative organisation. I assure the House that the council is consulting widely, and it is grateful for any contributions to the consultative process. I remind the House, however, that the ARC operates under the terms of a Royal charter and must reach its own decisions. It is not for the Government to tell anybody operating under a Royal charter what it should do. That would be in contravention of the terms of the charter.The hon. Gentleman said that the ARC worked under a Royal charter. However, there is some Government representation on the council, so the Government must know what is happening. It must be reported to the Government. Will the hon. Gentleman confirm that some dialogue is taking place between the ARC and the Government?
I shall be telling the House how the ARC views this matter and why it is considering taking the decision.
The hon. Gentleman spoke of the trade unions being consulted. Will he say which were consulted and when?
I cannot tell the hon. Gentleman when they were consulted. All I can say is that the consultation must have taken place after the press release was issued and before today. The council has also consulted the staff council. But I repeat that no decision has been taken.
Right hon. and hon. Members must be clear why the council proposes to take this action. There are perhaps some misapprehensions. We are talking about four-fifths of the ABRO programme, and the four-fifths consist of a long-term programme of farm animal breeding which extends over a number of years and involves many animals and considerable resources in land, staff and buildings which are committed for a long time. The right hon. Member. for Roxburgh, Selkirk and Peebles (Mr. Steel) asked why the ABRO programme was considered to be of low priority. I suggest that the council now feels that a more economic provision could be made for practical animal breeding through small-scale and laboratory studies. The ARC believes it has advanced to the stage where techniques are sufficiently well developed for it to achieve all that it needs to achieve in future, not by tying up large resources for a long time, but by working in laboratories and on small-scale studies. They will be retained and given high priority. All that is involved in fundamental animal genetics will continue.I am interested in what my hon. Friend is saying. He has a great deal of expert advice available to him. However, it is not clear from what Dr. Ralph Riley, the director of the Agricultural Research Council, recently said to the press that the matters put before us by my hon. Friend played a weighty part in that decision. The reason given—that it would be preferable to cut away two limbs completely rather than to starve gently the whole organisation—seems to conflict with what my hon. Friend is saying. Perhaps he will clarify that apparent dichotomy.
Of course. I am coming to that. Mr. Riley is saying that he is giving low priority to the capital intensive long-term animal breeding programme in the fields and wishes to retain what he believes will be sufficient to achieve the objectives in laboratories and in small-scale studies.
Clearly, the research is not of negligible importance or the ARC would not have been doing it for many years. But because it is believed that the aims can be achieved in some other way the research has now been given lower priority. I shall respond shortly to my hon. Friend's question on what the ARC proposes to do with the money. If this decision goes through—I again emphasise that no decision has yet been made—it is proposed to use the present institute field station at Dryden for what are described as 10 highly innovative scientists with a supporting staff of about 40 who would conduct the animal genetic experiments. If some priority is still being given and if the funds have not been reduced, what is being achieved? I refer the hon. Gentleman to what the ARC said in its press release, which sums up the position very well:The ARC made it clear in its press release that this is not a matter of cutting to reduce total expenditure but of cutting to increase flexibility and to allow new sums to be spent on new high priority work in its institutes on agricultural food, nutrition and bio-technology. The hon. Gentleman may agree or disagree with that intention."The Council's aim is to reduce its current commitments by £3 million … so that funds may be available to the Council for new, high priority work in its own Institutes and in the Universities in fields of fundamental science relevant to agricultural, food and nutrition and biotechnology. The Council attaches great importance to retaining flexibility to undertake new work; and the reduction of commitments it is currently contemplating has this as its major aim."
I apologise to the hon. Gentleman for intervening. My understanding is that ABRO has Commissions from the Ministry of Agriculture, Fisheries and Food for long-term research and so on. Is the Minister now arguing that the situation is not so bad after all? We find it difficult to agree with that. Is the Minister telling us that the long-term research and development that has apparently been established between ABRO and the Ministry of Agriculture, Fisheries and Food will continue and that there is to be no breach of that understanding and no difficulty in carrying on that long-term research and development?
I am not saying that the situation is not so bad but the ARC believes that it will be better than it was before. It believes—if it takes the decision, it will have decided—that it can do what needs to be done in small-scale experiments in laboratories. Indeed, it has issued a press release and has thought about the matter carefully. It believes that it can take the money that it saves from long-term—I dislike the word "ongoing"—cattle breeding and spend it on new enterprises. The ARC would give a higher priority to such enterprises than to the long-term cattle breeding programme. The answer to the hon. Member for Midlothian is that the Ministry of Agriculture, Fisheries and Food will continue to fund the ARC at about half the level of work carried out at present by ABRO. Therefore, the Ministry will continue to fund the ARC.
I suggest that the ARC and the Minister will find it difficult to discover any outside scientific or agricultural experts who subscribe to the view that the small unit that he has described could make anything like the contribution made by ABRO or anything like the contribution that ABRO will make to agricultural productivity if it is allowed to continue. The proposal has clearly been made without any consultation of those concerned. It is only now that the board of the joint consultative organisation of agricultural research is being consulted. At the minimum, I hope that the Minister will assure the House that the views of the many commercial agricultural interests involved and the voices of scientists who have no axes to grind will weigh heavily with the ARC when it considers the matter next year.
If the hon. Gentleman is right and if the great body of informed opinion is as he believes it to be, it will weigh heavily with the ARC. I have a high regard for that body—as, I am sure, the hon. Gentleman does—and it will consider any representations made to it and the strength of feeling that the proposal has awakened in many quarters.
Should the proposal go through, job reductions will amount to about 250, of which 150 will come from ABRO and about 100 from Long Ashton. The ARC will do its best to redeploy those people within the council. There may be compulsory redundancies and consultations with the unions have begun. Should there be any redundancies, they will be made in line with the principal Civil Service pension scheme. My hon. Friend the Member for Somerset, North mentioned Long Ashton.Will the Minister solve the following riddle? Why have the long-term contracts that ABRO had in Midlothian with the Ministry been broken?
I shall have to take advice on that matter. I understand that no long-term contracts have been broken. There will be continuing work between the Ministry of Agriculture, Fisheries and Food and the ARC. it will be a change of contract rather than a break of contract.
Will the Minister write to me on that matter?
I shall do so. Work will continue, but not as much as before. I cannot state categorically that no contracts have been broken.
The decision at Long Ashton has not been made. It appears to be working hand in hand with that of ABRO, although I do not know whether it will raise such strength of feeling. The council sees the proposals as a logical extension of the policy that has been applied for a number of years, that being the gradual phasing out of the more traditional programme of fruit and cider research, and specifically to close two divisions, those of pomology and food and beverage. The ARC regards that work as being of low priority. The parts that are not low priority are being done elsewhere within the ARC. The more traditional work would be replaced by work in the newly established divisions for plant sciences and crop protection. The new divisions will not be affected by the closures. I assure the House that the view of the director and staff will be taken into account before any decisions are made, as will the representations made to them by anyone else who has an interest in the matter. If the proposal goes ahead, it will not be fully effective until 1983. The ARC operates under the terms of a Royal Charter. It is specifically protected by law from any outside interference. It is true that the Government, with the advice of the ABRC, funds the research councils, but once funded they have, quite rightly, the protection of a Royal charter and cannot be interfered with in their decision making within their own remits. They are inviolate in that way.I am grateful to my hon. Friend for his remarks about Long Ashton and the assurance that he has given. I was somewhat puzzled when he spoke about the phasing out of old, traditional research. Has there been some misunderstanding? When I visited Long Ashton on Friday, I gained the clear impression that a great deal of new, pioneering work was being done, which has recently received the blessing of either the Ministry of Agriculture, Fisheries and Food or the DHSS. The phasing out of more traditional research has taken place over a number of years. The new projects in both the fruit and consumer areas are significant and have recently received the backing of Government Departments. There is an element of contradiction between the Government saying that they want things to be done, and the ARC saying that they are no longer of a high priority. Will my hon. Friend comment on what appears to be a conflict?
My hon. Friend is correct. Some new and exciting work has been carried out at Long Ashton. I shall advise my hon. Friend if I am wrong, but my understanding is that that new and exciting work is now being carried out in the new divisions for plant sciences and crop protection, which are already doing some of the work of the more traditional divisions of pomology and food and beverages. The work about which my hon. Friend speaks highly will continue in the new divisions. I shall check on that and write to my hon. Friend if I am wrong. It is my understanding that the work about which he speaks highly will continue, but in a different Department and in these new divisions. I repeat that I shall let him know should I be mistaken.
The House owes a debt of gratitude to the hon. Gentleman for raising this subject. I need not tell hon. Members that I am sure that the Agricultural Research Council will read Hansard with great interest and take on board the comments of right hon. and hon. Members. I assure the House that no decision has been taken and that the council will welcome the fullest possible consultation.County Durham (Unemployment)
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I am glad of this opportunity to draw attention to the unemployment problems of the county of Durham. There is no Grand Committee in which they can be explored; there is no special Question Time during which they can be explored; and there is no Select Committee in which they can be explored. I am glad to be able to draw the attention of the House and the country to these formidable problems.
I begin by drawing attention to a written answer given by the Under-Secretary of State for Employment on 15 December. I asked him when he expected the trend of unemployment in the North of England to show a substantial improvement. He replied:We must assume, in the absence of any other information, that that is the Government's strategy for solving the adult unemployment problems of the North of England and the Durham county council area in particular. Yet the whole country knows that inflation has still not fallen to the level that this Government inherited, and it is now rising again. The whole country knows that the United Kingdom lost 40 per cent. of its competitiveness during the first two years of this Administration. Now the comparatively few firms that remain have regained about 10 per cent. of what has been lost. We know that about 800,000 jobs were lost in manufacturing industry alone in a slump that was so great that it even exceeded the depth of the slump between 1929 and 1931. Yet the Under-Secretary of State has the effrontery to tell us that the Government's strategy for solving the unemployment problems of the North is to reduce inflation and to develop a sound and competitive economy. How has this onslaught of job destruction affected the Durham county council area? Ministers may look at travel-to-work area patterns, but it may be difficult for them to gauge the effects and they may not wish to put together the unemployment problems of a county such as Durham. Between October 1980 and October 1981 unemployment in the county of Durham increased by 39 per cent., or 11,000. That means that 40,000 are unemployed in the county. It now has the fifth highest unemployment rate of all the counties in England, at 16·2 per cent. Two of the four counties with higher rates are neighbours of Durham. Cleveland has an umemployment rate of 19·1 per cent. and Tyne and Wear's is over 16 per cent. More than one in four of the unemployed in the county of Durham have been out of work for over a year. If there are 700,000 long-term unemployed now and there are soon to be over 1 million, and perhaps even 1·25 million, how many more of the unemployed in the county will find themselves among the long-term unemployed in six or 12 months? During 1980 the county of Durham experienced an increase of 72 per cent. in youth unemployment. There has been a sharp reduction in the county's share of regional development grant. It fell from 2·9 per cent. in 1978–79 to 1·7 per cent. in 1980–81. Between 1977 and 1981 18,000 jobs were lost in manufacturing industry in the county. Job losses have not been confined to the traditionally vulnerable east and west parts of the county. Sedgefield district council, part of which is in my constituency, lies in the relatively prosperous central corridor, which more than any other district in the county is heavily reliant on manufacturing jobs. The area lost 4,500 manufacturing jobs between 1977 and 1981, a fifth of all its jobs. The new town of Newton Aycliffe, which I have often described as the jewel in the crown of my constituency, attracted about 4,500 new jobs between 1975 and 1979, but last year alone it lost over 2,000—in other words, a loss of about one-fifth of its jobs in 12 months. It will be instructive for the Minister to consider unemployment statistics for a district council instead of for travel-to-work areas. He will know that the Durham county council and the Wear Valley district council are in severe disagreement with him about the relevance of travel-to-work areas. In the area represented by the Wear Valley district council the unemployment rate in October 1981 was 19·4 per cent., and 22·4 per cent. of working males were out of work in that month. That represents a considerable tragedy in an area which was afflicted by the mine closures of the 1960s. The people found new jobs and new hope in the great success of regional policy between 1965 and 1978, only for their hopes to be dashed again. What is the Government's strategy? I submit that the policy contained in the answer which I quoted at the beginning of my speech is not a strategy. For instance, do the Government reject the strategy suggested by the Northern region strategy team in its report? That team was of an extraordinarily high technical competence, led as it was by a World Bank economist and sponsored by central Government and local authorities. The major thrust of the report was that if the North and the county of Durham were ever to reach self-sustaining growth, it had to be done by an increased share of public expenditure. Do the Government accept that strategy? It will be strange if they do, because the relevant items of public expenditure have been reduced during their term of office. The North's share of that expenditure has been reduced. If the Government reject the strategy, it will not be entirely surprising, because they believe that public sector investment crowds out private sector investment. They wish to roll back the frontiers of the State and significantly to reduce public expenditure. They have tried often and failed miserably because they have cut back on relevant public expenditure and increased substantially public expenditure on social services. They have funded unemployment by public expenditure. Does the Minister accept that a deficiency of demand in the regional economy can be alleviated by increased public expenditure even if one concedes—I do not—that public should be reduced? Does he accept that public expenditure can underpin private investment—for example, in infrastructure—and public capital expenditure on roads, rail and British Telecom? Does he accept, as was argued by the Northern region strategy team, that public expenditure should be co-ordinated and planned in order to strengthen the economic base? If the Minister's answer to any or all of those questions is "No", he must tell us what his strategy is. He says that it is aimed at reducing inflation and developing a sound and competitive economy that will help such firms to create jobs. Is his strategy to make industries more competitive? If so, he must take it into account that the North has a preponderance of declining industries and comparatively few growing industries. Therefore, if he depends upon making existing industries more competitive, his efforts in the North and in the county of Durham will be frustrated. Is he looking to new industries to produce a revival of the fortunes of Durham county and the North? I refer to a statement by the Secretary of State for Industry before he left that position. One must assume that he would reiterate it today if he were here. He said that the new industries will bypass the traditional industrial areas. Reading between the lines, I felt that he believed that the new industries should bypass existing industrial areas. If what the Secretary of State says comes about, and if the Government look to the new industries to revive the fortunes of the North, again we shall be frustrated. However, perhaps the Government look to small businesses to solve all our problems. Small businesses and co-operatives have a contribution to make, but the United Kingdom has fewer small businesses than any other country in Europe, and, of all our regions, the North has the fewest. It also has the smallest number of start-ups. On 29 October, my hon. Friend the Member for Carlisle (Mr. Lewis) asked the Secretary of State for Industry"A reduction in adult unemployment in the North of England, as in the country as a whole, will depend primarily on the ability of firms to produce goods and services which people in this country and abroad want to buy and at prices they are prepared to pay. The Government's policies are aimed at reducing inflation and developing a sound and competitive economy which will help such firms to create the jobs we all want to see."—[Official Report, 15 December 1981; Vol. 14, c. 85.]
The reply was that, whereas the South-Eastern region had had 333 applications and had received 46·1 per cent. of the guarantees and 49·2 per cent. of the value, the North had received only 3·5 per cent. of the applications and only 3·2 per cent. of the value. In this all-embracing strategy, if the Government look to small businesses to solve the problems of Durham county and the North we shall again be severely disappointed. However, perhaps the Government rely on regional policy. Even though they have reduced the amount available for regional development grants by one-third, they say that they are channelling the money to the areas of greatest need, but, as I pointed out, Durham county's share has been sharply reduced from 2·9 per cent. in 1978–79 to 1·7 per cent. in 1980–81. By August, my constituency will no longer receive such grants. As I said, in Bishop Auckland which is part of Wear Valley district council, male unemployment is well over 20 per cent. and, generally, it is over 19 per cent. What sense is there in taking away its remaining incentives? However, leaving incentives aside, the Government have so diluted the industrial development certificate process that the scheme is hardly worth having, as witnessed by the rapid increase in industrial property values in the South-East compared with the fact that in the North we find it difficult to let empty factories. There is a deep suspicion in the North that for a long time civil servants have felt that regional policy is directly related to economic growth. There is a subtle, if not insidious, attempt to undermine the whole of regional policy. Added to the influence of the so-called experts in the Department is the strong belief of West Midland Tories, in their marginal seats, that regional policy has impoverished their areas in the last 15 years. They are putting increasing pressure upon the Government, who should listen to them. There is also the extreme competitiveness for jobs because of the efforts of every inner city area and the effectiveness of the Scottish and Welsh Development Agencies. We in the North have made our bid for a development agency all too well known, but we have continually been rebuffed by the Government, who do not see the sense of co-ordinating all the existing job-hunting agencies and giving them proper resources to get on with the job. Recently, on a visit to Japan, I discovered that the North of England Development Council had been effectively elbowed out of job hunting in Japan. Yet the Government accept that in no way can the Scottish and Welsh be elbowed out. The Welsh Development Agency has had great success in attracting Japanese companies to Wales. There are now nine companies bringing much investment and many jobs. The existence of those nine companies could be influential in deciding where the Datsun plant should be located. In the face of all those factors, perhaps the Minister will understand something of the strength of our anger and our determination to get some positive regional policy out of the Government. It seems to us in Durham that regional policy, certainly in the English regions, has been severely squeezed by the problems of the inner cities and by the heavy and effective lobbying of the West Midlands Tories in their marginal seats. Durham is no stranger to the problems of unemployment. During the 1920s and 1930s it suffered great deprivation, and again in the 1960s it suffered from the mine closures. It has deprivation which is as bad as that in any inner city area, whatever signs we examine—health, education or housing. We once thought that the problem of mass unemployment had been solved, but we are now reeling beneath the deep shock of having so many of our people unemployed. It is not merely unemployment; it is long-term unemployment. Our people have no future and no prospect. Not only have the Government given them no hope; they have reduced their benefits. They have wiped out earnings-related supplement and they hound the long-term unemployed by means of the DHSS fraud squad. They impose upon them, through their elected local authorities, slashes in services which are all the more needed because of the Government's policies. How can we solve the problem? I shall make one or two suggestions, and I have no doubt that my colleagues will make many more. We must persuade the Secretary of State for the Environment to allow Durham county council to increase its capital expenditure on the infrastructure which underpins the economic base. We must persuade the Secretary of State for Employment to review the assisted area status of areas such as mine which are having it removed. I have in mind Wear Valley district council and Sedgefield district council. Bearing in mind the unemployment level in Durham county, there Is a strong argument for special development status for the whole area. We have heard today about the Government's belated attempts to take initiatives in the area of advanced technology. We must ensure that Durham county is included in the next tranche of developments. If the new industries are to make a contribution to our areas, it will be completely inadequate to leave the matter to market forces. There has to be Government initiative on advanced technology. Why do not the Government take some initiatives on trying to explore the idea of a science park in the county of Durham? Why do not they get the academic institutions, and some of the industries which are already active in the area, to consider together how that idea can be progressed? The Durham county Members here this evening will be all too keen to give the Minister every assistance. Indeed, some of us are already exploring those ideas. Why does not the Minister accept that the banks and the financial institutions will have to be much more adventurous in areas such as ours? We must stop the leakage of our investable funds—through our pension fund premiums and our insurance fund premiums—to other areas so that they make other areas more prosperous and more competitive. The vast surge of funds overseas will destroy our competitiveness in future years. The funds which are saved by Durham county and North-Eastern people ought to be invested in the future prosperity of the Durham county council area. Instead of the Government attempting to centralise all decision-making—even though they came to power saying that they wanted to do the opposite—they must work towards the decentralisation of most major companies. Far too many head offices are located in the South and South-East. We want to have our share of regional headquarters, and of the headquarters of growing companies. They could bring jobs—in administration, in technical expertise, research, development and marketing—worthy of our teenagers. There are at present far too few such jobs in the Durham county council area. The Government must reconsider their decision about the dispersal of Government offices. We are living in the age of advanced communications. If we believe that advanced communications are to play a substantial part in making Britain prosperous again, we cannot sustain that argument and at the same time believe that head offices of companies and Government head offices must be located in the London area. Central Government offices can be effectively dispersed to other areas, with the new electronic methods and video tape conference facilities which are now at their disposal. Finally, there must be a reflation of the economy. I note smiles of derision among Conservative Members, although such smiles are getting rather fewer now. The majority of Members must now believe that the Government must do a U-turn, or go round the S-bend, and reflate the economy. If the Government were to invest in public sector capital projects, in for instance, British Rail, some of the people in my constituency in the British Rail engineering works at Shildon would directly benefit through the winning of orders. If the Government were to allow British Telecom to invest in the way that it should, some of my constituents who work for GEC—not a nationalised industry—at Newton Aycliffe would directly benefit from that public sector investment. Those of us who have lived with and breathed the problems of Durham county for many years could speak about them for very much longer. We have already risked boring the House and detaining hon. Members too long. But the problems of Durham county have now become so formidable that the people of Durham feel that they have been completely abandoned by the Government—to such an extent that what few Tory voters there were in May 1979 are now hanging their heads in shame. It is obvious from all the opinion polls that the Tory vote has completely collapsed in the North of England. The people of the county of Durham did not return the present Government. The people of the North-East of England did not return them. There are people who now wonder how on earth the Government managed to be returned, and they are saying to us "For God's sake, get rid of them, because we want a return to the prosperity that we had before 1979, let alone that great Jerusalem in the sky—the return of full employment. We would dearly love to have the prosperity that we had before May 1979". That is what the people of the county of Durham are telling us."if he will give details of the number of firms assisted … under the loan guarantees for small businesses scheme".—[Official Report, 29 October 1981; Vol. 10, c. 438.]
10.3 pm
We have heard a powerful speech from my hon. Friend the Member for Bishop Auckland (Mr. Foster). I am tempted to elaborate on the statistics he gave at the beginning of his speech. However, they were so stark that even the present Government will have to take notice of the desperate situation in which we in the county of Durham find ourselves. Therefore, I shall not spend time on that, but I hope that the Minister will not think that I do not do so for the reason that they are not important.
We are frequently reminded by the Government that the position in places such as the county of Durham can improve only when the economy of the country as a whole revives. I make two comments on that. First, the economy will not improve under the present Government's policies. My hon. Friend has made some pertinent and relevant remarks on that particular aspect. The position in the Northern region has continued to deteriorate since the Government came to power. The unemployment figures in that region have increased in every month since May 1979, and we are in the unenviable position of being top of the national unemployment league. Secondly, in such circumstances, it is the duty of a Government in a modern industrial economy to make special provision for areas such as county Durham. Although almost every week we hear the present Government protest that they are making special provision, their policies are manifestly failing miserably. I wish to speak for a few minutes about that part of my constituency which is in county Durham, because many of the facts to which my hon. Friend referred also apply to my area. The unemployment rate in Easington is now 17 per cent. Last year it was 13 per cent. and two years ago it was 10·2 per cent. Those figures illustrate the sad story that we have to tell tonight about our county. One measure of the effect of the Government's policies is the decline in population. In my constituency, the decline in population is steeper than in any other of the seven districts in county Durham. Between April 1979 and April 1980 the net migration from the county was 300. Of that total, Easington lost by far the most population of any district, namely, 500. In these circumstances, I hope that the Government will recognise that this is one of the most important measures that they could promulgate, having regard to unemployment and to the social and economic conditions applying in any area. My constituency, and indeed the whole of county Durham, is heavily dependent on coal mining. I am delighted to see the Under-Secretary of State for Energy present, because I am sure that he recognises the important role that coal mining plays in county Durham. My constituency is heavily dependent on coal mining, because 39 per cent. of the work force is employed in that industry. That is a measure of the importance of what the Government are doing to that industry. I shall spend a few minutes on what I consider to be practical suggestions relating to coal mining. The Under-Secretary of State will recall the long arguments and the protracted correspondence that we had about coking coal in Durham in relation to the steel industry. There are pits in county Durham which have produced coking coal for years and which have provided hundreds of jobs over the decades. Suddenly, last year, we were told that that coal was not satisfactory for the huge new complex which had been built at Redcar just a few miles south at Cleveland. There had been considerable investment in some of the pits in county Durham to meet, at least in part, the needs of that new steel complex. Then, suddenly, we were told that the coal was not satisfactory. Despite the inquiries and investigations which have been made, we have not yet heard the full story. I refer to what we have been told by the Government, the National Coal Board and, indeed, by the British Steel Corporation. I raised the matter informally with the chairman of the BSC as recently as last week, and he said that he was prepared to discuss this matter with me again. We were told that there were to be experiments in the blending of coal which would involve the use of Durham coking coal. What has happened about that? The Government have been strangely silent about the matter. Members of Parliament who represent Durham county are entitled to know what is happening. Hundreds of jobs for the people of county Durham are involved. I wish to discuss for the second time today the coal-fired boiler conversion scheme. At Question Time earlier, the Under-Secretary of State for Energy rightly said that it was not a matter for his Department. I realise that, but I hope that he is not shedding the problem. He is responsible for the efficient production and greater use of coal. We all applaud the fact that coal sales, including exports, have increased substantially. The conversion scheme allows only industries with oil-fired boiler plant to enjoy the benefit of grants of up to 25 per cent. of the capital cost of converting coal. I submit that, if the facility were extended to gas users, non-boiler installations in the processing industries, non-manufacturing industry and local authorities the rate of application for grants would substantially increase and sales of industrial coal would rise progressively by about 2 million tonnes per annum. That could be achieved with no increase in the £50 million already authorised for the scheme. When the Chancellor of the Exchequer introduced the scheme in this year's Budget, we welcomed it as a recognition by the Government that something had to be done. The scheme came into operation in May or June and the initial response by industry was good. Several hundred requests for advice were received, but by 8 December only 54 grant applications had been received, of which 28 had been offered grants totalling about £1 million. That speaks for itself; there is a long way to go. There must be a much greater thrust and more publicity from the Government. I suspect that they are resting on the laurels of the new scheme, but if we are to sustain coal mining as a major industry, which provides so many jobs in my county, much more must be done on the conversion scheme. The electrification of railways could make a great contribution to the coal mining industry. The Under-Secretary of State for Energy advised me at Question Time today to have second thoughts about that. I have thought deeply about what he said, but Sir Derek Ezra told me about a year ago that electrification of the railways would be the biggest single contribution that could be made to assist the NCB. I see the Under-Secretary shaking his head. I am willing to be convinced by him, but at present I would rather accept the advice of the chairman of the NCB. I am disturbed by the suggestion in the recent Flowers report that investment in coal mining should be concentrated in the Midlands and to the detriment of existing pits elsewhere. I realise that the Government have not had time to digest the report—who has?—but I am sure that I speak for my hon. Friends when I say that we are not prepared to accept that investment should be concentrated in new pits. In the view of the National Coal Board and the Government, of course, coal in larger seams is more easily extracted and leads to bigger profits. It is perhaps the case, however, that not only the Government but also the country as a whole owes something to county Durham following the difficulties experienced by our fathers, grandfathers and great-grandfathers in extracting coal from seams 18 inches high. We are, therefore, entitled to demand some consideration for the continuation of pits, particularly at a time when we are so heavily dependent on coal. The Minister knows that productivity in Durham is better than ever. He also knows—I assume that he places some importance on the fact—that there is no place in the United Kingdom where industrial relations are better. That does not apply only to the coal mining industry. I turn to another matter that I have raised on more than one ocasion in the House. I know that I am supported by my hon. Friend the Member for Bishop Auckland in what I intend to say. I refer to the Government's proposal to wind up the Peterlee and the Aycliffe new town development corporations. I shall not spend much time on this matter, because I raised it in an Adjournment debate a few weeks ago. These two development corporations are essential to job finding for a number of years to come. The target date of 1985 will simply not suffice for the need of the area. I am not talking just about Aycliffe or just about Peterlee. I am talking about a large area of county Durham including parts from which people commute to both new towns.I invite my hon. Friend, in the course of his well-prepared and well-presented case, to include in his remarks reference to Washington new town, which was located in county Durham at the time of its inception and which also has a proud record of job provision.
I agree entirely with my right hon. Friend. The only reason why I did not mention Washington new town is that it is located in the county of Tyne and Wear and we are debating county Durham. What my right hon. Friend says is true. The Government are also to end the life of Washington on 31 December 1985. I know from what I am told by my right hon. and hon. Friends representing constituencies in Tyne and Wear that it plays the same role as Peterlee and Aycliffe. I gather from informal talks and also from what I was told by the Minister in the Adjournment debate that I am asking for an open-ended commitment from the Government. I am glad to have the opportunity to say that this is not the case.
It would be silly to expect new town development corporations to continue for ever. No one expects that. I would, however, ask the Minister to extend their life for at least another five years. The Scottish new towns are not to be wound up until 1990. I see nothing in the case for that decision that differs from the conditions of county Durham and the need for jobs from these two agencies. In both corporations, there is expertise and dedication. It would be criminal to see that thrown away as soon as 1985. I make no apology for raising again the matter of Civil Service dispersal. The Government argue that we must depend on the up-turn of the economy. That is partly true. There are, however, certain things in the gift of the Government. The perfect example is the dispersal of civil servants. One of the first things that this Government did after coming to power in May 1979 was to throw out the Hardman report, which was one of the most significant and best-argued reports in recent years. It was thrown out of the window. That report recommended, among other things, that Civil Service jobs by the thousand—as many as that—should come to the Northern region. Tonight, we plead the case for county Durham. Some years ago, a number of Civil Service offices were placed in the region. I think of the savings certificates division in Durham city, which has been highly successful in itself and also in providing much-needed jobs. In my opinion, the arguments in that report are now more relevant than ever. If there is one lesson to be learnt from the industrial history of the North, and of Durham in particular, it is the crucial need for diversification. That is often urged on us by the Government. I see its benefits in my own constituency, with firms from Japan, America, and so on. They provide modern jobs to counteract the built-in difficulties of the more traditional industries, such as coal mining, shipbuilding, the steel works, and so on. I underline what my hon. Friend said about research and development. That, too, could be a conscious decision of the Government. There could be, for example, research and development in defence. At present these jobs are in the lush Southern counties. What the Government do in this connection will be a measure of the earnestness of their intentions. We should like to know why the Government have withdrawn completely from monitoring the strategic plan for the Northern region. That strategic plan was initiated by the Tory Government in 1970. Those of us from the North applauded it at the time. We felt that it could be a bible of how the Northern region, which includes Durham, could benefit. Even the monitoring which was carried out by one Government representative has now been withdrawn. We ask ourselves "Is this yet another example of the Government's lack of interest in what is happening in the region?" We may not get an answer tonight to this matter, but I emphasise that we do want an answer. Much more could be said on this subject. We could talk about the changes that the Government have made in connection with the reclamation of derelict land. The relevant Ministers in the last Conservative Government and in this Government have often paid tribute to the magnificant work that has been done by Durham county council in the reclamation of land. Those of us who were born there and have lived there all our lives have seen the transformation take place before our eyes. That work has now been stopped, because of the capital and financial arrangements that have been made. If ever there was a case for rewarding good work, that is it, and the Government should make an exception in this case. I could devote my whole speech to the Government's abandonment of the pipeline scheme to clear Durham's beaches. The people of Durham have paid a high price for getting the nation's coal. One of those prices has been the despoliation of the beaches which, as a youngster, I well remember. Now they are black as a result of the extraction of coal and its dumping into the sea. It is to the credit of the Labour Government that in 1975 they decided that it had to stop. We had some initial encouragement from this Government. The experimental pipeline which everyone thought was such a good idea is half-built. It ends on the beach, so now we have a deliberately created mechanism built to avoid putting coal spoil on the beach, and as a result of its construction the spoil is now being dumped on the beach. I make a special appeal to the Minister. I hope that he will convey to the Department concerned the fact that we are talking about a very small amount of money necessary to extend the pipeline 500 yards out to sea. We could discuss the traumatic effect of the cuts in public expenditure. We could discuss the Black report, which consistently this Government choose to ignore. Durham county is one of four areas recommended for special treatment. That treatment means that it ought to receive greatly increased resources. The Government have chosen deliberately to ignore that, despite many pleas in the House. There are many other aspects of life in county Durham to which we could devote the whole of this Second Reading debate. But I say that deprivation in the Northern region is shown in the highest levels of long-term unemployment, low incomes, poor employment prospects, poor health standards and the highest welfare benefits in the United Kingdom. All those regional ills are well-documented, and they apply in equal measure and with equal force to the county parts of which I have the honour to represent in the House. For this Government, the county of Durham is the forgotten man. It has no place in their thinking or planning. The compassion needed to help our people is absent from their make-up. My hon. Friends and I plead yet again with the Government to carry out a complete reappraisal of their policies, both national and regional, which have brought our area to such a low ebb.10.27 pm
The House owes a debt of gratitude to my hon. Friend the Member for Bishop Auckland (Mr. Foster) for giving us the opportunity to discuss employment in county Durham. Perhaps it also owes a debt of gratitude to my hon. Friend's luck in the ballot, since it enables us to debate the matter at a relatively reasonable hour. As my hon. Friend and my hon. Friend the Member for Easington (Mr. Dormand) pointed out, this is a county with very serious problems and one well worthy of the attention of the House.
I intend to concentrate my remarks on the north-west area of the county—the area of the county covered by the district of Derwentside. It is an area larger than my constituency, although it is affected very much by developments in employment in my constituency because that is where the greatest concentration of population in the district is to be found and where there used to be—I choose my words carefully—the largest provision of employment. As my hon. Friend the Member for Bishop Auckland said, with a 16 per cent. unemployment rate, the county has the fifth highest unemployment rate of all the counties of England. But in the Derwentside area, where the official unemployment rate is more than 25 per cent., there is the highest unemployment rate in mainland Great Britain. Between 1977 and 1981, 18,000 jobs in manufacturing industry were lost in county Durham, which was nearly one in four of the jobs in manufacturing industry which previously had existed in the county. No fewer than 8,000 of those jobs lost were in the Derwentside area, and they amounted to two-thirds of the total number of manufacturing jobs in that area. Most of them—75 per cent. or more—have been lost since the general election in 1979. That year is a watershed in the history of the north-west part of the county of Durham. Everyone has heard of the closure of the steelworks at Consett, with the loss of 3,700 jobs. As I have said before, those jobs were lost although the works had become viable and profitable. No satisfactory explanation has ever been given for the closure and no satisfactory response has been made to the case against that closure. The loss of those jobs and the closure of the steelworks is only part of the story. In my constituency many more jobs have been lost and they were by no means dependent on the existence of the steelworks at Consett. My constituency is in Derwentside district and has two main towns, Consett and Stanley. Stanley's population is larger than that of Consett, and there are a number of outlying villages in the area. Of all those unemployed in my constituency, about half are not former steel workers. They were put out of work not as a result of the closure of the steelworks at Consett but largely as a result of events in the past two and a half years. The whole area has been a special development area since such areas were introduced by the Labour Government in the late 1960s. As has been said, it was given that status because of the rundown of the coal industry. Indeed, such industry has disappeared from my constituency. A quarter of a century or two decades ago, there were 15,000 mining jobs in my constituency, but they have all gone. As a result, the area was given special development status on the introduction of such areas. A particularly serious factor is that many of the firms that came into the area with regional development grants as a result of the special development area status have either closed or experienced massive redundancies in the past two or two and a half years. Ransome Hoffman Pollard, a ball and roller bearing manufacturer, had an establishment near Stanley that was closed at short notice and 1,250 people were made redundant. The factory had been a pioneering effort in regional development and was the first development, in the 1950s, to try to provide alternative employment to deal with the rundown of the coal industry. At short notice earlier in the year, it closed. The work force accepted the closure. I had some regrets that it did that so readily, but that was its decision. Within 48 hours of the closure being accepted, the company announced that it had made record profits in the previous financial year. At this very moment, the company is seeking to recruit its former workers in the Stanley area to work in its plant at Newark. Not surprisingly, my constituents are intensely angry, and I share that feeling. What a cynical example that is of the manipulation of people in the interests of profit. Having dealt with the rather negative aspects, I pay tribute to those trying to do something positive in a devastating situation. I pay special tribute to the Derwentside strategy team, which is composed of the BSC (Industry), a wholly owned subsidiary, the British Steel Corporation, whose job it is to try to create new employment in areas where there are massive steel closures, and officers of the county and district councils. It has other co-opted representatives. That team is not just a talking shop; it makes tremendous efforts to bring new industries into the devastated area and is comprised of people who do not simply talk about the problems but travel throughout the country and internationally attempting to attract jobs to the area. In doing that, it is assisted by a package of support measures for the inducement of companies to establish or expand themselves in the area which, beyond doubt, is the best in Western Europe. At least we have put the problems of Consett and its area on to the conscience of the Government in seeking to provide back-up measures to deal with the massive unemployment. In the teeth of the most appalling difficulties, the strategy team has created about 700 jobs during 1981, and I pay warm tribute to the fantastic efforts it has made in doing that. It seems likely that it will create another 700, perhaps more, jobs during 1982. However, the magniturde of the problem can be gauged from the fact that the area needs 10,000 jobs to bring unemployment down to anything like an acceptable level. On 22 June the Minister of State, Department of Employment—then gainfully or otherwise employed in the Department of Industry—told me that there were 3,000 potential new jobs in my constituency. It will be interesting to hear from the Minister who is to reply to the debate how many of the 3,000 jobs have materialised. I have been directly involved with many of the efforts to bring jobs to the area and, from that experience, I know that there is a common thread running through the efforts to establish new centres of employment in the area. That thread is the difficulties that firms face when raising capital from private sources. That problem comes up again and again. Firms that are anxious and willing to provide jobs in areas such as Consett and Stanley invariably run up against the difficulty of raising capital from private sources. I am not in the least surprised that a recent report states that British banks and financial institutions have the worst record in the world in their attitude towards manufacturing industry. The trouble is that they are more interested in investing abroad than in Britain. The Government's abolition of exchange controls has encouraged them in that attitude and has created investment difficulties in areas such as county Durham where investment is desperately needed. All the firms interested in coming to the Derwentside area have said to me, to the strategy team and to all concerned that they are mainly interested in what money is available from public sources because it is not available from conventional private sources. That makes the Socialist case for the need for public intervention to create employment in areas of desperate need. The problem of creating jobs in the Consett and Stanley areas is so great that it will never be solved by a conventional capitalist approach. The problems are so great—my view is shared by those who are involved in industry and job creation—that we need a major development in the co-operatively owned sector in the Derwentside area. Earlier this year, against that background and with the support of BSC (Industry), the Derwentside district council and the Co-operative Bank, I launched what was called the Derwentside Self-Help Group. The Co-operative Bank Ltd. was selected for involvement because of its known interest in the development and because it is the only bank in Britain that does not react with automatic hostility to ideas on the cooperative ownership of industry. The central idea was that the bank would provide support capital for the development in the area of a sector of common ownership enterprises, as defined in my private Member's Bill which became the Industrial Common Ownership Act 1976. There is a problem with the banking laws and I understand why it exists. A bank cannot set aside capital for such a venture. It is required under banking law to spread its assets and investors' moneys and savings in a wide variety of ventures. Discussions with the Cooperative Bank and others have revealed that it will be necessary to create a credit union if we are to overcome the problem, a union which will be designed specifically to raise capital to be invested in co-operative style ventures in an area such as Derwentside. The creation of a credit union has proved difficult, and I shall not gloss over the problems. I regret that the self-help group has not yet got going because of banking legislation. I assure the House that it is something that we continue to work upon. My hon. Friends the Members for Bishop Auckland and Easington have said that the development of small firms, both co-operatively and conventionally owned, is a key factor in creating jobs in development areas and in all other areas. We hear a great deal from the Government about the importance of the development of small firms. No one would seek to deny the importance of that. Yet small firms have many difficulties that are exacerbated rather than relieved by the Government's policy, especially in the raising of money, and I have referred to that in general terms. It arises because of the punitively high interest rates and the restriction of the money supply, which is central to the Government's philosophy and their approach to Britain's problems. In counties such as Durham the introduction of new industries is of paramount importance to the county council and to all the district councils that are situated in the county. I pay tribute to the efforts of the local authorities in this direction. They make every effort to make the area attractive and to help actively in creating employment. Company after company with which I have had contact has paid tribute to the helpful approach of the local authorities within the county. Yet those same authorities are gravely hampered in this fundamental work by the Government's restrictive policies. Derwentside district council offers a rate-free period of two years to new industrial establishments as part of the subsidisation of firms that come into the area in order to create jobs. Despite all the provocations, it has deliberately tried to avoid confrontation with the Government. Yet because of the Government's policies of financial restriction and centralised dictatorship over local authorities, Derwentside council is faced with expenditure limits that will probably force it to stop its efforts to support industrial development and to create an environment generally conducive to attracting new industries to the area. That is the absolute statement of the fact within the expenditure limits that have been devised for the council under the present arrangements. Overall, almost every Government-created factor militates against the employment requirements of the area. The fact that some new employment has been created is a remarkable tribute to the resilience and endeavours of local people. It has created despite, and not because of, the Government's policies. I conclude with three brief points. There should be a stronger local dimension in Government policy attuned specifically to local requirements. EEC funds—there are EEC funds available in the area because of steel closures, but there are also wider EEC funds available—should be more thoroughly diverted to increase regional support instead of still going largely into a Government pool. Those funds are lost instead of being concentrated in the way that they should be. Thirdly, capital expenditure by local authorities on industrial sites and in all ways that try to improve the infrastructure for attracting industry and creating employment should not be subjected to severe restraints, which is an immensely inhibiting and damaging factor in areas such as the county of Durham. Unemployment problems and the other problems of Durham, many of which spring from the massive unemployment in the area, will be resolved only with the help of radical changes in Government policy.10.47 pm
I, too, wish to congratulate my hon. Friend the Member for Bishop Auckland (Mr. Foster) on having been successful in the ballot for the debate and on his good fortune in having been drawn at a fairly early hour.
My parliamentary colleagues representing Durham county constituencies have portrayed fully to the House the difficult and somewhat intangible problems with which the people of Durham are faced. It is a sad fact that Durham is one of three counties in the Northern region that are included in the top five of British counties with the highest recorded unemployment. My constituency is divided between the old shire county of Durham and the new metropolitan county of Tyne and Wear. In common with my colleagues, I shall try to focus the attention of the House equally sharply upon the difficult problems with which we are confronted. My hon. Friends have tried to point out the disparates that have been revealed since the Government took office in May 1979. They have objectively but unspectacularly called attention to the continuing job losses in the county of Durham and the Northern region as a whole. We are living in a period of international, as well as national, economic decline, but the decline is felt more sharply in the old industrial areas of Durham than perhaps in any other part of the country. As the loss of jobs continues, the lifeblood of the county drains away all too rapidly. De-industrialisation is proceeding at an ever-increasing and alarming pace. In company with one or two of my parliamentary colleagues, I responded to an invitation from the North of England County Councils Association to attend a meeting in London organised by the five counties to launch a third report on the Northern region which sets out many of the problems. In the past year 46,600 jobs were lost in the region, which almost cancelled out the 50,000 jobs estimated to be generated by regional policy between 1963 and 1973. The report points out that the regional share of the national production of goods and services has sharply declined over the past two or three years, in company with a substantial fall in industrial investment. The regional position—which is by no means unimportant in the national economy—is deteriorating. My hon. Friends the Members for Easington (Mr. Dormand) and for Bishop Auckland drew attention to the generation of jobs by the new towns, but that job stimulation has been seriously retarded by public expenditure cuts. It is vitally important to have new job agencies if all too soon the responsibilities of the new town authorities, which have done a wonderful job, are absorbed by the local authorities. We have seen a massive decline in manufacturing industry, and I do not need to expand on the remarks of my hon. Friend the Member for Consett (Mr. Watkins) about the death blow to Durham county industry from the closure of the steelworks. The NECCA report applies not only to the county of Durham. The five county councils—Durham, Northumberland, Tyne and Wear, Cleveland, and Cumbria—felt compelled to join together to draw attention to the problems with which the region is all to familiar. I trust that the House will forgive me if I broaden the debate a little to deal with aspects of the situation which are almost equally applicable to the other four counties. The report mentions economic infrastructure, to which my hon. Friends made several references. I suggest to the Government that the time is well overdue for the substantial sums of money that are now flowing into this country for infrastructural development from the EEC to be matched equally by the Government rather than absorbed by them and, therefore, not serving the full purpose for which the grants were intended. In the Northern region, we have a useful and efficient system of communications, dating back to 1963, when the then right hon. Member for St. Marylebone produced a plan to improve the communications system. Everything is there and ready for a spur to be given to industrial development, but, sadly, since the Government took office, instead of increasing investment in industry, creating more jobs and matching the improvement in communications, they have done the reverse, and we are undergoing an enormous decline. The report refers to the decline in the number of houses being built and an increase in the number of construction workers drawing unemployment benefit. My hon. Friends referred to the Black report and said that out of 10 deprivation areas listed, four are in the Northern region. Perinatal mortality in the Northern region is 11 per cent. higher than the national average. There are 5 per cent. fewer general practitioners per 100,000 population an the Northern region than in any other region. Yet the Government choose to bury their heads in the sand and insist on taking no action on the report with regard to allocation of resources. Average household weekly incomes are nearly 10 per cent. below the national average. We have a low-wage economy, even though in my constituency, as in that of my hon. Friend the Member for Easington, the coal mining industry is predominant in job provision and employment. On welfare benefits, we have the unenviable record of being at the top of the league with the highest level per head in the United Kingdom. Those levels are especially high in the heavily industrialised areas, with benefits being paid for injury, disablement, sickness, invalidity and unemployment. Unemployment in the county of Durham and in the Northern region as a whole is by far the worst scourge. Redundancy—that dreaded word—is catching up with ever-increasing numbers of people who are presently in work. The shadow of the dole queue looms with ever-increasing closeness on more and more people who are presently enjoying weekly wage packets. At present, the labour market is essentially a buyer's market. Over a quarter of the region's unemployed have been out of work for more than 12 months. That clearly indicates that the region has the most serious long-term unemployment problem in Britain. The number of vacancies is pitifully small, declining even now in number in relation to the number of people who are desperately seeking employment. Nowhere is the problem more serious than in youth unemployment. There are many youngsters who have just left school and many who left school two or three years ago who have not yet found a job, and there is little prospect of their getting a job. There are all too few apprenticeships. Youngsters experienced first the bewilderment of not being able to find employment. That was followed by frustration, bitterness, misery, anger, humiliation and, worst of all, indignity. I faced the same problem when I left school in 1926. Fifty-five years ago, I suffered in the same way when I was a boy of 14, desperately searching every avenue to find a job. I was bent on doing a particular job but was unable to find an opportunity for employment in that area. Luckily, the prospect of a job in the coal industry came along. I know what the young people feel. Those of us who were born in adversity and who have lived in it throughout our lives understand the meaning of unemployment. Fortunately, in my young days we did not indulge in riotous behaviour, as has happened, unhappily, in one or two places in the United Kingdom in recent months, but there was always something there under the surface, in those days of mass unemployment, which threatened to break through at any time. No one can condone what happened in Britain a few weeks ago, but we must always be aware of the possibility that people will be driven to desperation. We need a strong, vigorous and determined regional policy to help us overcome these problems. My hon. Friend the Member for Bishop Auckland asked some pertinent questions as to the Government's attitude to regional policy. We have seen an erosion of many of the items that were included in regional policy before the Conservative Government came to office, but it is not my intention to rehearse all the matters to which my hon. Friends have referred. Our objective in regional policy in the county of Durham and in the Northern region is that one day in the foreseeable future we shall reach the same economic plateau as the more prosperous regions of Britain. We can still afford to say that, even in these days of increasing unemployment in the areas where the seed corn of British industry exists, including particularly the West Midlands, I commend the NECCA report, to which I have already referred, to the Government. I urge upon them the importance of reading the reports which have come from the Northern region. If it is not the Government's intention to improve regional policy to the level which Labour Members think is essential, I implore the Government at least to read the last paragraph of the report, which was presented to Government in November of this year. There is a possibility that something can be done to ease the problem of the Northern region if we only pay attention to what is written here. The report, in dealing with public expenditure, states:My hon. Friend the Member for Easington referred to the withdrawal of the strategic plan for the Northern region, despite the lukewarm support that appeared to be coming from the Government in the early stages of their term of office. I recall the 1965 report from Northern Regional Economic Planning Council entitled "The Challenge of the changing North". Much of what was contained in that report is just as relevant today as it was in 1965. The face of the North is changing rapidly, even now, and it is presenting an even more formidable challenge than it did in 1965. The Minister should convey to all Secretaries of State of the spending Departments, and especially to the Prime Minister, the vital importance of devising a national economic plan, in which regional policies, especially those applicable to development areas, would play a full part. It occurs to some of us that the voters in the Northern region might have created a situation for themselves which is very difficult to justify. In so far as their support for Labour Members is concerned, they might have done themselves serious harm, because of the knowledge on the part of the Government that no matter what they might do to help to create the economic stability that we require, it would not be to the advantage of the present Government. Those massive Labour majorities must, to some extent, be a deterrent to the Minister and his colleagues. As we still have the distinctly unenviable record of the highest level of unemployment in the United Kingdom except for that of Northern Ireland, perhaps in the not-too-distant future we can expect, in advance of the declaration of a strong and vigorous regional policy, the establishment of a development agency for the Northern region. At least that would give us equality with Scotland and Wales."There is no sign of the inclusion of a planned regional dimension in the national public expenditure planning process except in Scotland, Wales and Northern Ireland. The overall expenditure differential in favour of the North emerges incidentally from the application of national policies to the region. The result of this insensitivity to the region's problems is that the direction of its public expenditure is the opposite of its real need."
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I congratulate the hon. Member for Bishop Auckland (Mr. Foster) on having the good fortune to secure this debate—and, as has been said, at a reasonable hour. I congratulate the hon. Members for Easington (Mr. Dormand) and Consett (Mr. Watkins) and their right hon. Friend the Member for Houghton-le-Spring (Mr. Urwin) on having also caught your eye, Mr. Speaker, and contributed to this sombre but important debate on the economy and employment situation of County Durham.
The hon. Member for Bishop Auckland quoted to me the answer given by my hon. Friend the Under-Secretary of State for Employment. I hope that the hon. Gentleman will not take it amiss or regard it as unduly partisan if I begin by quoting to him and his right hon. and hon. Friends a sentence which appeared in the Labour Party manifesto at the general election. I do not quote it because it is bad; I quote it because it is rather good. It says:The hon. Member for Consett made trenchant remarks about money supply policy. I ask him to note the fact that the Labour manifesto highlighted the importance of the control of the supply of money. I quote that passage only to point out to the hon. Member for Bishop Auckland that the Labour manifesto blamed on the Conservative Government the 27 per cent. high point of inflation reached under the Chancellorship of the right hon. Member for Leeds, East (Mr. Healey). He will therefore not regard it as unduly partisan if I blame the rise in inflation upon the Labour Government as a result of the very large number of Clegg settlements that we inherited."We must keep a curb on inflation and prices. Inflation is our enemy because rising prices hit most hard at the pensioner, the low paid and the housewife, and inflation causes loss of jobs. Labour has brought inflation down from the alarming level caused by the Conservatives' failure to control the supply of money."
I take the Minister's point about that inclusion in the Labour Party manifesto, but it was just one of a package of necessary measures, not the be-all and end-all of everything which my right hon. Friend the Member for Leeds, East (Mr. Healey) described as "punk monetarism" and which is a major cause of the present trouble.
That may not have been the only factor in the manifesto. In the early part of his speech, the hon. Member for Bishop Auckland launched into a more general appraisal of economic policy. I hope that I shall not bore him if I pursue some of those rather more general questions before coming to the details of the local problem, as I believe that they are relevant to it.
The hon. Member spoke of public expenditure, which I assume is another component of what Labour Members would regard as a rational policy. Following the point in the Labour Party manifesto to which I have referred, nobody now really believes that public expenditure can be financed by an inflationary increase in the money supply, by financing public spending by borrowing from the banks and increasing the credit base of the economy. Nowadays, public expenditure has to be financed either by genuine borrowing from the non-bank public or by taxation. As I am sure the hon. Gentleman appreciates, much as one would like to spend more public funds on many desirable projects, one must always consider where the money is to come from—who will be disadvantaged by the higher taxes or what will be the effect on the interest rate if one borrows in order to spend more. It is not necessarily an easy option. Indeed, one is brought back to that familiar quotation from a former Labour Prime Minister which I suppose must by now be written on tablets of stone for everyone in the House. Nevertheless, I put it on record once again because it is relevant. In his Labour Party conference speech of 28 September 1976, the then Labour Prime Minister said:"We used to think that you could just spend your way out of a recession by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and that in so far as it ever did exist, it worked by injecting inflation into the economy. And each time that happened, the average level of unemployment has risen. Higher inflation followed by higher unemployment. That is the history of the last twenty years."
Does the Minister agree that, although the present Government set out to cut public expenditure they have signally failed to do so? Does he accept that public expenditure is now a higher percentage of the gross domestic product than it was when the Conservatives came to power? Does he admit that, although they attempted to cut public expenditure, all that they have done is to divert it into funding unemployment? Does he agree that we are absolutely right to say that they should now divert it back and get people back to work?
I hope that the hon. Gentleman, having criticised us for apparently spending too much or allowed public expenditure to increase too rapidly according to his book, is not arguing that we should increase it still further. He says that it may be possible to switch public expenditure into other directions. Again, I remind him of the record that seems to have emerged quite clearly, at any rate from the past 10 years.
I should like to repeat to the House figures set out by some academics in a recent letter to The Times. They showed how expenditure, both domestic expenditure of the economy as a whole and public expenditure. had moved in the decade from 1969 to 1979. Of the total domestic expenditure, which increased by more than 300 per cent. at current prices—and public expenditure increases were on the same scale—only 7·6 per cent. went into real output. The whole of the rest went into increases in prices. During that decade, there was nothing like the present volume of public expenditure concentrated on unemployment benefit—it was focused much more on the sort of project that the hon. Member for Bishop Auckland is asking for—but the overwhelming bulk went not into increases in real output, which means real jobs, but into price increases. There is no easy solution that way, and the hon. Gentleman and his right hon. and hon. Friends have not set out a convincing alternative proposition. Certainly, the reflation plea of the hon. Member for Bishop Auckland falls on increasingly deaf ears. I remind the House of the interesting project by The Times which recently used a simulation on the Treasury computer model of the economy of a £4 billion reflation—£2 billion in tax cuts and £2 billion on rises in public sector investment. The indication was that unemployment would fall by only 130,000 throughout the United Kingdom economy and inflation would accelerate rapidly. We would end up in a worse position. I have fought general elections since 1964. The first was fought on an unemployment level, which was thought scandalous at the time—it seems almost incredible today—of less than 300,000. In the 1970 election, unemployment had risen to 500,000. At my third general election in 1974 the figure was 750,000 and at the time of the last election it was nearly 1½ million. So it goes on up, inexorably with the rate of inflation.What will be the rate at the next election?
That remains to be seen, but I hope that it will not be on the same upward projection. I make those general points in response to the introductory general remarks of the hon. Member for Bishop Auckland.
I shall keep a copy of my right hon. Friend's speech, because what he says is true of the general elections that I have fought. What was the reason for the progression from 300,000 to 1½ million over the years? What was the main cause?
My interpretation is that the cause was the accelerating and progressive rise in the rate of inflation. An old economic wag once suggested that a little bit of inflation is like a little bit of pregnancy: it grows and one can never get rid of it except by aborting it. All the step-by-step rises in unemployment were paralleled by proportionate increases in the rate of inflation. It was not the rise in unemployment that caused the rise in inflation. I am not sure that the correlation between a rise in inflation and a rise in unemployment can be proved absolutely. However, it certainly cannot be proved that unemployment causes inflation. It is the inflation that causes unemployment.
Will the Minister bear in mind that between 1963 and 1973, and, indeed, beyond 1973, the percentage rate of inflation in the Northern region was rising at a slower rate than the national average rate of increase in unemployment? This must contain a lesson. We were able to convince ourselves in the 1960s that the onset of unemployment was retarded by the incentive and disincentive of industrial policy. The incentive took the form of substantial grants in aid to industry. The disincentive to development in other regions was the industrial development certificate policy.
Although the slower rate of increase in inflation in the Northern region should, in theory, have had a beneficial effect on the level of unemployment, it is part of the underlying problem with which the Government are grappling that there has been a decline in industries that were the glory of the North and the foundation of the prosperity of the nation. The great days of the Industrial Revolution and the demand for its products have passed. This negative factor has offset the advantages to the region of a lower rate of rise in local prices.
I share the anxieties that have been expressed about contemporary levels of unemployment in county Durham. I am aware of the serious effect of the closure of BSC's Consett works of which the hon. Member for Consett has provided a vivid reminder. I do not underestimate the difficulties that unemployment brings to individuals and the problems it causes for their families. All hon. Members will have been moved by the description of the right hon. Member for Houghton-le-Spring over the long period during which it has continued and its malignant effects. The Government have never sought to disguise the severity of the unemployment situation. We have never made any secret of the fact that we thought that it would have to get worse before it got better, but I hope that the downturn is in sight.In time for the general election?
There are probably two and a half years to go before the election.
At the human level, it requires little imagination to grasp the personal catastrophe that unemployment spells for an individual especially in areas such as county Durham where traditional industries have led working people to get together in fairly large groups. These are closely knit societies both at work and at home. The psychological impact and the isolation felt by a person declared redundant are probably worse than the material effect of the loss of remuneration from paid work. It is not a condition that can be regarded as anything other than personally catastrophic.I accept what the Minister says about the structural difficulties of the Northern region and the traditional dependence on heavy industries. However, cannot he recognise the point made by my hon. Friend the Member for Consett (Mr. Watkins)—my home town—that the job losses have occurred not simply in traditional industries but in new firms that were welcomed into the area? It was thought that these firms would breathe new life into the area. They have disappeared under the savage wind of the recession from which they have not been sheltered by the Government.
The hon. Gentleman talks about the recession. The right hon. Member for Houghton-le-Spring was fair when he said that there was a world dimension to the recession. It is no use overlooking the fact that every other country in the Western world has the problem of rising unemployment. We all had to accept and adapt to the massive energy price rises in 1973 and 1979, as the basis of the world recession. We are almost too close to the change in the structure of world oil prices to realise how gigantic and fundamental was the effect on the free world. The 2,000 per cent. increase in the price of oil since 1973 and a tripling of the price since 1979 alone are a measure of the typhoon, in economic terms, blowing in the world, which affected even the fresh young industries in county Durham. Incidentally, I am not sure that we have not brought part of what we have suffered on ourselves.
I am sure that all hon. Members would agree that the recession has affected unemployment in every other industrialised nation. Nevertheless, can the Minister tell us which other Western European nation has experienced a doubling of unemployment in the past two and a half years? That is without parallel. If he relies on the argument that the increase in oil prices is to blame for the increase in unemployment, will he tell us which other oil-producing nation has produced a doubling of unemployment?
May I say that the hon. Member for Edinburgh, Central (Mr. Cook), though a late arrival to the debate, is always welcome. I shall make some comparisons in international terms, which I hope will illuminate the problem and perhaps explain the phenomenon to which he alluded. The difference between our country and other countries in Europe and elsewhere in coming to terms with and combating and overcoming the effect of the rise in world oil prices lies in the way in which they have managed to grapple with the problem of producing, in a declining world market and with increasing competition, the right goods to sell in the world at the right prices.
It is instructive, if unpalatable, to compare the increase in manufacturing industries' unit labour costs over the five years, from 1975 to 1980. This comes just two years after the threshold of the big increase in world oil prices. In the period 1975–80, the United Kingdom's unit labour costs virtually doubled, while those of our major competitors increased by much less—in Canada by less than half, in America by one-third, in Germany by less than one-fifth, and in Japan literally not at all. This is why they have managed to weather the storm of an increase in world oil prices, while our unemployment has doubled. It is because we doubled the unit labour cost during the same period.Does the right hon. Gentleman agree that that is not the only reason? He will recall that I said in my speech that we lost 40 per cent. of our competitiveness during the first two years of his Administration. is it not on public record that at least 40 per cent. of that loss was due to the high exchange rate, which was due to the over-tight financial targets that were set by his Government? Does the hon. Gentleman agree that the Government bear a great measure of responsibility in these matters? It cannot all be levelled at the international recession. No other country in Western Europe has had the increase in unemployment that we are considering. No other country in Western Europe has lost one-fifth of its output in manufacturing industry. Will the hon. Gentleman address himself to those problems?
I shall do my best, in response to the hon. Gentleman, I understand what the hon. Gentleman said in his main remarks, and I am bound to say that I am an agnostic about the right or proper level of our exchange rate—what is too high or what is too low. Whichever way we have it, we get advantages and disadvantages. If sterling is too strong, relatively our prices may seem expensive overseas, but a lot of the essential goods that we have to import, for example, to improve productivity in manufacturing industry are very much cheaper to import. So there is no self-evident case for a specific exchange rate level as being the ideal for the United Kingdom, and I do not believe that it is a serious factor.
I end on a more cheerful note about productivity. In the first half of 1981, increases in productivity offset the rise in earnings, so that unit wage costs were unchanged in the first half of this year from the end of 1980, which is a dramatic improvement in our performance and, I believe, in our prospects. There are some other hopeful signs. Manufacturing output was up 1½ per cent. in the third quarter of this year, and productivity is up 5 per cent. since the end of 1980. Despite the upward trend at the beginning, inflation has fallen by nearly half since the spring of 1980. This is a fundamental improvement in prospects for the economy. Labour unit costs have stabilised, and we have gained substantial contracts in overseas markets. Even in county Durham, the picture is not all doom and gloom. Expansions are taking place, new projects are being set up, new jobs are being created—though not at as fast a rate as we would have liked. Perhaps I might mention just one or two examples. Fisher Price's multi-million pound investment in its factory at Peterlee—the largest single investment made by Fisher Price in its 50 years history—should create 400 jobs by 1984. Another 150 new jobs are being created at Ogden Electronics of Bowburn, 120 at GEKA Brush of Stanley, 100 at CODE Design of Consett, and between 30 and 100 at Henry Workman in Tanfield Lea. These are just some of the expansions which are taking place in the area. I gather that Derwentside district council recently received an allocation of £100,000 from the European social fund for a wage subsidy scheme to encourage the provision of new jobs for unemployed people. The council hopes this will help towards the creation of 250 new jobs by July next year.
We appreciate and welcome these new jobs being created, and most of those mentioned by the hon. Gentleman are in the Derwentside area and in my constituency, but measured against the magnitude of the problem, I remind the right hon. Gentleman that we need 10,000 jobs to produce even what might be described as an acceptable level of unemployment.
Let us hope that great things will from small beginnings flow. There is every reason to hope that, because of the underlying improvements that I have described, we shall find growth on the scale that we all want.
The story is not all about redundancies and job losses, athough I should be the first to admit that county Durham has seen more than its fair share of them. There are jobs to be had in the area, even in the present difficult circumstances. In fact, over the 11 months between December last year and November this year over 18,000 people in county Durham were placed in new jobs by the Manpower Services Commission's employment service, so the overall picture is on the scale of thousands. Many more people will have found new jobs for themselves, not through the MSC. I turn to the question of assistance for the county or the development area basis. I am a Department of Emmployment Minister, and this is a debate on employment, and I cannot be certain of giving an accurate account of the work of the Department of Industry. A debate that would have taken place on that subject later tonight has been cancelled. However, I shall do my best to fill in some of the gaps. The hon. Minister for Bishop Auckland said that county Durham had been completely abandoned by the Government. I hope that he will note what has been done in maintaining county Durham's assisted area status. I should like to start with a report on the assistance that the Government have provided in recent months and years. Since we came into office an estimated £26 million has been paid in regional development grant. Offers under section 7 of the Industry Act 1972 totalling £25 million in assistance have been made to industry in the county. When it is taken up, this assistance will have contributed towards creating about 7,000 new jobs and the safeguarding of a further 2,700 jobs. In addition, other offers worth about £300,000 have been made under section 8 of the Act to support investment in the county. We have also approved about 170 new factory units. I do not believe that that is a record that justifies the stricture of our having completely abandoned the county. The hon. Member for Easington talked about the county being a forgotten land. The hon. Gentleman referred to the winding up of the new towns in county Durham, and mentioned his Adjournment debate on the matter, which was held in November. In June 1980 my hon. Friend the Minister for Housing and Construction announced a target date of 31 December 1985 for the winding up of Aycliffe and Peterlee development corporations. I believe that the date envisaged by the Labour Government was the early 1980s, but no specific date had been set. I also believe that the Labour Government had set a target date of 31 December 1982 for the winding up of Washington development corporation. The present Government postponed that to 31 December 1985, in order to coincide with the other two. I assure the hon. Gentleman that the current target dates were arrived at precisely because of the state of the region's economy and the new towns' success as growth points. Ministers in the relevant Departments have stressed that the question of the corporations' dissolution date will be considered again nearer the time, before final decisions are taken. Target dates are not immutable, as has been shown by the postponement of the Washington date.It is clear that the Minister will ignore the very important point that I made in the Adjournment debate to which he referred. The announcement of the date that he mentioned, which is fairly close now, is destroying the morale of the staff. I said that for example, eight specialist vacancies had already occurred within 12 months. People are looking for other jobs. The team there is young, and it is proper that its members should be thinking about what they will do in the future. All that we are saying is "Give us another few years." I hope that the Minister will not deny that the job need in the areas concerned will continue long after 1985.
I take note of what the hon. Gentleman has said, but he will have noted that I said that these dates were not immutable and that we shall have to reflect further on that.
The hon. Gentleman also made some points about the coal industry which my hon. Friend the-Under-Secretary of State for Energy heard. He has advised me that he will write to the hon. Gentleman about them. It is a sombre situation. Nevertheless, as I hope I have shown by recalling the Government's record on assistance to Durham as an assisted area, we have spent a substantial sum of money there to try to help. We have introduced a number of special employment measures. The young workers' scheme is perhaps the most encouraging. We believe that it will be taken up by between 50,000 and 100,000 employers throughout the country and will lead to many young people getting new jobs. The new training initiative has every prospect of reviving the programme of training for young people and of drawing many more into training. Overall, despite the fact that the figures are sombre and depressing, we have done a great deal——The Government have done nothing.
—for the economy of county Durham. I am not sure whether the hon. Member for Easington is nodding in agreement with me or with his hon. Friend the Member for West Stirlingshire (Mr. Canavan), but he knows that a large amount of money has been put into county Durham. We shall do everything that we can to accelerate the attack on the underlying problems in the economy, especially inflation, and that, I am sure, will lead to an increase in job prospects.
Plutonium (Exchange Agreement)
11.41 pm
It is, perhaps, a sign of our times that we turn from a debate on the decay of the economy of the Western world to a debate that touches on the expansion or acceleration of the arms race within the Western world.
I am grateful for this opportunity to raise a matter of acute importance that has not had the kind of discussion in the House that I feel it merits since it became a matter of speculation in the press two months ago. I am particularly grateful for the fact that the Minister has attended the debate tonight, in circumstances which I understand are far from ideal for him, because it has required some effort on his part to be present to respond to the debate. The matter that I raise relates to the exchange agreement with the United States of America for the supply of plutonium. It might help if I indicate at the outset that two exchange agreements are involved, under which we supply plutonium to the United States. The first is a military agreement, which has been in operation since 1959 and under the terms of which we have shipped plutonium to the United States and received in return enriched uranium and tritium. The original agreement was for 10 years, but it was renewed in 1969. There is a certain irony in that date, because while we were negotiating an extension of the agreement for the exchange of fissile material we were also negotiating a non-proliferation treaty to prevent other countries from trading between themselves in such fissile material. Until recently it was thought that that agreement lapsed in December 1979, at the end of the 10 years from 1969, but it has now emerged that it was prolonged, presumably as a result of the Prime Minister's visit to President Carter in that month, until 1984. I am surprised that that agreement has been renewed, since we now have on stream our own facility for providing tritium for our weapons production at Chapelcross in Scotland. Indeed, I objected to that investment when it was proposed in 1975. I remember that when it was mooted in 1975 we were told that the sole reason for building the tritium plant at Chapelcross was that it would be cheaper to provide our own stock of that material than to continue to import it from America and that it would save foreign exchange. We now know that, whatever else it may do, the tritium plant at Chapelcross cannot save foreign exchange, because no foreign exchange was involved in the agreement. It was a straight barter agreement. However, we were assured that to do it in that way would be cheaper than to import tritium from the United States. If so, I cannot understand why, when we have a tritium plant at Chapelcross—which cost £7 million and was supposed to supersede the agreement which was then in force—the agreement has been renewed until 1984. I realise that the Under-Secretary of State for Energy will be unable to comment on matters that trench intimately on matters of defence policy. However, one question arises from the military exchange of plutonium, and the Minister could competently respond to it. If the plutonium exchanged under the military agreement came solely from Chapelcross or Calder Hall, whether it was used in the American weapons programme might be regarded as a matter of indifference. After all, plutonium produced at Chapelcross and Calder Hall was always intended for use in weapons—whether British or American—and therefore it might not be a matter of great principle whether it was shipped to our allies for use in their weapons rather than in British weapons. However, if plutonium had been taken from civil nuclear power stations, shipped to the United States of America and used for military purposes, an entirely different issue of principle would arise. Has any plutonium from civil power stations in Britain—those operated by the Central Electricity Generating Board rather than by British Nuclear Fuels Limited—been exchanged with the United States of America on the basis of the military exchange agreement? That brings me to the second agreement, to which I shall address the bulk of my remarks, and to which no doubt the Minister will address the bulk of his reply. The other agreement relates to the exchange of plutonium for civil, rather than military purposes. I understand that the basis of the agreements was laid in 1954 and that upon occasion we have sent plutonium to the United States of America since then for civil purposes. I understand that the amount of plutonium supplied to the United States of America for civil purposes has been comparatively small. However, I raise this matter because I gather from the press that we hover on the brink of a quantum leap in the amount of plutonium supplied to the United States of America for civil purposes. The substantial increase in the quantities of plutonium supplied by us coincides with the major expansion in the demand for plutonium in the United States of America, which in turn has two causes. First, the expansion results from the incoming Administration's decision to embark on the Clinch River fast breeder project, which requires substantial stocks of plutonium to start up the reactor. Secondly, the new weapons programme that the Administration have embarked on envisages the creation of an additional 14,000 nuclear warheads by 1984. That is a considerable amount, which will require considerable amounts of plutonium. You will be aware, Mr. Deputy Speaker, that that weapons programme has caused acute controversy. Indeed, Mr. Deputy Speaker, you cannot fail to be aware of such a fact after having sat through so many debates. My position is well known in the House and I shall not labour it now. However, unilateralists do not have a monopoly of concern over President Reagan's weapons programme. There are many independent, objective analysts who are not unilateralists—both in Europe and in the United States of America—who have expressed grave concern and anxiety about the weapons drive. They have pointed out that it will not only heighten international tension but simultaneously diminish the prospect of arms control. That is particularly true because the Administration embarked on that weapons drive with the declared aim of achieving superiority. Such an objective might have been calculated to provoke the other side into joining a competitive arms race. I am deeply embarrassed by the possibility that plutonium provided by the British civil nuclear power programme might be contributing to that weapons drive. That contribution will remain real whether the plutonium that we send is used directly for one of the 14,000 nuclear warheads or merely used indirectly to start the Clinch River fast breeder, and thereby to free stocks of plutonium for the weapons programme that would otherwise have been used to start the fast breeder reactor. Whether our contribution is direct or indirect, it remains real and, without it, the Reagan Administration could not embark on the scale of weapons expansion that it now envisages. In effect, we are fuelling President Reagan's anus drive. If we are doing that from the plutonium produced in civil nuclear power stations, it raises some sensitive issues. Those delicate issues were adequately expressed by David Fishlock, the energy correspondent of the Financial Times, on 30 October when he wrote:If nuclear civil reactors are used to produce plutonium for that purpose, it raises many points of principle and I shall raise three separate questions which I wish to leave with the Minister and of which he has had advance notice. First, what price will be paid to the generating boards for the supply of plutonium? We are frequently advised by Dr. Marshall of the Atomic Energy Authority that the stocks of plutonium in Britain, for energy purposes, are of priceless value. Indeed, he is fond of stating that the stocks of plutonium exceed the energy potential of the entire coal stocks or the North Sea oil reserves. It is rather strange to discover that the generating boards are willing to contemplate the plutonium being shipped abroad. If they are voluntarily agreeing to that, presumably they are being paid a price commensurate with the rich energy potential of the same material. What price are they being paid and under what arrangements will the CEGB and, presumably, the South of Scotland Electricity Board, receive payment for the material? My second question relates to the image of the nuclear power industry within Britain. I have taken part over the past six years in the debate on the expansion of nuclear power in Britain and I have found, on occasions, that both the generating boards have been given to countering criticism of nuclear power on the ground that it might tend to nuclear proliferation, by creating a clean distinction between the use of nuclear technology for weapons purposes and for the production of energy. I admit that that has been, in the British context, a tenable position. However, if it emerges that we shall provide missile material which could facilitate—perhaps not directly—a nuclear weapons programme in the United States, it would be much more difficult for the generating boards to sustain that clean distinction. Effectively, the atoms produced in peace would become the atoms used as weapons of war or as substitutes for other nuclear plutonium isotopes freed for that purpose. If that is the case, it confirms the fears of many that one cannot create a clear distinction between the application of nuclear technology for military and peaceful purposes. I warn the Minister, in all fairness, that if such a deal goes through, it will be much more difficult to achieve popular support for the highly ambitious nuclear programme which the Government are proposing. It may be worth recalling that many people who work in the nuclear industry have prided themselves on the fact that they are making peaceful use of the technology that was originally developed for weapon purposes. For some of them, the discovery that the plutonium produced in reactors may end up facilitating a weapons programme has provoked a crisis of conscience. I particularly refer the Minister to a letter which appeared in The Times on 30 October, signed by Mr. Heskith who works at the Berkeley Nuclear Laboratories of the CEGB. I shall read the relevant part of the letter. It states:"In commercial terms, both deals can be very valuable to Britain, but both are fraught with diplomatic problems, for they could reforge ties between military and civil nuclear activities that international statesmen have been trying to separate since the early days of the nuclear industry."
"As a member of the civil nuclear energy programme of the United Kingdom I have for several years assured my critics that civil nuclear energy is distinct from military nuclear energy. I have assured them that Berkeley, Bradwell, Sizewell, Wylfa, have no connexion with the escalation of nuclear weapons … If at this juncture the United Kingdom were to sell plutonium to the Reagan Administration, I do not think that it could be rationally maintained that we, the United Kingdom, have distinguished civil use from military use."
I am glad that my hon. Friend has quoted that letter. My union, the Electrical Power Engineers' Association, has been for many years a firm supporter of the development of the nuclear power programme and is much concerned about what is happening in the matter to which my hon. Friend has referred, as is the electricity supply industry generally.
I am grateful to my hon. Friend for that confirmation that there is unease within the nuclear power industry over the proposal. I am aware that my hon. Friend has a long and consistent record on this issue. I know that in 1959 he intervened in a statement that was made by the then Paymaster General, Mr. Reginald Maudling, who announced that one of our civil nuclear power stations was to be modified to facilitate the production of military grade plutonium. My hon. Friend described that proposal as a surprise and a shock. I am well aware that my hon. Friend and many others in the industry have sought over a long period to create a distinction between civil and military applications of nuclear technology. They would feel a renewed sense of surprise and shock if the barrier were lightly to be abandoned.
Thirdly, I turn to the international debate on proliferation. The non-proliferation treaty is a flimsy barrier to stand between us and a potential Armageddon, but it is the best that we have and it behoves us all to show it up as best we can. The treaty sought to create barriers between the activities of the nuclear industry in the creation of civil power and its activities in the production of military weapons. If we enter into an agreement for the supply of plutonium to a nuclear weapon Power in which the source of the plutonium is ambivalent and the final destination is ambigious, we strike at the basis of the nonproliferation regime that is set up in the treaty. It will be much more difficult for us to encourage international acceptance and observation of the treaty if, while acting within the letter of the treaty we go clearly contrary to its spirit. There are other reasons why we should reconsider the proposed supply of plutonium. The most obvious is the contribution that it will make to building up the American arms drive. For that reason alone—the contribution that it will make to undermining the international nonproliferation regime—I ask the Government to reconsider a deal in which the potential benefits are extremely doubtful and the dangers are clear.11.58 pm
I thank the hon. Member for Edinburgh, Central (Mr. Cook) for initiating the debate. I genuinely welcome an opportunity to have these issues aired in the House. The more that we can get the background details on the record the better the debate will proceed.
I welcome the presence and the intervention of the hon. Member for Bristol, North-East (Mr. Palmer), who will speak in a later debate and is therefore limited in participating in this debate. I am aware that earlier in the day, during Question Time, we were unable to reach a question on this subject. I recognise the hon. Gentleman's long and consistent interest in the subject. If I am not able to take up all the issues that have been raised, I shall be more than happy to try to continue the debate in public correspondence. The hon. Member for Edinburgh, Central is well aware of the important technical nature of many of the questions that he has raised. I shall wish those questions to be answered as fully as possible in language that I shall choose with great care. I hope that my answers, since I acquired additional responsibilities in the area, to the questions that he has been pursuing for some time have been helpful. I wish to recapitulate by saying that we have been glad to provide the hon. Gentleman with data on the United Kingdom civil plutonium production, which is made up as follows. United Kingdom civil plutonium production stocks are about 12 tonnes. The fast reactor programme uses about 6 tonnes. Licenced exports of United Kingdom civil plutonium total about 1·3 tonnes, and plutonium returned to BNFL's overseas customers totals 1·9 tonnes. Therefore, the civil plutonium production amounts to just over 21 tonnes. I am sure that the hon. Member for Edinburgh, Central appreciates that I cannot help in certain areas concerning the production of plutonium for military purposes. As he is well aware, the figures for production of plutonium at BNFL's military reactors at Calder Hall and Chapelcross cannot be made public because they relate to our defence programmes. However, I know that the hon. Gentleman is concerned, as are other hon. Members, about the distinction between civil and military uses of plutonium in Britain. The Government, too, are concerned to maintain that distinction. None of the 21 tonnes of civil plutonium is being used for military purposes. The Government have no plans for putting to military use any plutonium derived from the United Kingdom civil nuclear power stations. That plutonium is subject to safeguards under the United Kingdom Euratom International Atomic Energy Agency agreement. Although the Government do not intend that the United Kingdom, as a nuclear weapons State, should surrender the right under the agreement to withdraw nuclear materials from international safeguards for its military programme, they have no plans to exercise it in respect of plutonium. I turn now to the question of the possible export of civil plutonium to the United States of America. I informed the House of the position on 19 October when I replied to my hon. Friend the Member for Falmouth and Camborne (Mr. Mudd). I said:I emphasised:"Approval in principle has been given to the export of United Kingdom civil plutonium to the United States for.….use in their fast reactor programme. Preliminary discussions only have been held with United States Government officials on this subject".
Clearly it would be more than premature to comment in more detail about the question of price. That was the position on 19 October. It has not changed since. There is a proposal under examination which concerns the possible export of civil plutonium to the United States of America for civil purposes under international safeguards. The export would not be under the United States—United Kingdom defence agreement of 1958, which I can confirm was extended to 1984. It is perhaps unfortunate that that suggestion was made by the press—specifically The Guardian—on 12 October, when the proposal was first reported to the media. It created the impression that the proposal was associated with the defence agreement. I wish to explain the proposal in a little more detail, because it is right that hon. Members should know as much as there is to know about the tentative proposal. The position is relatively simple. In this country we have, as a result of our nuclear power programme over the past 20 years, acquired a sizeable stock of plutonium. As I informed the House on 6 April, our present stock of civil plutonium is about 12 tonnes. Most of it is owned by the generating boards and is stored for them safely and securely by BNFL at Windscale. The boards do not expect to have an early use for it. It is being stored against the day when fast reactors are built in this country to generate electricity. A fast reactor requires up to 6 tonnes of plutonium as fuel and to provide a reserve for reprocessing and recycling of the plutonium fuel. One day our stocks of plutonium will be used for that purpose, but the date by which fast reactors will become competitive with thermal reactors for electricity generation cannot yet be determined. It will depend largely on the price of uranium, which we believe for the foreseeable future will be in plentiful supply. Therefore, our needs for plutonium are likely to be limited to those of the commercial demonstration fast reactor on which the Government are now considering a decision. A considerable quantity of civil plutonium will be stored in this country for some years to come. Let us consider the position in the United States, where it is rather different. There may be a shortage of plutonium for their fast reactor development programme because the policy of the previous Administration halted the reprocessing of spent fuel. As a result, there has been virtually no reprocessing of civil nuclear material in the United States, and the present Administration are experiencing difficulty in restarting their reprocessing industry. As a consequence, I understand that the United States Department of Energy may be facing a shortage of plutonium for fast reactor development. As I said earlier, the position is thus relatively simple. In this country, our nuclear industry has at present a surplus of civil plutonium; in the United States the industry faces a shortage of civil plutonium. It was for that reason that I announced on 19 October that the Government had given approval in principle to the export of civil plutonium to the United States for civil purposes. The decision was taken to enable further discussions to take place. As was made clear in the statement, the export of plutonium to the United States would be subject to assurances from the United States Government that the material sold to them would remain subject to international safeguards under the United States treaty with the IAEA. Since that statement was made, there have been no further developments. There have been no commercial negotiations, and there is no agreement at either intergovernmental or commercial level to go ahead with the proposal. Its status is thus purely that of a proposal under examination by the two Governments. The hon. Gentleman mentioned the exchange agreement with the United States. I stress that that is taken to relate to the United States-United Kingdom defence agreement. As I have already said, the proposed export of civil plutonium would not be made under that agreement, which is a defence agreement and does not concern civil plutonium. As I have also said, there is no agreement yet on the export of United Kingdom civil plutonium; there is a proposal under examination. If the proposal led to an agreement, it would probably take the form of a commercial contract between the CEGB and the United States Department of Energy and be covered by an exchange of letters between the two Governments, as is customary in plutonium transactions. It would be a freestanding contract between the civil nuclear industry in this country and the United States Department of Energy for the benefit of the civil nuclear industry in the United States, requiring, as I have made clear, the approval of Her Majesty's Government. Such a contract would not be in any way a new development for the United Kingdom civil nuclear industry. As I said in reply to a question from the hon. Gentleman on 14 May, 1,280 kg of United Kingdom civil plutonium has been exported since 1971 to other countries for civil purposes. We have exported civil plutonium to Belgium, France, the Federal Republic of Germany, Switzerland, Japan and the United States all countries interested in fast reactor development. About 50 kg was exported to the United States in 1973. These exports have been licensed under successive Administrations. They have been spread over the past 10 years and have been subject, of course, to assurances on international safeguards and, since 1977, additionally in accordance with the nuclear suppliers guidelines. The export of civil plutonium for fast reactor development programmes in other countries is thus not new."It has been made clear in these discussions that any civil plutonium exported would have to remain subject to IAEA safeguards when exported to the United States. The export would be subject to satisfactory commercial negotiations oil price, quantities and time scales. These negotiations have not yet commenced."—[Official Report, 19 October 1981; Vol. 10, c. 79.]
Is the Minister assuring the House that at no time under the United States-United Kingdom defence agreement has plutonium from civil nuclear reactors been exported to the United States?
We have to be very careful about the details in public and, therefore, I should like to write to the hon. Gentleman specifically after going through the details of every transaction with the United Kingdom Atomic Energy Authority. I can then confirm the details to him.
The views expressed by the hon. Gentleman on the possible links between the civil and military programmes in the United States are understandable. I know that there has been much interest about that in the media and in the United States Congress. I do not, however, propose to be drawn into commenting at this stage on the nuclear policies of the United States Government. The way in which their nuclear programmes are organised must be a matter for them to decide. I emphasise that we are concerned at this stage with an inquiry from the United States Government—not a firm request—for the supply of civil plutonium. There is no early need on their part for the material, since their fast reactor has not yet been built. We are concerned, therefore, with a long-term inquiry, not an immediate need. I shall keep the House informed of any developments in our discussions with the United States Government.Higher Education (Government Policy)
12.12 am
I begin with a quotation:
That quotation was taken from the Tory Party manifesto of 1979, the manifesto that brought the Under-Secretary of State for Education and Science to the House. We still have a world-wide reputation in higher education. We have the world-wide ignominious distinction of charging our overseas students the highest fees in the world. The way in which we treat our home students is not much better. I have with me an international league table that appears in the UNESCO statistical year book of 1980. It is clear from it that the participation rate in this country in higher education per head of population is very poor compared with many industrialised countries. For example, in countries such as the USSR and Italy the proportion of the population in higher education is one and a quarter times the proportion in this country. In countries such as Sweden, East Germany and Japan, the proportion is about one and half times the proportion of ours. In other countries, such as the United States, the proportion is over three times that of this country. Certainly our record is nothing to be proud of and it now seems that the Government are hell-bent on making the position worse rather than better by proposing a cut of 20,000 student places in higher education over the next three years. In letters to my constituents and others, the Minister has given the same verbiage—the same rubbish—that I was given in a letter from the Prime Minister. She stated:"Much of our higher education in Britain has a world-wide reputation for its quality. We shall seek to ensure that this excellence is maintained."
Presumably the Prime Minister, in referring to the "next decade", means the decade from 1984 to 1994. If she does, even the Government Actuary's population projection for the 18-year-old group within that decade indicates a fall of only 11 per cent., not the 30 per cent. which appears in the Minister's letters and also in the Prime Minister's letter. I would welcome an explanation from the Minister on that point. It would seem that the Robbins principle, which was established in higher education in the 1960s, is now being abandoned. The principle was that all young people who were able and qualified to take advantage of higher education would be assured of a place in higher education. I am not the only person who believes that, for Lord Robbins, in a "Currrent Account" programme produced by BBC Scotland transmitted on 29 October and in which the Minister who is present tonight participated admitted that the Robbins principle had"The University Grants Committee's target numbers for universities are expected to lead to a reduction of about 5 per cent. in university places for home students by 1984–85 compared with the position in 1979–80. But after that the age group contracts in the next decade by about 30 per cent., and the participation rate should therefore be restored."
Lord Robbins went on to say that he would certainly have resigned, if he had been chairman of the University Grants Committee, rather than implement the cuts proposed by the Government. It is no use the Government simply trying to pass the buck to the UGC. The UGC cannot be let off the hook completely—it is responsible for the distribution, or rather the maldistribution, of the cuts—but the Government have full responsibility for the volume of those cuts and therefore indirectly for the resultant distribution. The solution that I propose to the Minister tonight is not simply a redistribution of the cuts. I shall not argue, for example, that the University of Stirling in my constituency ought to be given more money at the expense of other universities which are critically threatened, such as Aston, Bradford, Keele or Salford. I am arguing for a supplementary grant to be given to the UGC, and I suggest that it be given in the very near future. I understand that a meeting is to be held on 18 February next year, and I hope that the Minister or the Secretary of State will try to give the Committee more money before that date so that extra resources can be given to all the universities which are now critically threatened. I do not think that the UGC is completely faultless in this respect. We have only to look at the composition of the UGC to get some idea why there is such a maldistribution in regard to the cuts. The Government—and the Tory Party when in opposition—have spoken out very strongly against quangos. In principle I am not opposed to quangos, but quangos ought to be democratically appointed and democratically accountable. I also maintain that they ought to be truly representative of the interests that they are supposed to serve. In considering the composition of the UGC we can, by drawing a line through all the universities in Britain, set up a sort of league table, with those which have suffered least from the cuts at the top and those which have suffered most at the bottom. There are 27 universities which suffered a cut of average or less than average, and virtually all of them are represented on the UGC, either on the full committee or on one or more of the sub-committees. Of the 18 universities which suffer a greater than average cut, not one is represented on the main committee of the UGC, and only three are represented on one or more of the sub-committees."gone out of the window".
The point that my hon. Friend is making is very telling. The cuts are affecting those universities which have been most experimental and innovative in their approach to higher education and in the way in which they have designed programmes which would fit the student for the technological and innovative world. Universities such as Bradford which have developed such programmes have not been found to be lacking. They are the very universities which have been subjected to cuts. In the case of Bradford, it is a third of the budget, and 14 of the departments are to be closed. These are the departments which have risen to the challenge of the technological age and have tried to deliver what the country needs. Whether or not they are represented on the UGC, those lire the universities which have been cut, right against whatever the present Government seem to represent in terms of relevance in higher education.
My hon. Friend is perfectly correct. It is the academic ivory tower elitists on the UGC who have been trying to protect themselves and to deal out hatchet blows to some of the younger universities and some of the universities which are not necessarily hidebound by tradition but are trying to bring about many of the innovations which are so necessary in curriculum, in research and in other aspects of higher education.
In my constituency, the University of Stirling has been singled out for one of the most savage blows of all. It is the youngest university in the United Kingdom and the only university in Scotland which was started from nothing in the post-Robbins period. It is proposed that it should suffer a 27 per cent. cut in student numbers and a 23 per cent. cut in recurrent grant by the year 1984. I mentioned earlier Lord Robbins and the BBC Scotland programme "Current Account". I should like to quote him in this respect, because he is a former chancellor of the University of Stirling. He wrote in the Financial Times on 21 July:It is not just the attack on the institution. Let us look at the proposed effects on individual courses within the university. The letter from the chairman of the UGC to the University of Stirling makes particular reference to significant reductions in the number of student places on science courses, including the mathematical sciences—despite the fact that there is a distinct shortage of mathematicians and mathematical scientists. The UGC proposals would mean a fall in the number of students at Stirling university from 3,000 to just over 2,000 by 1984, threatening the viability of the youngest and one of the smallest universities in the United Kingdom. Moreover, I am informed that the financial repercussions of the proposals would mean that unless some injection of cash is forthcoming the university would be running a deficit of almost £1 million by 1982–83, accumulating to £2·5 million in 1983–84 and about in 4·5 million in 1984–85. I do not know whether there is a conspiracy within the UGC or at the Department of Education and Science to deal a lethal blow to Stirling university, but I warn the Minister, the UGC and everyone else that if they have any intention of closing that university in my constituency they will do so over my dead body. Stirling university is there to stay, and we shall fight any Government or UGC proposal to deal it a lethal blow. I speak on behalf of the entire university community and the trade unions representing the academic staff, the ancillary staff and the students. I say that because we realise the tremendous value of the educational contribution that Stirling university makes. Its record speaks for itself. The number of applications from home-based students rose by 35 per cent. last year compared with an average increase in the United Kingdom of 4 per cent. The number of students who made Stirling university their first choice rose by more than 40 per cent. The Government were elected on a manifesto which stated that they believed in freedom of choice in all sectors of education, but their proposal for Stirling university will decrease rather than increase the freedom of choice of many potential students. Taking the criterion of unit costs, the UGC grant per student at Stirling works out at £2,240 per annum, compared with a Scottish average of £3,108. At Stirling, the staff-student ratio is 1:11·3, compared with a United Kingdom average of 1:9·3. Whatever criterion one picks—the number of applications, the number of students making Stirling their first choice, the economic unit costs, the staff-student ratio or, indeed, the employment record of its graduates—there is no justification whatever for singling it out for the devastating blow that is proposed. In speaking of employment prospects, it is important to consider not just the employment of students and potential students of Stirling university but the tremendous contribution that the university makes to employment prospects in the area. The university is the largest employer in my constituency. That may be a sign of how much the area's industrial base has been eroded by the Government, but local people are particularly grateful for the jobs provided by the university. The unions in the university—not just the Association of University Teachers, but NUPE, NALGO, ASTMS and NUS—have all spoken out on these matters. There was a report towards the end of last week to the effect that the university court had drawn up contingency plans for the possible loss of 34 academic jobs in the next financial year, and there may be forthcoming similar plans for a reduction in the number of other jobs. There are 1,135 jobs at the university and probably at least as many again are generated directly or indirectly in the local community. What net savings, either nationally or at the University of Stirling, does the Under-Secretary hope to achieve as a result of the Government's proposals? Some calculations have been done for me by a member of the university staff—I will forward them to the Under-Secretary if he wishes—stating that over the next three years the cuts at the University of Stirling alone are designed to save £4·16 million, but that, taking into account the redundancy payments that would have to be made to academic staff and, at a less generous level, to non-academic staff, the cost of attempting to make those savings would be £8·47 million. What is the point of trying to save £4·16 million by spending £8·47 million? The Under-Secretary may or may not agree with those calculations, so let us consider the reply given by the Secretary of State for Education and Science today to his hon. Friend the Member for Wokingham (Sir W. van Straubenzee). The right hon. Gentleman said:"Where the contemplated general cuts are concerned, the more serious questions concern their incidence, both in place and in time. On the question of place I will say little, since with one exception I do not know the universities more seriously affected. I am hence unable to pass judgment on the decisions of the University Grants Committee. The one exception is Stirling, where I am surprised that the one university of the traditional type to be created in that part of the Kingdom for the last 400 years and which seems to me to be getting along pretty well should be thus affected, presumably in order that Scotland should have its share of extreme victims."
I have no doubt that he will get that—"I propose that, subject to parliamentary approval"—
That is an increase of £16 million. Where is that money going? How much will go on the University of Stirling and how much to the other universities that are under threat as a result of the Government's proposals? I was even more worried to see that the right hon. Gentleman's reply continued:"the total of the universities' grant for the 1981–82 academic year should be increased from the £979 million previously announced to £995 million."
I understand from the weekend press reports of that leaked reply that the extra money was to be spent to avoid redundancies, but it seems that at least some of the £50 million will be used to pay for redundancies. Where is the sense in that?"Over and above the recurrent grant, I am allocating £50 million in the financial year 1982–83 to be used by the UGC specifically for restructuring including the cost of redundancies."
My hon. Friend makes a telling point about redundancies. Will he take on board the point raised by vice-chancellors with me that to advertise early redundancy is to advertise the ability to get out of the system early? What happens is that the most highly qualified, those with a reputation that enables them to start a consultancy or enter research work, leave academic life. It is perhaps the case, under the Government's policy, that the brightest and best of our teachers and researchers have left in their early fifties, creating a generation gap that will never be filled. Have the Government any answer to that criticism?
My hon. Friend is right to refer to the seriousness of the brain drain. My fear is that some of the damage caused by the Government may be irreparable.
I have referred to the tremendous contribution that the University of Stirling makes to the area of my constituency. Its contribution to the local economy has been calculated at £28 million. I do not believe, however, that a university's contribution to the community can simply be measured in terms of pounds and pence. The contribution of the University of Stirling to the local community has been immeasurable. It is a young university that is not hidebound by some of the traditions of the older, more established universities. It has tried to make contact with the local community at every level. The British university system in general is far too elitist. Many universities do not make the necessary effort to rid themselves of this elitist label. That is not a charge, however, that can be laid at the door of the University of Stirling. I could speak at great length about the university's contribution to the community not merely in education but in sporting, leisure, recreational and cultural activities for all age groups and for all abilities. This week thousands of young children and their parents are taking advantage of the Christmas entertainment provided at the MacRobert arts centre, an integral part of the university. It should not be thought that I am defending the status quo of higher education. Nor should it be thought that I am mounting a purely negative attack on the Government's policies. It is not the present Secretary of State who was responsible for starting much of the rot. I am glad that the hon. and learned Member for Bradford, West (Mr. Lyons) may have the chance to state the case for the SDP, the party of renegades. It was his right hon. Friend the Member for Crosby (Mrs. Williams) who was Secretary of State for Education and Science when much of the rot set in. She was the first holder of that position to preside over a reduction, in real terms, in the budget for education and science. She will go down in history as having closed more colleges of education than any Secretary of State for Education and Science before or since. She, deliberately or otherwise, engineered a confrontation with one of the most moderate of trade unions, the Association of University Teachers, over one of the most modest of wage claims. She also brought about the acceleration of the trend whereby we now charge overseas students the highest fees in the world. Nevertheless, she now poses as a great defender of the Third world. I hope that we can see through that kind of hypocrisy. I hope, too, that the hon. and learned Member for Bradford, West will tell us tonight about his party's policy on higher education. Our higher education should be more comprehensive and available to more students, particularly those who are being denied the opportunity which should be their birthright. Instead, we see savage cuts in education, which are making education less available to those young people. The Government seem to be trying to make higher education more elitist instead of more comprehensive. They are turning back the clock to the pre-Robbins days. It is a false economy, particularly at a time when there is much talk on both sides of the House about the need for industrial and economic recovery. This nation is crying out for industrial and economic recovery, so where is the sense in cutting off our very lifeblood—the supply of young people, university graduates particularly in science, maths and technology based courses, who are essential for our industrial recovery? If and when—I hope that it is when, not if—that recovery comes, we may be so desperately short of trained manpower and womanpower that we shall not be in a position to take full advantage of it. It is ironic that we now have a Secretary of State for Education and Science who has recently been shifted from the Department of Industry. If he continues according to his previous incarnation, he will destroy our education system in the same way as his economic policies helped to destroy our industrial base. My final appeal is to the Under-Secretary. He is quite enlightened. He is a university man. I am sure that he can use his brains to bring pressure to bear on the Secretary of State who, by comparison, is a very intransigent person. I know that the Under-Secretary is a new boy in the Department, but he has more experience than the Secretary of State in dealing with education and in attempting to educate people. I plead with the hon. Gentleman to try to educate the Secretary of State out of his mad monetarist theories and to get across to him the message that he should be seeing public investment, especially in education, as being not just an exodus of money from the Treasury but as a positive investment in our future and in the building of a better future for generations to come so that they can construct a better society where education is seen to be a right for all rather than as a privilege for the elitist few.12.45 am
I start by congratulating the hon. Member for West Stirlingshire (Mr. Canavan) on initiating this debate on higher education. It may be a mini-debate, but it is a natural follow-on to our debate on 18 November. I hope that the hon. Gentleman will forgive me if I do not take up his remarks, because I want to accept what I conceived to be the invitation of my right hon. Friend the Secretary of State when, in answer to a question of mine on 18 November asking what would be the cost if the time for implementing the cuts were extended from three to five years, he replied:
It has been argued that the case for three years is as valid as the case for phasing the cuts over a longer period. It could be argued from the Government's point of view that the case for three years was the only case to make if we were serious about getting the economies in higher education and that it would be difficult to prove that the phasing out over a longer period could make greater economies. I shall seek to keep my speech both within the terms of higher education and within the terms of a specific university. I refer to the University of Reading, of whose court I am a member. I visited the university at the end of the Summer Recess as the guest of the vice-chancellor, and during my visit I had a lengthy conversation with members of the Association of University Teachers. Although it might be an exaggeration to say that everyone accepted the need for the cuts in higher education, I found that most of those to whom I spoke realised that no institution relying on public money could expect to be exempt from making economies at a time of national stringency. What worries those who run Reading University is that they are being asked to absorb a cut of £1·8 million over the next three years out of an annual budget of £22 million."I do not have a figure in my mind. Those who maintain that it would be educationally less harmful but still productive of the same savings to go slower have not made out their case. I concede that logically such a case could be made, but I do not believe that it has been made. If one is made I shall consider it."—[Official Report, 18 November 1981; Vol. 13, c. 306.]
Will the hon. Gentleman give way?
I will not, if the hon. Gentleman will forgive me. If he intervenes, my speech will only be elongated and, since I hope that he will join in the debate, I am sure that he will prefer me to conclude my remarks quickly so that he can make his own contribution.
I was told that about 70 per cent. of university expenditure went in salaries and that at Reading one academic job plus the ancillary staff providing the back-up cost about £20,000 per annum. To achieve a reduction of £1·8 million meant that 90 jobs at the university would have to go and, because of the proposed three-year period for the achievement of the reduction, it would necessitate what one academic described as "a crude chopping exercise." What is more, because of the types of contract held by many members of the academic staff, and the existing employment laws, reductions in staff will occur in a haphazard way. People will go because they are willing to accept early retirement. Thus, departments for which Reading university is famous may lose staff, while other, little-used, departments, in which economies could be made, will remain at full strength, because breaking contracts of employment will be too expensive. Even as it is, the cost of getting rid of staff within the three-year period will mean that the university will not have the funds to take on necessary staff in departments that have vacancies. The net result must be damage to the reputation and academic standing of Reading university in certain disciplines. I cannot see that such a situation is beneficial either to the university or to higher education in general. While it might be an over-statement to claim that all these evils will disappear if the cuts are phased over five or six years, the vice-chancellor believed that it would make an enormous difference. When I sent him the Official Report of the debate on 18 November, and drew his attention to the remarks of my right hon. Friend the Secretary of State, I asked him to elaborate further on why five or six years would prove to be more economic than three. He replied as follows on 3 December 1981:"I think the costs in this University would be much less over a 5/6-year period than over 3 years. Our contracts appear to give cast-iron tenure and neither the Premature Retirement Scheme nor the modified one suggested by the Committee of Vice-Chancellors will be generous enough to persuade sufficient staff to retire voluntarily. The age structure of academic staff in this University is so concentrated in the 40–55 age range when persons have their greatest family commitments and by which time they are established in one career that dismissals and the
Any of us might describe that as a cri de Coeur. I want in particular to repeat the first words of that extract from the vice-chancellor's letter:breaking of contracts of substantial numbers—perhaps 50—would seem unavoidable in a 3-year period. The damages for so doing for so many of them are bound to run well into six figures. Two or three extra years will surely reduce the number of compulsory dismissals to a couple of dozen or so and perhaps less. Until, however, the modified retirement scheme is accepted by the Government and guarantees of money to meet the cost of that are assured I cannot even embark upon persuading more to go voluntarily. We really do need action very quickly. We can neither afford to keep the staff nor to sack them."
"I think the costs in this University would be much less over a 5/6-year period than over 3 years."
I understood the hon. Gentleman to say earlier that the Association of University Teachers and the vice-chancellor accepted the necessity for cuts at Reading university. If that is so, I am surprised because the picture that I have had from the vice-chancellors and the AUT is that they do not accept the necessity for cuts at a time when so many young people at 18 are coming out of sixth forms and finding no place to go in higher education. Is the hon. Gentleman absolutely sure that the vice-chancellor of Reading university and the AUT are not being misrepresented by his saying that they accept the necessity for cuts?
It is always possible for one's ears to deceive one. If the hon. Gentleman had listened carefully he would remember that I said that it might be an exaggeration to say that all those to whom I spoke accepted the need for cuts, but they all accepted that no institution using public money could be exempt from such cuts at a time of national stringency. If the hon. Gentleman looks at my speech in Hansard, I do not think he will find that I misled him, either at the beginning of my speech or in my answer to that intervention. I am sorry that his intervention may have spoilt what I think will be the more important part of my speech.
I quoted the opening words of an extract from the vice-chancellor's letter. I think that I had better read it again:I took those words to some of those who I thought might be able to flesh out what he meant in terms of universities generally. I propose to give some of the figures that I was given to back the view of the vice-chancellor of Reading university—a view which I am sure many of us agree is shared by other vice-chancellors. The calculation is roughly as follows. I understand that currently there are 40,000 staff on academic scales. The implementation of the Government's cuts over three years will mean the shedding of 5,800 academic staff. At present, about 500 academic staff are lost annually by natural wastage, so the number who must be persuaded to leave by voluntary early retirement or compulsion is about 4,300. Each of their job losses will, on average, total £60,000—or £258 million in toto—over three years. It is fair to say that that is a minimum figure. It could be considerably higher. If we add to the figure for academic staff about £10 million for ancillary staff, it is reasonable to suggest that the cost of the three-year cut in the programme will be about £268 million. I appreciate that these are rough estimates. If we look at the same figures over a six-year timetable, we get a different result. To start with, 1,500 fewer staff would need to be shed—thanks to natural wastage—so only 2,800 would have to go either by voluntary early retirement or by compulsion. The cost of shedding jobs three years later will be less at least by the cost of three added years for pension, while the cost of shedding 1,400 jobs in the first three years will be a multiplication of 1,400 jobs by £60,000—or £84 million—for the second three years the figure will drop to £69 million. What is more, the second sum will be payable three years later, which could mean a saving of about £50 million, assuming an interest rate of 10 per cent. To employ 2,800 staff for three years longer will cost about £126 million. It is suggested that a six-year phasing period would almost entirely remove the cost of shedding non-academic staff. Therefore, the total cost of phasing the cuts over six years suggests a total of £260 million—or a saving of £8 million—over the figure for three years."I think the costs in this University would be much less over a 5/6-year period than over 3 years."
What if the best staff are shed?
I hope that my hon. Friend the Minister will agree that these figures need careful scrutiny. I make no claim that they are precise figures. They are rough estimates, but they are estimates by those who understand these matters. They are estimates which seem to require the activity of the Department to show whether they are sufficiently accurate for the Secretary of State to reconsider his decision about the three-year period. Early retirement, with its concept of 10 years to be added to age, holds out attractions only for the 55-year-olds. Therefore, an improved offer to encourage early retirement will be needed if the Government are to go ahead with the three-year timetable for these cuts.
I hope that, as a result of what I have said, my hon. Friend, either tonight or on some other occasion, will let me know whether the Government think that these figures stand up. Even so, I ask him to do me the courtesy of a full reply. If these figures do not show the kind of savings about which I have spoken, naturally I shall bow to his greater wisdom. However, if they show those savings, I hope that the Government will show some flexibility overall or with respect to certain universities which will be seriously damaged if we stick to the precise concept of 36 months rather than some longer time.12.59 am
The number of 18-year-olds in our universities will peak in 1983–84. That will coincide with the most devastating stage of the cuts imposed on our universities. Those cuts have been described as—among other things—"academic butchery", "educational vandalism" and "damagingly fast". In addition, the implementers of such cuts have been likened to the Governments at Rome, knocking down educational institutions.
Of those qualified, one in seven will be denied the opportunity to go to university as a result of the cuts. Some will go to polytechnics. However, I am not aware of any convincing evidence that it is cheaper for the Government to send students to polytechincs than to universities. Even if polytechnics were cheaper, I am not convinced that they are better than, or even as good as, universities. That denial of opportunity to attend university takes place at a time of raging unemployment. If the youth of today cannot be educated, there is no prospect for many of them other than the dole queue. The cuts follow a decision to raise overseas students' fees. The fees alone are now £3,600 for an engineering or science course and £2,400 for an arts course. Those sums do not include the necessary books and living expenses, which amount to about £2,000 per annum. Therefore, an overseas student now requires about £23,000 for a four-year course. At Bradford there used to be 600 overseas students, but the effect of the cuts has been that that number has been reduced to 300. As a result of the fall in the number of overseas student applications, the quality of those overseas students selected is likely to fall. Universities are desperate for overseas students because such students pay substantial sums of money. I had the benefit of listening to opinion in Mauritius in November and in Hong Kong in February. There is extremely strong feeling about the increase in overseas students' fees. Mauritius has a French as well as a British tradition, because the French once occupied it. Virtually no one there can afford the new fees for their children, and there has been a marked and rapid diminution in British influence. As a result, the French—who are making a great effort—will eventually eliminate British influence. Our exports will feel the damaging results of that policy in years to come. In Mauritius there is a remarkable and ever faster re-orientation towards France and away from Britain, despite our close ties with that country. Leading figures in Mauritius are arranging to send their children to France, which arranges their education at a very cheap rate. Indeed, I believe that France does not even charge fees. We in contrast, have made it difficult for such countries to send their children to Britain to be educated. The Government's policy is not only an attack on the Third world—which we should do much more to help—but an attack on Britain's industrial base. It will damage that base as the future leaders of such countries look elsewhere for their industrial needs. The fall of income in Bradford, as a result of the 50 per cent. cut in the intake of overseas students, is substantial, and that must be added to the Government's imposed cuts. It must be borne in mind that when one imposes rapid cuts on universities, one is faced with a remarkable redundancy bill which, as the Committee of Vice-Chancellors, suggested, would be about £180 million. When the Government talk about savings, they must set off against them huge redundancy payments. It must be better to consider retaining all the expertise, devotion and research facilities in universities, than putting people into what is, effectively, compulsory redundancy. Since most of the university expenditure is on salaries, the pressure on them also means a great squeeze on what is called the "non-pay sector". Therefore, the universities paint every five instead three years, close part of their computer operations down and so on. In the end, that impoverishes the university environments and is against a background of more students—as in Bradford university—with fewer staff than 10 years ago. As has often been said, the main thrust of the cuts is against the technological universities—in order of weight, Salford, Aston, Keele, Bradford and Stirling. Bradford university faces a cut of about 29 per cent. in finance over three years. The first cut is of 15 per cent. this year and little notice was given by the Government that they required such a quick cut of that magnitude. The speed and scale of the university cuts defies rational decision-making; everything is being done, in the badly affected universities, at panic speed and in a way that undermines the confidence of the staff and students. In Bradford, there is expected to be a heavy cut in the three-year period in home students, and there has already been a 50 per cent. cut in overseas students. Bradford's student population is apparently to be reduced to below 4,000 in three years, from its pre-cut level of 5,000, and it is noted for its sandwich courses and integration with industry. If the cuts are implemented, the numbers of students in sandwich courses will fall from 76 per cent. to 67 per cent. However, that 67 per cent. is of a far smaller student force than will exist by 1984. It is interesting to note that if one could stagger the cuts from three to five years, and reduce them from 29 per cent. to 25 per cent.—a reduction of 4 per cent. in the financial level of the cuts—one could keep all the sandwich courses going and maintain the 76 per cent. Bradford has 900 students always working in industry. The effect of the present operating cuts is that by 1984 Bradford will have only 500 students working in industry. Since Britain is dependent on industry for its future, that is a terrible indictment of the Government. It is disgraceful that the number of students who will work in industry will be reduced by that percentage. This year Bradford university's income of £13 million has been cut by £2·5 million. That is a colossal cut. There are proposals to close no fewer than nine areas of study.It is proposed to close 14 departments.
I understand that the proposal is to close nine. I heard that from the vice-chancellor on Monday morning. The textile department is due to be closed m a textile city. It is horrifying that in one of the major textile centres in the United Kingdom a university is proposing to close an effective textile department—admittedly, it has been run down somewhat in recent years—that was doing a valuable job.
Bradford university's textile department is threatened with closure because of the Government's cuts. That must be seen in the context of textile education and training cuts throughout Yorkshire and Lancashire. The infrastructure of education and training in textiles is being cut away so that in the end it will be inadequate.
The hon. Gentleman has made a valuable intervention. In addition to the proposed closure of the textile department, it is proposed to close the applied biology department, which is represented by some talented staff. Colour chemistry, research in education, science and society and other departments are similarly facing closure. Apart from the departments that are scheduled to disappear, there are others that are scheduled for cuts of 50 per cent. Fundamentally, only engineering and the languages school seem likely to escape.
In the cuts there will disappear a history of dedicated work, impressive national and international reputations of certain departments, a welter of original research that is currently being undertaken, and the moral of an entire university. If the staff, both academic and non-academic, lose their battle with the Government—about 500 are likely to go, if not more—there will be nothing left but for each group to fight for its own department. That will be a sad thing to see. Individuals are fighting for their research work and the opportunity to continue it, work in which they have been involved for a long time. They will fight to continue to work on their publications, for their students and for a lifetime's dedication. The Government say—I had an interview with the previous Secretary of State for Education and Science, the right hon. and learned member for Runcorn (Mr. Carlisle)—"It is the University Grants Committee". It is plain that the committee has to operate within whatever budget the Government allocate to it. I am not saying that the committee is clear of all blame, but I do not find it very acceptable that the committee is so coy about the reasons for its various decisions. The complaint is expressed in Bradford that some of the departments were not even visited by the committee before the decisions were announced. There seems to be a case for much more open decision-making than has been the case so far. One wishes to know in detail the criteria of the UGC. Is it using the criteria of employability? If one considers the percentage of students at technological universities who are employed compared with those who obtain employment from other universities, the technological universities—it applies to Bradford—come high in the list. When one considers the effectiveness of the courses at technological universities, especially Bradford, the results are good. One feels that the criteria of the UGC must be quite other than those. One wishes to know why a technological university of such high reputation has been marked out for the full savagery of the cuts. If it is important for new developments in biological sciences to be supported, why have the life sciences been earmarked for such terrible treatment? Why do the Government believe that we can encourage innovation and new ideas when the universities, which are at the centre of new ideas for industry, are so seriously to be marked by the financial measures? It must be wrong to discourage our higher educational system by operating chiefly within the overall contraction against the universities, which are trying to bring about constructive change by the introduction of sandwich courses. The Government must think again. Two things must be done. One is to extend the period in which the cuts are to operate from three years to five years. My understanding is that if five years were allowed instead of three years in which to implement the cuts, at least some rational approach would be made to the cuts. There would be less panic and the matter could be phased in a much more civilised way. The second proposal—which is obvious—is that the scale for Bradford and other such universities is far too high. It should be brought down substantially from 29 per cent. One appreciates that universities must take their share of cuts in a bad economic climate, but 29 per cent. is absurd and devastating. It is difficult to find the appropriate words to describe the effect of a 29 per cent. cut to be implemented within three years and with little notice. There is no doubt that the feeling against the Government in Bradford university—and, I have no doubt, in other universities—about the speed and scale of the cuts is enormous. The Government should try even now to increase the time-scale and reduce the cuts to be imposed. I should be grateful for that. It would restore morale considerably and would enable order to come out of the chaos. Bradford has an able vice-chancellor in Professor West. He works day and night dealing with the proposals for the cuts, their effects and with representations made about them. I have no doubt that he is appalled by the size of the job that the Government are forcing him to carry out in such a short time. The Government should accord their vice-chancellors far better treatment than they do. They should accord the technological universities, upon which our future depends, far better treatment than they do. I hope that the Government will change their minds.1.19 am
So far in the debate on this immensely important subject we have seen a contrast between the prophets of gloom and doom and special pleading on the Opposition Benches and a realistic analysis of what has been and needs to be achieved in the present budgetary circumscription in the excellent speech of my hon. Friend the Member for Newbury (Mr. McNair-Wilson).
I wish to take up the projection in the speech of the hon. and learned Member for Bradford, West (Mr. Lyons) of the drop in the number of overseas students. In Sussex university it has been vastly less than was expected. We do not know the figures for the present year, but there has been more miscalculation and misforecasting about this matter than about any other aspect of university financing.Will the hon. Gentleman give way?
No. The hon. Gentleman has made many interjections at great length.
The fact that we have much to be proud of in our universities has not been mentioned. In our staff-student ratios, examination pass rates and much more we compare favourably with Europe and elsewhere. Twenty years ago we had 25 universities and we now have 45. The number of students has increased from 119,000 to almost 250,000. The quality must be maintained and improved, but it is no bad thing that that has to be achieved within budgetary disciplines. It has concentrated the minds of the UGC in considering the grant for each university. It has also concentrated minds in each university.Will the hon. Gentleman give way?
No. I am in the middle of my speech.
It requires a more careful apportionment of grants between academic departments and between pay and non-pay costs. In planning funding for the forthcoming year, the balance between the many calls on the UGC's funds has been excruciatingly difficult. It is because of such difficulties that the UGC is charged with the task, instead of its being left to the Government. No Government should take on themselves the allocation of university grants directly and intrusively. That suggestion appears to underlie some of the criticisms of the UGC's actions this year. The UGC's decisions have had and will have an impact on students everywhere. No one should minimise the difficulties that individuals or universities will face to an even greater degree in forthcoming years, but at this time of circumscribed budgets the universities, like everyone else receiving taxpayers' money, must share in the circumscription. A constituent of mine, a professor at Sussex university, wrote to me in the following terms:of the cuts in the allocation to Sussex university"For the University of Sussex … the announcement"
That point has been made by hon. Members on both sides of the House. He continues:"implies a reduction of about 21 per cent. in income between 1980–81 and 1983–84. An adjustment of this magnitude, made over such a short period, is bound to lead to serious disruption of the university's work."
That point was questioned by Opposition Members, but here is another member of a university who recognises the need for control of public expenditure."It means that we have to turn away qualified students. It means that courses such as those in material science, which are surely important if the United Kingdom is to have a technological future, have to be discontinued. It means that what we can offer to the students we do take is a poorer education. We have fewer books, less up-to-date equipment. Those of us in universities recognise the need for control of public expenditure".
rose——
No, I shall not give way. I am in the middle of a quotation. The professor continues:
"We further recognise the need to adjust to the smaller number of 18-year olds from about 1986"—
On a point of order, Mr. Deputy Speaker. Is it right for an hon. Member to quote a letter that he has supposedly received without naming the professor from whom he received it?
It is quite in order for the hon. Gentleman to use quotations in his own way. It is his responsibility.
Thank you, Mr. Deputy Speaker. I shall continue quoting from the same letter. The professor states:
"But to make cuts as quickly as proposed is to fail to develop the human resources of the country. Already we have a smaller proportion of people in further and higher education than all our industrial competitors.
That point has not yet been made in the debate.Many people I meet outside the university think that we are engaged only in the teaching of undergraduates".
The University Grants Committee has suggested for Sussex a 21 per cent. cut or shortfall in expected income in 1983–84, compared with the amount estimated to maintain the 1979–80 level. That compares with cuts in all universities of an average of 16 per cent. It compares unfavourably, partly because of the above average number of overseas students in comparison with 1979–80 and partly because of above average cuts in grant per student. Budget cuts have already been made since 1979–80, reducing the annual deficit to about £750,000 in 1981–82. Even after allowing for natural staff wastage and using up all the reserves, Sussex university now risks insolvency in 1982–83 because of the costs of making staff redundant by compulsory as well as by voluntary means. That could cost over £ 3½ million between 1980–81 and 1983–84 without any allowance for the awards for wrongful dismissal or any compensation from the UGC of £5½ million which has to be spread over all universities during the three-year period. Any contribution from that fund would make very little difference to the shortfall for Sussex. There seems to be a firm financial case for extending the rundown period from three to five years, and I hope that the Government will re-think the time scale for the cuts, because it would allow Sussex, like other universities, to close the gap by income generation, particularly by aggressive selling of the capacity to accommodate overseas students, by natural wastage over a longer period, by early retirement over a longer period, and by some voluntary severance. There is also a need for some Government underwriting for the repayment of the sort of loan which would be required to cover what could easily be described as the capital cost of benefits to be met in one year, in order to save the salaries of staff over a period of 10 years or more, by paying for redundancies now and saving staff costs in the future. I hold no brief for the unthinking maintenance of universities as they are at present. We shall need to have more effective institutions in university life, as elsewhere, with a more flexible role in the future than is to be seen today, but that is unlikely to be achieved by the imposition of cuts on a scale and to a timetable that the Government seem presently to envisage. All Government Departments, all Government-funded sectors of our life, should look at their operations and ask the most piercing questions about their cost-effectiveness. This should be done as a continuing exercise over an infinite period so that waste is eliminated in areas which are inefficient or out of date, and not as an indiscriminate cut across the board. The effectiveness of cuts must be analysed and the timing of cuts must be extended."They are surprised when I say that I am engaged on a project with the British Steel Corporation on an energy-saving process for the 1990s, or with another industrial firm on molluscicides for control of bilharzia. Research of a similar kind is undertaken by almost all my colleagues. In chemistry, where most costs are related to the cost of energy, the increase over the last few years has been far higher than the average increase due to inflation, yet our budget between 1974 and 1981 has been increased by about 9 per cent. a year. We have kept going only by making the most drastic savings: further cuts of 20 per cent. in 2–3 years as presently proposed are impossible without severe curtailment of what we do."
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I have a vested interest in the subject, in that I represent a constituency where large numbers of students attend Bradford university. In addition, I worked for 13 years as a university teacher in various universities.
I have been appalled by some of the arguments that I have heard this evening from Conservative Members. It is a refreshing experience to have with us the hon. Member for Lewes (Mr. Rathbone), although I do not agree with his sentiments and deplore the fact that he would not even allow me to intervene at a crucial point in his speech. Perhaps I may be allowed, during my few remarks, to answer some of his points. I congratulate the Secretary of State for Education and Science, after his great succcess in the Department of Industry in setting industry on a new course, on appraching education with the same verve and enthusiasm. It is marvellous to know that the Prime Minister recognises talent in her Ministers and that, after his triumphs in industry, the right hon. Gentleman is engaged in his new task of reorganising education from top to bottom. Labour Members await with great interest the results of his endeavours. I argued with the right hon. Gentleman, when he was Secretary of State for Industry, about the foolishness of his attempt to turn back the clock in terms of industrial reorganisation and the development status of places such as West Yorkshire, and about the blank refusal to accept that industrially, West Yorkshire had changed radically since 1979, when his party was elected to power. I note the presence of my hon. Friend the Member for Keighley (Mr. Cryer). When we were arguing for a rethink about industrial development status for West Yorkshire, we argued passionately about the effect that that would have on that area. This evening we are arguing passionately about the effect that the changes in higher education and the Government's policies will have on places such as West Yorkshire. People tend to forget that Bradford university is the biggest employer in Bradford. It is a shameful state of affairs when the biggest employer in Bradford is Bradford university, the biggest employer in Huddersfield is Huddersfield polytechnic, and the biggest employer in Swansea is Swansea university. If we recognise the facts, we must defend those employers of labour—and not only labour but our future generations of skilled and highly trained people. The Under-Secretary of State has his head in his hands. I am not surprised about that. I spent many weeks sitting opposite him when he was a humble Back Bencher during the Committee stage of the Finance Act 1981. He often had his head in his hands then. The posture was the same. With his keen interest in education, I cannot understand how he can remain silent when we have more young people aged 18 coming on to the labour market and when his Secretary of State believes that greater competition, cutting off 10,000 or 15,000 young people from a university education, means an increase in standards for young people going to university—in Bradford, Salford or Aston—or to the polytechnics. Does the Under-Secretary sincerely believe that his Secretary of State is right when he says that the increased competition for places—from about 15,000 young children of our constituents who will no longer be able to attend university—will mean that England, Wales and Scotland will be better places? I believe that the Under-Secretary knows the situation that reigns in universities. We do not have fluctuating standards of degrees. He has been in the university world. He knows that we have a system of university examinations. Apart from Oxford and Cambridge, which I exclude from the high standards of which I speak, we have an interlocking system of external examiners. They visit university after university to check that standards of degrees are always maintained. A first-class honours degree at one university is the same as that at another, and an upper second-class, a lower second, a third and a pass degree are the same as those at other universities. No rubbish is talked about increasing standards. If we had a Government who believed in education and we saw an expansion of education places, we might see more young people getting pass degrees or lower seconds, in terms of an average, as compared with firsts and upper seconds. But if one believes in that system, that does not matter. As the Minister knows, young people will benefit from higher education and the opportunity to expand their talents and to pursue their knowledge through a university career. What the Secretary of State is saying is that by cutting off 15,000 young people from that opportunity something better will occur. I challenge the Under-Secretary of State on this and I hope that he will refer to it in winding up the debate. From 13 years of experience in university teaching, I know that it is not so. The kids are brought in and given a university environment, and their minds are expanded. As a result, students who one perhaps expected to fail or to achieve below-average degrees, their minds expanded by the opportunities offered by higher education, surpass all one's expectations and achieve standards that one would not have thought possible. I refer the Under-Secretary of State to "University Challenge" on Sunday. My hon. Friend the Member for Edmonton (Mr. Graham), as an Open University graduate, will be interested to hear that the Open University achieved a great victory over Cambridge university, of which I believe the Minister is a graduate.indicated dissent.
Perhaps it was the other place. A lorry driver's mate who had not previously had the opportunity of a university education shone in that contest and Cambridge was sent down the road by the second-chance students of the Open University. I hesitate to remind my hon. Friend the Member for Keighley that among the great achievements of the 1964–70 Labour Government was the founding of the Open Uiversity to expand the opportunities and challenges open to those lost generations who never had the chance of receiving a higher education.
We now have a Government who not only wish slowly to kill off the Open University. I believe that that is what the Conservatives really want in the long term, however much they may pretend that they are trying to sustain it with the odd £500,000 here or there. Theirs is a policy of killing off higher education for those who need a second chance, whether in the conventional universities or in the Open University. In counting the blows that higher education has suffered since the Conservatives came to office in May 1979, one must turn first to the subject dealt with by the hon. Member for Lewes, who would not let me intervene. Right on his doorstep is Sussex university, about which I know something as it is somewhat similar to London university and to Bradford university of which I know a great deal. The hon. Gentleman spoke of the change in the Government's attitude to overseas students' grants. He said that the universities panicked about that measure and that when it came to the test they found that the problem was not as bad as they had thought. He should consider carefully the following point. I have a close connection with London university and with several other universities. Perhaps we have only slightly fewer overseas students than we had after the big increase in their numbers, but we have become the nation of the tourist educational circus. We no longer attract the genuine student from the Third world who wants to pursue a three-year or four-year course in technology, the arts or social science. We have become the fun circus of the world. Wealthy students from America, the Middle East and the Far East come for two or three terms and throw in tours of places of major historical interest, including Westminster, Hampton Court and the rest. If the Under-Secretary goes to the London School of Economics and examines the change in the type of student coming here in the past two or three years, he will see that we are the centre for the tourist student who comes for a fun semester or fun year. British universities have sent out scouts to attract such students. We can no longer attract the worthy Third world student who wants to come here to learn chemical engineering, social sciences or whatever. We are reduced to our universities going round the world cap in hand telling students that they can have a little education with a little sightseeing and can easily pop over to Paris. We have deserted the Third world and we are beginning to reap what we have sown. I invite the Under-Secretary to carry out a fact-finding tour of West Yorkshire's higher education establishments. We no longer have students coming over to study textiles, design and the other subjects that are traditionally rooted in our culture. We have the tourist student. The Minister was shaking his head, but I invite him to come to Bradford and Huddersfield to consult the vice-chancellor and the polytechnic principal to learn the facts. We have ceased to attract the worthy student from the Third world. We attract instead the playboy sons of the rich in other parts of the world, and we suffer from the fact that young men and women are no longer going back to the Third world thinking in British terms—of our laboratory equipment, our values and our computers. It is easy to be jingoistic, but in terms of "brass" and common sense we have divested ourselves of an investment opportunity. It astounds foreigners who come here. I meet many foreigners from all parts of the developed and under-developed world and they ask how we can charge such fees for overseas students and renege on our historic commitments to past colonies, the Commonwealth and the Third world. As the Prime Minister talks about aid to the Third world as being handouts to the poor, perhaps we should not be surprised at the Government's attitude. The Government have set their face against helping the Third world and against the investment opportunities in selling British products and enthusing people about the British way of life. The Government's whole attitude to higher education is a disaster. I challenge the Minister to come to Bradford early in the new year. I promise him a rest for Christmas and will even wish him a merry Christmas. However, if he wishes to visit us early in the new year, Opposition Members, I am sure, will be willing to show him around Bradford, Huddersfield and Keighley. We would be able to show him what has happened to the institutions. One-third of Bradford's budget, for instance, is to be cut in three years. There is disagreement over whether the number of departments affected will be nine or 14. One can imagine the effect on the morale of the teaching staff. I met recently the vice-chancellor of the university where I was formerly employed. He spoke about the marvellous conception in which early retirement would be applied to the senior lecturer who had not really adapted to the job while the good researchers and professors remained. That is not what has happened. A little research by the Government will show them that some of the most able academics, teachers and researchers in British universities are taking early retirement because they are the people who choose to enter consultancy work or private research or to follow their own concerns. The Government are stripping British universities of their talent. They are killing the universities. It is a tragic situation. We have a Secretary of State for Education and Science who has no knowledge or understanding of higher education, just as he had no understanding of industry. As someone who has spent many years in higher education, I do not believe that the Opposition are conservative about what we believe should happen. It is a tragedy that we still look back on the Education Act 1944 and the Robbins report as the great landmarks in educational advance. It is high time that society erected a new landmark stating its belief in education and higher education for all. The frontiers of higher education should be expanded to welcome people of all abilities. To those entrenched vested interests in higher education, whether vice-chancellors, university teachers or the Trades Union Congress, the message must be the need for a radical purpose in higher education. In a period of economic stress it is not a question of economic retrenchment. What Government with an iota of common sense would say that at a time of economic recession and hard times we should cut back on higher education? Surely we should say to the entrenched vested interests "You should work harder. You should have higher student and staff loads. You need bigger classes, bigger tutorials, larger numbers of entrants." That is what we would welcome in a time of economic recession. At a time when hundreds of thousands of young people are leaving school at 18 years of age with no jobs and no future, is that not the right time to say "We shall make the universities toe the line"? We should not tell them to cut back. There budgets may be stablised, but we must tell them that they need to have more students. We must tell them to work harder, expand, and use the talents in their institutions to educate more young people. If that is what the Government were doing in higher education, they would have my vote. That is how people in the country expect us to react today. We must give young people the chance. We must be tough with the universities. We must not cut them back so that they cease to have a viable existence. We must tell them to educate more young people, more scientists and more technologists, so that our country can build on strength. Let us go forward with that attitude. Then we shall solve the problems that face our country instead of giving up, as this Government have obviously decided to do.1.56 am
When the mother of Parliaments is meeting in the middle of the night, with perhaps six hon. Members talking and an unmoved junior Minister who has a brief which has been written by the civil servants and which he will read, no matter what anyone says, it is hardly surprising that people sometimes regard it as a cosmetic exercise—words that, in these days, apparently incur criticism. Nevertheless, I believe that the case has to be put for higher education, and not just in Parliament. Parliament does not exist in a vacuum. The case should also be put outside Parliament, whether in tent cities, demonstrations or marches, so that members of the Government, who meet in Cabinet committees and decide to inflict punishment on the universities, have a change of heart.
The case is strong. I suppose that I speak with a vested interest, because I am the father of a daughter who is doing O-levels and a son who is doing A-levels. I am like millions of other parents who see a Conservative Government cutting back the opportunities for young people. What the Government are doing is entirely wrong. The policy should be reversed, and in my opinion there is a good case for so doing. Recently, there was a splendid demonstration by the Association of University Teachers, with a massive lobby of Parliament. There was a huge queue outside, which was well organised, well briefed and well able to express the strength of its case. There were representatives of all the universities throughout the United Kingdom. Those people will be disappointed if they continue to see a stony face from the Government against the good and convincing case which they put forward with their vested interests on behalf of the parents of our nation's young people and on behalf of future generations. I hope that the Government will take heed. I hope that they will not just see that lobby as a meaningless demonstration. If the Government are inflexible, people will be frustrated and led to believe that the ordinary democratic processes do not have much meaning. The University Grants Committee, the handmaiden of the Government's policy, is playing a subservient and lickspittle role in complying with the Government's wishes. It is given a cash limit by the Government, and then it decides in a subservient and acquiescent manner who is to get the money. So the UGC is not beyond criticism, but the real masters of the cuts are the Government. Although the UGC comes under scrutiny and clearly needs to be made more accountable, bearing in mind that in the past it has simply handed out money in more or less constant and in some areas in slightly increasing volumes and people have been satisfied, when it makes decisions which can be crucial to the effective future life of a university, this virtually self-perpetuating oligarchy should be much more accountable and its composition should be questioned. That is perfectly reasonable. The UGC has decided that the former colleges of advanced technology—Salford, Aston and Bradford—should have the most swingeing cuts of all. According to figures supplied to me by Bradford university, between 1980–81 and 1983–84 Salford will have a cut of 44 per cent., Aston of 31 per cent., and Bradford of 33 per cent. What are the characteristics of these former colleges of advanced technology? They tend to be oriented more to the technical areas of education. They tend to be centred in towns. They tend to be closer to urban communities. They tend, as in the case of Bradford, to have a greater proportion of working-class students attending their courses. It might be thought that those were all excellent reasons for retaining those facilities, but, apparently, in the view of the Government and the UGC, with its heavily Oxbridge-oriented bias, these are the universities which are to be curbed most of all. It may be that the UGC considers that they are close to other universities, as Salford, Manchester, Bradford, Leeds and Aston, Birmingham are, and that there can be some sort of annexing arrangement. But, as the Minister knows—but no doubt he will read out his brief just the same—we need more university places, not fewer. The crisis facing Bradford is an unfair one. It faces a cut in grant from £14·4 million in 1980–81 to £9·46 million in 1983–84. The total cut in all the universities in that period would be met substantially by the development losses on the Trident if the Government decided to take the D5 missile instead of the C4—just in the development work that would have to be thrown away as a result of the change in missile. That puts the matter into perspective. It is a relatively small amount of money. It is infinitesimally small compared with the massive defence expenditure upon which the Government embark so willingly. It is certainly small when set against the need to secure for the nation a certain future by developing the ability and talent of our people. Bradford faces an extremely critical future, with a cut between 1980–81 and 1983–84 of just about one-third. It will lead, according to the information supplied by the university of Bradford, to the phasing out from 1982–83 of applied biology, science and society, colour chemistry, materials science, textiles, research in education, European industrial studies with management, public and social policy, and social analysis, history, literature and history of ideas. All of those are very important and extremely useful subjects, with a strong emphasis on the practical sciences that we need in order to develop technological industry. Yet they are predominantly the areas that will face extinction at Bradford. The cuts that the Government have imposed through the acquiescent and willing UGC come against a background of cuts in the number of overseas students because of the increase in fees that the Government imposed. The new team in the Conservative party has employed a new image-maker, a former advertising and public relations man, who has said that the Government have had some successes. He is grovelling around at the bottom of the barrel for them, because those successes are obscured by the Government's disasters. He has mentioned the successfully negotiated independence of Zimbabwe. The Minister responsible for that achievement has been sacked by the Prime Minister, who one suspects was not very keen on allowing black men and women to rule their country. However, many people regarded that as some achievement. What has happened in Zimbabwe in education? The increase in fees for overseas students here has meant that Zimbabwe, an emerging country, which needs the strength of our education system to aid it, has had to cut back on students. The additional finance that the Government have provided is not enough to allow Zimbabwe to retain its full complement of students, and many have returned at the Government's request, purely because the Government do not have the money to finance them. That has badly hit universities such as Bradford. When students from developing countries start to be trained in Moscow or Eastern bloc countries, the Government will complain about the malevolent influence of the Communists bloc. The Government will have put those students fairly and squarely in the middle of the Communist bloc by their own stingy, swingeing increases in fees for overseas students. It is against this background—the diminution in the number of overseas students—that Bradford faces a struggle. According to the discussion document "Higher Education in the 1990s", published by the Department of Education and Science in 1978, it is not true that there is a diminution in the number of students. A graph provided by the DES shows that although there will be a drop of 4,000 places this year, demand has never been higher and will increase again next year. There will not be a drop in 18-year-olds until the mid-1990s, after which the figures will rise again, according to the commentary provided on the source of information by Bradford university. Therefore, there should be more university places, not fewer. This is entirely in relation to the age level of the population. We are not talking about providing further opportunities to increase the talent and ability of our people, which should be one of the aims of any Government. My hon. Friend the Member for West Stirlingshire (Mr. Canavan) mentioned increased freedom of choice. The Government are reducing the freedom of choice, by taking away the opportunity for talent and ability to be developed. They are showing a philistine attitude, and they are imposing a blindfolded and blinkered attitude on the university sector. Bradford university, which has existed for 15 years, depends not just on Government funds. Indeed, increases in funds from outside sources were spread across the board in 1979–80. Grants from Government Departments, including research councils, were up by £77,000; grants from industry increased by £18,000; contracts from Government Departments increased by just under £50,000; and contracts from industry were up by £39,758. In August 1979, Bradford University Research Ltd.—a company established by the university—was registered in England. That has provided an increased impetus and opportunities for collaborating with outside bodies in profit-making activities appropriate to a university company. The company's profits are covenanted to the university. The university has made an effort to increase outside financing. It is not resting on its laurels and saying "We depend entirely on Government grants". The university has made strenuous efforts to increase outside funding, as the figures show, but there is a limit to what can be done. The basic source of income must be Government grants. There is an important effect on the local community. The Minister may not be aware, but Bradford is an area of high unemployment. It is about 14 per cent. of all adult men and women. The university has provided information about the regressive—almost disastrous—effect on the local economy.Instead of plucking figures from the air and being unfair to the Government, will my hon. Friend inform the House of the unemployment rate for Bradford and the surrounding area in May 1979 when the Thatcher Government were elected?
It was certainly higher than in my constituency, where it was 4·5 per cent. I think that it was about 6 per cent. to 7 per cent. Under the Conservative Government of opportunity and entrepreneurial skill, unemployment has doubled. In my constituency, which is part of the Bradford metropolitan district council, there are 4,000 people chasing 80 vacancies. That is another achievement by this Conservative Government blessed with entrepreneurial skill and the choice that they offered to the people.
The cuts will have a ripple effect throughout the Bradford economy. Bradford is suffering because of textile cuts. During the past two years thousands of jobs have been lost in the textile and engineering industries, so the closure of departments in the university will have a serious effect on Bradford. Brian Burkitt, senior lecturer in economics at Bradford university, has said:While the Government shed crocodile tears in sympathy for the unemployed, by their cuts in public expenditure they increase the dole queue, directly and indirectly, because suppliers and contractors to the university will suffer as a result of the cut. A lot of the money that has been cut would probably have found its way into the private sector through the contractors who carry out work for the university. In turn, they will have to make people redundant. By their actions, the Conservative Government are hurting the very sector that supported them in 1979. That support has almost entirely disappeared in many areas of industry and when one asks around one finds few who admit to having voted Conservative. The university court passed a special resolution. At the special meeting of the court on 7 October, only Labour Members of Parliament troubled to turn up. However, the meeting was important, because university courts are not normally given to expressing views that are critical of the Government of the day. I do not want to detain the House for long, so I shall read only two brief passages—[Interruption.]. Despite the great pleas to the contrary, I shall soon conclude my speech. The first section of the resolution states:"The University Grants Committee requests a cut in student numbers from 4,360 to 3,530, while the university's lower financial allocation implies a loss of 180 academic staff (from a total of 495) and 280 non-academic staff. If these cuts occur, spending power in Bradford would fall by over £5 million a year at current prices. Lower incomes and higher unemployment will inevitably result."
One of the good things about that section of the resolution is that it refers to "universities". Bradford recognises that it is not unique in facing the critical situation imposed by the Government. The concluding part of the first section states:"This meeting of the Court of the University of Bradford expresses grave concern at Her Majesty's Government's determination to reduce substantially financial provision for universities, thereby significantly diminishing the opportunities for access to higher education, undermining the standard of service for those who do obtain places and threatening the continued employment of large numbers of university staff."
That sums up the situation well. As the Minister knows, representatives of the CBI frequently give subservient approval to the Government's policies. However, its critical edge is more and snore apparent as the Government pursue their disastrous economic policies. Nevertheless the CBI is associated with the Conservative Party and with supporting the Conservative Government. The representatives of the CBI present at Bradford university's court meeting voted For that resolution and supported it. The resolution was passed unanimously. All strands of opinion united and told that Government that the decision was bad and should be changed. The decision is accepted as bad not only for Bradford university but for the whole of university education. When the Association of University Teachers lobbied Parliament the Labour Party drew up a statement. We said:"We make a special appeal to the Government to take steps to mitigate the exceptional punishment being inflicted upon the University of Bradford, which we consider to be both unjust and irrational in view of its dedicated and successful efforts, with which we are proud to be associated, to respond to the demands of successive governments during the period of expansion."
That document gives a fairly lengthy explanation of our views and towards the end it states:"Within higher education we would reverse the present contraction of the universities, so that they can serve a wider section not merely of the traditional student age group, but more diverse needs of mature students and part-time courses as well".
That represents a positive commitment for the higher education sector and a complete reversal of the present disastrous cuts which universities such as Bradford have to face. It depends not on any illusions created by the SDP—not on any absence of policy from that source—but on the election of a Labour Government who are committed to carrying out policies to reverse the draconian cuts which the Government are imposing. That will happen when there is an election; and the sooner the better. In the meantime, the basis of the Opposition's case tonight—and to some degree that of Conservative Members—is that in the short-term the Government would do well to re-examine the policy and to say to the universities, "We will reverse the cuts, but, first, we will consider them over a longer period." Oil and coal are finite, but people are infinite. That is one of our enduring assets. We hope that that will continue forever, and they will unless the Government's lunatic defence policies are brought into play. Let us hope that people will be allowed to go on into infinity. They are the asset above all that we should be supporting, and I hope that the Minister will show some chink of change in policy. I suspect that he will not and, therefore, the change will come when a Labour Government are elected at the next general election dedicated to improving the higher education sector and reversing the present disastrous policies."We believe that the University and public sectors of Higher Education have a vital role to play in the revival of our economy and the improvement of our society. Our policies and our purpose are, therefore, dedicated to securing expansion and change and we welcome the assistance and advice of teachers and others in Higher Education in fulfilling those aims."
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We have had a full debate, starting with speeches about three universities but covering the range of university cuts and higher education.
I start by making three general points. My hon. Friends have a problem when they start saying that they accept the general principle that there should be cuts, even in universities, at a time of deep recession, and properly continue to argue the specific case for specific universities with which they have connections. That is understandable, and if I were lucky enough to be on the Back Benches now I have no doubt that I would be arguing the case for Bristol university. However, if one accepts the case that overall cuts, even in the universities, have to be undertaken, it behoves hon. Members to say in what circumstances they could possibly welcome the cuts in the institutions that they represent. The UGC's position is crucial in the realm of university policy and it is no good saying that we support the principle but oppose the individual proposals properly advanced within it. The hon. Member for West Stirlingshire (Mr. Canavan) accepted, as have others, the consequences of that and proposed an alternative system to the UGC. That is a consistent policy. Those who aim to maintain the system by which we protect the universities from direct State management by the UGC must recognise that it is a self-denying ordinance in the sense that the House does not directly intervene in the distribution of funds. If one accepts the principle, it is difficult to oppose the individual distributions.First, I am not in favour of direct State management of universities, but if there is to be any cushioning body such as the UGC—quango that it is—my main point is that it should be truly representative of the whole university sector rather than part of it. The Minister has not explained why the Government have picked on the universities and imposed the worst cuts on those which are not represented by the UGC.
If I pursue too far the interesting interventions made by Labour Members, we shall not make progress, but I will respond to the hon. Member for West Stirlingshire. The UGC in its present form is not designed to be a representative institution in the accepted sense. It is designed to be representative in terms of subject and programme areas. The three universities that we are discussing principally have representatives on the UGC's sub-committees, but their purpose is not to represent those universities. They exist for their expertise in certain subjects. If we treat the university system as a whole and approach the distribution of funds within it on a programme and subject basis, that is a justifiable way of proceeding.
A great deal of exaggerated criticism has been made of the UGC. It has been said that it has a systematic bias against the former colleges of advanced technology. That would be surprising if it were true. The chairman of the committee was the vice-chancellor of the City university, and among those which have been relatively favourably treated within a stern programme have been Loughborough and Bath, which are both colleges of advanced technology. The hon. Member for West Stirlingshire talked about the UNESCO figures and the overall participation rate in Britain in higher education. I have studied the figures and I have asked civil servants in the Department to consider them. As always with comparative international figures, there are difficulties. For example, many in Britain train as accountants, and they train in firms. In other European countries they train in education institutions. If we broaden categories to include those who attend State institutions of education in other countries, our figures can be manipulated, as it were, to make them appear very much better. I urge some caution in the use of the UNESCO figures, but I accept that in the university sector, in which I include degree-giving polytechnics, we probably have a lower rate of participation than the rates achieved by certain other countries. It was argued by many Labour Members, including the hon. Member for Keighley (Mr. Cryer), that at this time of all times we should be seeking more places and making provision for more expenditure on education; we should be spending more on a range of valuable public provision. The hon. Member for Keighley will know—he was a member of the Labour Government who introduced, as he described them, Draconian expenditure cuts—that no public provision can be immune.rose——
I must proceed. The hon. Gentleman made an excellent speech and many interventions.
The Robbins principle was brought into the debate, quite properly, by the hon. Member for West Stirlingshire. If it were possible by the promulgation of a principle to create the resources to meet the desired objectives, we would not be in our present difficulties. It is easy to promulgate a principle to create an objective, need or national requirement, but we have not produced the resources with which to meet the need.Will the Minister give way on the Robbins principle?
The hon. Member uncharacteristically has not been in the Chamber throughout the debate. We have had some discussion about the Robbins principle in the Select Committee. It is difficult for us to remember it off the cuff, but we remember it in the end with the help of our respective advisers.
Will the Minister give way?
The hon. Gentleman has not been in the Chamber throughout the debate. There will be many opportunities to discuss the matter with him.
I turn now to the constitutional position of the UGC in respect of the points made by the hon. Member for West Stirlingshire about the university in his constituency. I have no doubt that those points have been made forcefully by the principal of Stirling university in his second round discussions with the UGC. When I met the principal of that university recently in Edinburgh, he made the points forcefully to me. If we are to stand back from the intention of civil servants and Ministers making detailed distributions, I cannot enter into the discussion of the particular cuts and distribution of funds. The hon. Member for West Stirlingshire and my hon. Friend the Member for Newbury (Mr. McNair-Wilson) mentioned the question that has been at the forefront of much discussion recently—should we slow down the process? Some people have realised that even the university programme cannot be immune in a recession. The chairman of the UGC has said that the speed at which we are going imposes such disorder and dis-economy as to be unacceptable. He suggests that we would do better by going slower. The Secretary of State today, in a written answer, told the House that he has found some more money—£50 million in the next year—to restructure the university system and to help with the amelioration of the rundown——The rundown!
—of the system to the level that we can afford at present. It will still be a fine system, as was said by the chairman of the UGC to the Select Committee. One could run a first rate university system at almost any level. Unfortunately, we are forced to run a slightly smaller one.
The Secretary of State has made it clear that he believes—I am sure that he is right—that it would be much better to introduce an element of flexibility into the system rather than to distribute the money across the board in a general slow-down. The money will go to the UGC to be distributed following discussions with the universities either for redundancies or, in those cases where the argument can be made to stick by the university, in terms of a slower rundown. It will turn out to be rather more difficult for those individual institutions to make the argument when the numbers are before them than it is to make the argument in general terms. However, the UGC will undoubtedly listen to those cases, even if they are not easily proven. That is a better way of approaching the matter, rather than a general slow-down of the system. Some universities have suffered the problem of the fall in numbers of overseas students. They are not helped by a slow-down in the process. The fall-off in income is once and for all. Other universities would have few problems and perhaps no cuts over a five-year period. It is surely better to apply such limited resources as we have to specific problems in bilateral discussions with the UGC. It will not be easy for individual institutions to prove in hard figures that within the time scale to go slower will save more money.Is the hon. Gentleman saying that the £50 million is to help with redundancies or to help the UGC to effect the economies over a longer period, or a combination of both?
It is a combination of both. It is the first tranche of such funds. The Secretary of State said that the money was specifically for restructuring, including the cost of redundancies.
It is an historic occasion. The hon. Gentleman consistently refers to the running down of universities. This is the first time that I have heard in the House a Minister honest enough to say what the Government are doing. After this first tranche there will be a second and third, because the Government are bent on running down our university system.
The hon. Gentleman greets my words with more enthusiasm than he should.
I am appalled; I am not enthusiastic.
In last year's terms the Government spent about £1 billion on the current grant to universities. By the end of the period about £200 million a year will be saved out of the programme. We shall have a smaller system at the end of the period with 20,000 fewer student places. The cost of the transition will be considerable, and we are finding more money to ameliorate the situation.
After close consideration of the figures, we do not believe that a generalised slow-down in the programme is the best way to apply the additional funds that we can find. The best answer is to allow the UGC flexibility in its bilateral negotiations with specific institutions. The hon. and learned Member for Bradford, West (Mr. Lyons) gave the Social Democratic Party view.Will the Minister give way?
I paid considerable attention to the hon. Gentleman's speech, and now I must deal with the points made by other hon. Members.
The hon. and learned Gentleman dealt with the difficulties caused by the drop in the number of overseas students. The hon. Member for Keighley argued the case in terms of foreign policy. The case for bringing students here should not be to compete with Moscow. Primarily it should be in the interests of the students. However. the Government's position is well suited to follow the hon. Gentleman's argument. The prime responsibility for the distribution of funds to overseas students rests with the ODA, which can suggest where aid funds are best applied, under the aegis of the Foreign Office, which is the best defender of our international interests.I was not justifying such an attitude, but in future the Government may blame the malevolent influence of the Communist bloc in catering for students, whereas it is their own malevolent attitude that is the problem. Their massive expenditure of defence should go to universities for indigenous and overseas students.
The hon. Gentleman knows that the Government have put considerable funds at the disposal of the ODA in the current year—about £42 million—to restore the level of students to the previous numbers, which should help to mitigate some of the ill effects about which he spoke.
The hon. and learned Member for Bradford, West referred to Mauritius. As the hon. Member for Keighley will know, there is very little public expenditure that does not have some reasonable justification and if Governments are compelled to cut public expenditure there are real costs. By the exact application of funds through the ODA and through the bursary and scholarship schemes for students of outstanding merit from overseas, we are seeking to minimise those costs. It behoves SDP members to cast their minds back to the agenda set for the universities by the right hon. Member for Crosby (Mrs. Williams) in her famous 13 points of 1969—an agenda for retrenchment that was far more radical than any policy that we are now pursuing. It included some rather hair-raising schemes, such as two-year courses, and so on, which this Government do not intend to follow. It behoves them also to study the words of the distinguished former vice-chancellor of Cambridge, the leading educationist in their party, Sir Peter Medawar, who had some harsh words for the universities in his retirement speech about their response to Mrs. Williams' 13 points. Members of the SDP are rather doubtful friends to the universities in this regard because they have set a tough agenda, which they are pursuing vigorously. My hon. Friend the Member for Lewes (Mr. Rathbone) supported the UGC, and I am grateful to him for that. I am sure that his point is valid. He asked us to consider the implications of an approach that was based on criticisms of the UGC. Those who criticise it must say what alternative system they would introduce and on what principles it would work. The hon. Member for West Stirlingshire would have an institutionally based system with representatives from each university. That might work better, but in some ways it might not work as well. The bigger universities might squeeze out the smaller universities, but that at least is a fair argument to pursue. Hon. Members like the hon. Member for Keighley who simply criticised it in rather violent terms have a duty to the university system and to the UGC and those who serve it to say what alternative they envisage.Will the Minister give way?
No, I shall not give way to the hon. Gentleman.
rose——
No, I shall not give way.
I could pick up the Mace and wave it around.
The hon. Gentleman should not do that or even threaten to do it.
The hon. Gentleman has many opportunities to explore these subjects. He has not been in his seat for much of the debate, and I think that I should proceed.
The hon. Member for Huddersfield, East (Mr. Sheerman) made an impassioned speech. I have no doubt that many of his points about Bradford university should be put strongly to the UGC. It is working within extremely tight resource constrictions. However, it would be wrong of me to pursue individual points about particular universities. The hon. Gentleman welcomed the triumph of the Open University. Having visited it recently, I congratulate it on its success. An Open University team of which I was a member was beaten ignominiously by Loughborough university, which I am glad to say has been well treated by the UGC in these distributions. The hon. Gentleman challenged me to go down the road to Houghton Street—something that I have done recently. I had a useful talk with Professor Dahrendorf. The hon. Gentleman should be a little careful of the language that he uses about the quality of overseas students. There is a point here, and I acknowledge it straight away. There may be, for example, among the figures this year—which have not dropped by as much as was expected—more single-year students, and we may not be able to predict the future as we would if they were three-year students. There may be more American one-year students among them. The hon. Gentleman should be a little careful in damning them all as Arabs, millionaires and so forth. There may be some very good Arab millionaire students among them, but there are some very serious students at the LSE and at other universities. He should not make more difficult the task of universities by saying that they are trying to lower their standards or gather in any old student they can find. It is welcome that the numbers have fallen slightly less this year than expected, and that may reflect the fact that fees are rising also in other countries. Our universities are by no means the most expensive. There are universities in the United States which are more expensive than ours, and overseas students are controlled in many European countries, not so much by cost as by quota, which has the same effect and is a form of price-rigging. I think that I have briefly referred to most of the main points made in the debate——The Secretary of State gave a very important written answer earlier today to the hon. Member for Wokingham (Sir W. van Straubenzee). I referred to it in my speech and asked some questions which have not been answered. The answer referred to an increase of £60 million in the universities' grant for this year, and £50 million for next year for what he called restructuring, including redundancies. What on earth does "restructuring" mean? It seems to me that "destroying" would be a better verb to use than "restructuring". Can the Minister offer any hope for universities such as Stirling, Aston, Bradford and Salford, which are seriously threatened? How much of that money, if any, is likely to go to them in some form of rescue operation, or is all this money to go in running down the system, to use the Minister's own terminology, rather than to save it?
The money is projected to maintain the rate of contraction predicted in Cmnd. 8175, last year's White Paper. It is money that is aimed at dealing with the redundancy costs in part, and in part where it can be shown that there is a way of saving money by approaching the matter from a different path. Some of that money could be applied to buying time. This is not an abandonment of the policy of Cmnd. 8175; it is an acceptance of some of the costs of the speed of rundown. That is what the money is applied to.
Will the hon. Gentleman give way?
No.
My point is crucial to the whole policy——
I shall not give way. I am sure that the hon. Gentleman, who controls a powerful Committee in the House, will find a way——
On a point of order, Mr. Speaker. The Minister is misleading the House by referring to Cmnd. 8175. I think that he is referring to the wrong document. If he is not referring to the wrong document, he is trying to obscure the issue from the public. They do not know what Cmnd. 8175 is, and it is dishonourable conduct to try to obscure the issue by referring to obscure documents——
Order. That is not a point of order. I do not know what Cmnd. 8175 is either.
I apologise, Mr. Deputy Speaker. I spend so much of my time in reading last year's public expenditure White Paper that I forget that others may not have read it.
The policy remains the policy of that White Paper. The Government accept that there are costs which arise for the universities in that contraction, and the Government are moving to meet those costs. No one welcomes the pressure on a programme. The fact that the university programme has, overall, been roughly protected—Nonsense.
In the past 15 years there has been, as I am well aware, a tightening of the unit of resource, but the university programme in real terms has been protected through the various economic difficulties that the country has faced. That shows the commitment to it by hon. Members on both sides of the House. It shows that, when a Cabinet feels that it can no longer wholly protect the university system, the economy is in deep recession. No one welcomes that; but the pressures come not from the Government but from the realities of recession.
Will the Minister allow me to ask one small question?
Order. The Minister has resumed his seat.
Disgraceful!
Rate Support Grant (London)
2.50 am
When I considered applying for one of the spots in the debate on the Consolidated Fund, I knew that the subject of rates and the rate support grant would be topical, as it always must be in London and various other areas. But I did not think that this subject would be sandwiched between two of the most important developments that have occurred on the London scene during this Session—the House of Lords judgment on the transport issue, and tomorrow's important debate on the wider implications of that judgment.
The judgment affects all Londoners who use public transport and all London ratepayers who may not use it but who pay for it. From reading the judgment as best I can in the short time that we have had—as a layman I do not profess to any specific legal knowledge—I believe that it applies not only to transport but to all local authorities that receive rate subsidies. I have not yet seen the reply that was promised to my hon. Friend the Member for Holborn and St. Pancras, South (Mr. Dobson) when he questioned the Under-Secretary of State for Transport during the debate last Friday. In that debate there seemed to be confusion on the Government Benches about the judgment. That confusion among Ministers was exposed again today by my right hon. Friend the Member for Barrow-in-Furness (Mr. Booth) in his application under Standing Order No. 9. He mentioned some confusions which will have to be clarified if the issue is to progress. I shall return to the judgment later. My constituents and I are concerned about other aspects of the rate support grant. No doubt some of my Hon. Friends will enlarge on how it affects their constituencies. Until yesterday it has been very difficult to ascertain the RSG position in London, particularly in inner London. It is still difficult, because we have not had a chance to study the full details of the settlement announced yesterday. We have been wondering whether more penalties would be imposed, and what they might be. Would there be a complete take-over of local councils by the Secretary of State? That was mooted in some quarters. Would Londoners be subjected to referendums, with all the difficulties and expense involved? How much or how little would local authorities be allowed to spend, who would determine it, and by what criteria? Those and many other questions remained unanswered until yesterday morning; and until we know more about the details and how they will affect local authorities some questions still remain unanswered. Yet we are only weeks away from the mammoth task confronting local authorities of trying to work out next year's expenditure and next year's rate assessments. I have tried to glean something from the discussions yesterday. As I understand it, the Secretary of State seems to be seeking a further cut of 4 per cent. in real terms. I know that it is difficult to bandy statistics about at this hour of the night, so I shall not use too many. In addition to that cut of 4 per cent. in real terms, local government grants have been cut from 59·1 per cent. to 56 per cent. Moreover, local authorities have been allowed only 4 per cent. to cover wage settlements when the first about which we know—the offer to manual workers—is 6·9 per cent., so they are already 2·9 per cent. behind. From reading initial reports, I know also that local authorities have been allowed 7 per cent. for inflation when everyone knows that it is running at 12 per cent., so that means further cuts. The Government are also imposing rent increases amounting to £2·50 per week on council tenants with extras for local administration and maintenance costs. From reading the reports, I also believe that the Secretary of State himself admits that it will be a massive task to achieve the targets set by the Government. I know that in many cases it will be not a massive task but an impossible task. The areas with the most difficulty and which will be penalised the most will be the inner city areas. The inner city areas of Liverpool, Sheffield, Manchester and certainly London will feel the worst effects of the latest package. One is reminded of the Prime Minister's and the Secretary of State's crocodile tears and alleged concern about the difficulties of inner city areas. So much for the "Minister for Toxteth". He has just given a great deal of credibility to all the so-called cynics in the local communities who said that nothing would come of all the activity in which he engaged after the events of Toxteth and Brixton. They will be proved right—indeed, they have already been proved right—if this package is considered. They were quite right to say that nothing would come except more punishment—certainly no more resources directed towards the serious problems that existed then, still exist now and are indeed worsening. They were therefore entitled to be cynical and worse. I am therefore inclined to agree with the chairman of the Association of Municipal Authorities who said yesterday morning:I know a number of councillors who have been in that frame of mind for some time and who will be considering in the run-up to next May's elections whether they can any longer serve their communities. Some of us fear that we shall lose some of the best and most experienced councillors who have never known such Government interference and restriction from the centre. The London borough of Camden is operating without any rate support grant, because it was unable to conform to the limits demanded by the Government and was unwilling to reduce services to the levels that would have been required. Following yesterday's announcement, it seems that it will be in the same situation next year. In order to qualify for even the minimum grant, Camden would have to decimate some services, abolish others and create massive redundancies. A study of the statistics in Camden shows that there is no way that an authority such as Camden, with all the problems facing it, can meet the Secretary of State's targets. It will face further difficulties over the RSG. The whole situation is becoming farcical. I expect that in the next few days, when other authorities have done their sums, there will be widespread alarm, not just among Labour authorities at which all the spite and venom has been aimed, but among Tory and Liberal authorities that were, like the London borough of Camden, democratically elected to decide how best to manage local affairs with the minimum of interference from the centre. What has emerged so far, and what will be exposed further as the debate continues, is the subjective approach of the men of Whitehall to grant-related expenditure assessments. The failure of those at the centre to understand or accept the problems of inner cities has already had unfortunate consequences. The latest instalment of cuts will do nothing to help an already difficult situation. The Secretary of State's obsession that London was treated too favourably by previous Governments does not stand up to examination. We have gone over that ground in previous debates. The Secretary of State has always claimed that the Government were seeking new powers to control the actions of only a few local authorities—the "big spenders", as he puts it in his simplistic way—but I understand that local authorities such as Barking, Southwark, Islington and Hammersmith, which conformed, made the necessary cuts and met the targets, were told yesterday that they have to make cuts of another 7 per cent. The reward for complying with the targets is yet more cuts. Is it not becoming increasingly apparent that taking powers that undermine the democratic process of local government for party political reasons is unreasonable and irresponsible? If some parts of the Law Lords' judgment on the GLC fares policy could be applied to the Government's actions, the Secretary of State might even be surchargeable. The policies of the alleged offending councils should, and could, have been submitted to the electorate at the next election, which is not too far distant, and the people of London should have been allowed to decide how their local authorities should function. However, that is apparently not how the Government see matters. The Government are determined to destroy local democracy as it has been known for a long time. All their decisions point in that direction. In spite of protests from all the major organisations covering every aspect of local government, the Government have blundered ahead with their vicious policies aimed at local government spending. Voluntary organisations are concerned about the increased problems that arise from the policies. They bear the brunt in many instances of the effects of the policies. Their concern arises from the reduced resources available to them from local authorities. Organisations that care for the homeless, alcoholics and those affected by most of the serious problems that exist in inner cities to which the Government have given no serious consideration face financial difficulties and all problems attendant thereon. The Scarman report and other surveys indicate the need for more, not less, spending in the inner cities. This does not mean simply restoring part of the cuts already made. It means new money on top of restored cuts if local authorities are to cope with the increased burdens and commitments imposed on them as a result of the Government's policies. The Government have withheld about £125 million this year from the Inner London Education Authority. All hon. Members recall the efficient and expensively orchestrated campaign waged against London's education services and led by the hon. Member who is now the Minister for Industry and Information Technology. Inner London is the only education authority in the country that receives no Government grant. The new cuts could worsen the situation drastically. It is obvious, if the cuts go ahead, that the number of teachers will have to be reduced. Vacancies will not be filled. Key subjects may not be covered. Young teachers, who are already experiencing difficulty in obtaining positions, will find that it is almost impossible to get a job. Class sizes will rise. I believe that the Secretary of State for Education and Science has said that there will be 13,000 fewer teachers nationally in 1982–83 than in 1981. The supply of books and equipment, already seriously affected, will worsen if the cuts go ahead. Nursery education, which has always been a top priority for the Inner London Education Authority, is at risk. London has set itself the target of providing nursery places for all who want them—and why not? The budget cuts will bring to a halt this humane and imaginative programme, and force a reduction in the number of nursery places that are available at present. School buildings will be seriously affected by any further cuts. They have already suffered dramatically. Redecoration and outside maintenance have had to be postponed or stopped. Gradually, and perhaps more rapidly than we would wish, the schools will deteriorate into the slums that they were, not so very long ago, when we used to talk about sink schools and slum schools. That is what these penny wise, pound foolish cuts are doing. The ILEA grants to students will have to be cut dramatically. Almost all grants, with the exception of those specifically decreed by the Government, will probably cease as a result of the further cuts. I have received more letters in recent months on the subject of evening classes and adult education than on any other subject since I have been a Member of Parliament. The numbers of people who attend those classes in London must be the biggest in the country, and in my constituency they are probably one of the biggest in London. The classes fulfil a real need. They fill a gap. They provide an essential service. Her Majesty's inspectors of education praised this aspect of the ILEA programme as being the best of its kind in the country. We want to keep it like that, and Labour Members are determined to do their best to ensure that it stays that way. However, if the Government have their way, that outstanding asset of inner London education will begin to disintegrate. Something that has taken years to build will be destroyed at a stroke. Another essential service is education for employment. It relates to the country's major social problem. The ILEA is doing its utmost to alleviate the effects on the young people of London in strengthening the career service, organising many more school and college courses, and expanding the youth service. Those are all a necessary part of our approach to this social problem. It all costs money. When the money is withdrawn, the essential service, about which we have heard so much from the Prime Minister and the Secretary of State, is withdrawn. Those services will suffer as the expenditure is curtailed. So the catalogue of disaster could go on for ILEA. I shall say a brief word about another issue. I shall quote from an excellent research publication, produced by Age Concern, called "Services for old age: A growing crisis in London", by Tom Snow. He says:"The time has come when all responsible local government representatives will have seriously to decide whether they can any longer serve their community because of the severe restrictions placed on them by Central Government."
"By comparison with the country as a whole, the pattern of help given to older people in Inner London is markedly different. While much less help comes from relatives, friends, neighbours, community health services and general practitioners, more comes from social services and through hospital beds. It is significant that the services which can substitute for the absence
None of us could have put it better. We know the pattern of services to the elderly in inner London. We know the difference between the conditions that our older citizens in inner London live in, where families have grown up and left home and where conditions exist which perhaps do not exist in other parts of the country. Most of us will agree with the sentiments expressed in that report. I return to the subject of transport and the recent judgment of the House of Lords on which I said I wanted to touch at the end of my remarks. I intend to ask the Minister one question, and I hope that he will be able to answer it in advance of tomorrow's debate. Again I apologise for my lack of legal knowledge. In trying to understand this complicated series of opinions by the five experts——of family are those most heavily used in Inner London—hospitals, old people's homes, meals on wheels and home helps.…However, it is clear that Inner London has not been compensated for the severe isolation of its older population. It is therefore reasonable to suppose that a significant part of its loss of rate support can be accounted for in this way. Existing levels of home helps, meals on wheels, old people's homes, day centres and other vital services for older people must now be in jeopardy. It is extraordinary that the attempts made by these local authorities in the past to meet the much greater needs of their older populations should now be undermined by formulations specifically intended to put the distribution of services throughout the country on a more rational footing."
They are not experts.
I mean the five Law Lords. One of their subsidiary findings was that even if the power to subsidise extended to making good available losses,
In the Minister's view, is that ruling likely to affect other services, such as social services, housing and all other subsidised services? 'What is the hon. Gentleman's interpretation of the balance? A question that many people are asking is why the legality of the GLC majority group's manifesto pledge was never challenged during the months of what must have been the most widely publicised and argued issue in Europe, let alone just in this country. Not once was the legality of the pledge queried. I dare say that the Minister will be able to explain why there were no queries. I hope that he is in a position to express a view. Like the present deputy leader of the GLC, I believe that the announcement by the Secretary of State yesterday morning amounts to another package of financial misery for London and that local councils will be unable to meet the impossible targets set by the Secretary of State and his Cabinet colleagues without making crippling cuts in essential services. I hope that the Opposition will campaign inside and outside Parliament to bring about an early general election when all the issues that will be raised in the continuing debate on the Lords judgment and on the rate support grant can be put before the electorate."the GLC's discretion must be exercised reasonably and dial for a variety of reasons it was not exercised reasonably in this instance, regard being had to a local authority's duty to hold the balance fairly between the ratepayers and others to whom it owes a duty."
3.19 am
I congratulate the hon. Member for St. Pancras, North (Mr. Stallard) on initiating this short debate. I understand that he has recently become chairman of the Labour Members for Greater London. I congratulate him on assuming that office and wish him well. He follows in the footsteps of the hon. Member for Hackney, South and Shoreditch (Mr. Brown), who has found new political pastures. The hon. Gentleman brings a markedly less militant tone and manner to our debates. We welcome that and look forward to many contributions from him in the debates on London in the rest of this Parliament.
The hon. Gentleman understandably spent some time on the question of the rate support grant announcement. If difficulties arise, as he suggested they would, from the 6·9 per cent. wage award to manual workers, the local authorities have no one but themselves to blame. Many leaders of Conservative authorities are deeply unhappy about the level of that award. Similarly if, as the hon. Gentleman contended, the Inner London Education Authority receives no grant at present, that is entirely the fault of ILEA, which has refused to conform to Government spending guidelines. Of course, as we know from many past debates, ILEA is the sacred cow of Socialists in London. Yet by any objective criterion it is a grossly overspending authority. Even given the very special conditions of inner London, which we all acknowledge, the figures show that by all the tests—expenditure per pupil in primary or secondary education and expenditure on books and equipment—the spending in ILEA is substantially greater than the average in the United Kingdom as a whole. That cannot be defended. The hon. Gentleman described the rate support grant announcement as a package of financial misery for London, echoing the remarks of the deputy leader of the Greater London Council. That is a travesty of the announcement by my right hon. Friend the Secretary of State for the Environment. This year's settlement is one of the most sensitive and sensible for a number of years. The Government's aim is clearly to relieve the pressure on those councils that have already made significant cuts. That in itself is a welcome change from the past, when, as we know to our cost, the prudent authorities were penalised along with the spendthrift authorities. This year marks a welcome break from that. I see from the preliminary comments about the statement that a number of inner London boroughs—Kensington and Chelsea, Westminster, Wandsworth—will be required to make cuts substantially below the average. In outer London, my own borough of Bromley, which has recently been admirably in the news, is in the same category. Clearly this is a reward for good housekeeping in the past. It is a significant and satisfactory feature of this year's rate support grant settlement.While the hon. Gentleman is praising the London borough of Bromley, will he give some indication of its willingness to alleviate the serious housing shortage in inner London? Given that the London borough of Lewisham, as just one example, has a serious housing shortage which it cannot possibly meet on its own, how many places is the London borough of Bromley willing to provide to alleviate the problem in a proper manner, out of inner London into outer London?
I cannot speak for the chairman of the Bromley housing committee on such a matter. I am sure that Bromley is anxious to be helpful in these matters. Our experience is that many people in inner London were not anxious to come to Bromley, to leave their roots—
I have a list of 3,000 in Lewisham.
The hon. Gentleman claims to have a list of 3,000 people in Lewisham who would like to live in Bromley. Perhaps he will send the list to me. I think that is a dubious figure. I cannot explain the exuberance that he displays.
I do not want to live in Bromley; they do.
Experience shows that many people in inner London do not want to be uprooted from their friends and relations in their own areas. They have no wish to come to Bromley.
The hon. Gentleman referred to the reward to councils which were not profligate. Barking, Islington, Southwark and Hammersmith councils met the targets. They did everything that they were asked to do. They were not profligate. They were good, loyal councils. Yet they have been asked to cut a further 7 per cent. What reward is that?
I have not studied the figures for every London borough. I understand that some Labour-controlled boroughs have come out of the settlement reasonably well. I do not have the detailed figures for every borough, but I have them for the boroughs that I have specifically mentioned.
Among the authorities which will be required to make further substantial cuts is the Greater London Council. Looking at the range of expenditure that it undertakes, who can say that there is not scope for economy within its budget? I shall give some examples of where cuts could be made without the decimation of services that the hon. Member for St. Pancras. North suggested would follow in Camden. In the first four months under Labour, the GLC's construction branch lost £2,700,000. "The Londoner," which purports to be an official GLC magazine but in reality is a squalid party political broadsheet, costs Greater London ratepayers £500,000 a year. I note that the GLC has now appointed a new editorial team of three journalists and a secretary at an additional cost of £72,300 a year. The Labour-controlled GLC has created some new posts. There is a principal race relations adviser, whose duties are remarkably ill-defined, who draws a salary of £22,000 a year at the ratepayers' expense. There is a chief economics adviser—a former adviser to the Tribune group in the House—who draws a salary of £25,000 a year at the ratepayers' expense. Those are jobs for the boys with a vengeance. How can Opposition Members defend such expenditure when some councils are threatening to make cuts in services which will affect ordinary people? They should get their priorities right.When the hon. Gentleman spews out such muck, should he not bear in mind that the Government appointed Sir John King chairman of British Airways—a place man of the Conservative Party—to preside over that airline's destruction through privatisation? Is that not a far more dangerous, damaging and disgraceful appointment than anything that the hon. Gentleman has referred to?
I know nothing about that appointment, except that it was to a job that already existed. However, new posts have been created within the lifetime of the present administration at County Hall.
Many of my constituents and many Londoners are infuriated because Mr. Livingstone appears to be a soft touch for every fringe group and nut case in town. He gives £100,000 to "City Limits", £12,000 to a stridently feminist publication that goes under the name of "Sheba" and a grant of £3,000 to an organisation known as "A Woman's Place". Among the groups using that organisation's facilities are those with such exotic titles as London Lesbian Offensive, Lesbian Left, Rape Crisis, Revolutionary Feminists, Women Living with Men and Feminists against Sexual Terrorism. That is the way in which ratepayers' money is being used. Before Labour Members or members of the GLC squeal about any economies forced on them by the Government, they should look more closely at the way in which other money is being spent. That approach to public spending and to the ratepayer's purse and pocket is causing resentment throughout Greater London and has led directly to the upsurge of feeling against the Left-wing Labour administration at County Hall. It is important to realise the extent of the overspending and to acknowledge thereby the justification for the Government's tight rein on spending. Several years ago, a Labour Secretary of State told local authorities that the party was over. Since then there has been a positive orgy of overspending by Labour-controlled authorities throughout the country. That is the message of this debate, which will not be lost on the electors of the Greater London boroughs when they go to the polls next May.3.33 am
The hon. Member for Ravensbourne (Mr. Hunt) normally makes a good deal of sense——
That is not true at all.
The hon. Member for Ravensbourne usually makes sense, but he has been distracted by his determination to make a heavy assault on Mr. Ken Livingstone, who is to be the scapegoat for all London's follies. Those follies were in existence long before Mr. Livingstone took office. I do not agree with Mr. Livingstone on several issues, but it is wrong to suggest that he and his team are solely responsible for some of the problems that afflict London. To acquit the prime vandal of all time—the Secretary of State for the Environment—of any charge of negligence of London's affairs is to stand truth on its head. That is unworthy of the hon. Gentleman and I am sorry that he was so selective in his condemnation.
It is also noteworthy that, because the debate happens to come at a particularly difficult hour for hon. Members, members of the Liberal and Social Democratic Parties are absent. They do not like to turn up, as we know, after midnight—that is against all their principles—and that perhaps illustrates the degree of interest they have in the affairs of London. Whatever disagreements I and my hon. Friends may have with Conservative Members, at least we have turned up to express our points of view and to represent what we think is right in the interests of those we are privileged to represent in the House. I do not want to concentrate my remarks on the questions arising from the judgment affecting London Transport and the Greater London Council, but I want to repeat something I asked the Minister the other day and to which he did not respond concerning a matter which causes me some concern. I start from the presumption, which I do not think is unreasonable having regard to the history of the case, that those responsible for initiating the policy acted in good faith. It does not matter in that respect whether one agrees or disagrees with the policy; it is clear that they acted in good faith and presented that policy to the electorate. It was the subject of considerable consultation and it is clear that they took legal advice. The difficulty of the legal question raised was borne out by the fact that they succeeded in the court of first instance. They failed in the Court of Appeal and the House of Lords, admittedly, but it was necessary for both those courts to reserve their judgments, which showed the complexity, technicality and difficulty of the points of law which fell to the courts to be decided. I should not go into the arguments on whether the ultimate judgment of the House of Lords was wise or right. If one accepts that those responsible for initiating the policy acted in good faith, what is the difference between that case and the one affecting the Secretary of State for Social Services, on whose behalf a Bill of Indemnity was introduced called the National Health Service (Invalid Direction) Bill in March 1980? My hon. Friend the Member for Lewisham, West (Mr. Price) and I raised this point during the recent debate and the Minister did not respond. However, I want to draw the Minister's attention to a statement made by the then Secretary of State for Social Services on Second Reading of the 1980 Bill. He said that the BillI ask again, because I received no response before, whether it is not right that, if the GLC members believed that they were acting lawfully and in good faith, they should be given similar protection to that afforded with almost indecent haste to the Secretary of State for Social Services. If the Government are not prepared to do that. whatever they may think about Mr. Livingstone, his friends, Sir Peter Masefield, or those responsible in London Transport for initiating the policy, I charge them with applying double standards. It is not right that councillors who act in good faith should be punished in this way. I turn to the Secretary of State for the Environment, who is rather like Tommy Cooper without——"is retrospective because it seeks to protect all those involved in actions which they and I thought were valid which now burn out to be invalid. I did what I thought was lawful. Now that the High Court has ruled otherwise I have accepted its ruling and seek only to ensure that those who have unwittingly acted unlawfully should not be penalised."—[Official Report, 11 March 1980; Vol. 980, c. 1160.]
Before my hon. Friend——
My hon. Friend is spoiling my joke,.
I hesitate to spoil my hon. Friend's joke, as his jokes are usually of the best.
We are sorry, too.
Does not my hon. Friend think it extraordinary that the Government should display such double standards? They are prepared to bail out their own mates while refusing utterly to bail out others who are in a similar position. The Under-Secretary of State chooses not to intervene on this issue. Does my hon. Friend agree that the Minister should intervene?
I am always happy to give way to the Minister. If he will respond to this issue specifically, I shall be more than grateful.
The Minister is dumb.
It is a pity that the Minister chooses to remain silent.
rose——
The hon. Gentleman is a poor substitute.
I am not a substitute for anyone. Does the hon. Gentleman agree that there is clear evidence that the leaders of the GLC are not always open to advice? Well established officers have told some of us privately that it is very difficult to get them to take advice. There is no evidence that suggests that they have accepted all the advice that has been offered to them on this issue.
It is wrong of the hon. Gentleman, who is normally sensitive to issues of this sort, to refer to private conversations, which is a clear breach of the confidence that has been reposed in him.
Secondly, I suggest that there is no evidence that the legal advice that was tendered to those responsible for the GLC's policy was ignored wilfully. There is not a scintilla of evidence to support that proposition. It was never suggested that the policy was illegal before Bromley brought the action. The hon. Gentleman cannot hide behind allegedly private conversations that he has had. He must acknowledge that a difficult point of law was involved. If it was not, how did it come about that the GLC and the London Transport Executive succeeded at first instance and that there were reserved judgments at every other stage?Lord Denning and his team and the Law Lords in each instance found unanimously against the GLC. The hon. Gentleman is a lawyer and I accept his view that it was a complicated case. I read the judgment and I accept that. However, the courts found unanimously on two occasions that the GLC was wrong.
There was a finding against the Secretary of State for Social Services. What is the difference? In every litigious issue someone will find that he is on the wrong side of the judgment. That does not mean that people have not acted in good faith when they initiate an action that is subsequently found to be wrong in the courts. The Secretary of State for the Environment failed in the proceedings that were brought by eight London boroughs against him recently. Does that mean that he acted thoroughly in bad faith or in a way that was tantamount almost to criminality? The hon. Gentleman is talking out of his hat.
The Secretary of State for the Environment is similar to Tommy Cooper but without the gags. He consistently practises sleight of hand with the familiar dexterity of that comedian. Trick after trick goes wrong, but the difference in his case is that the results are far from harmless. People in the inner city areas of London are now suffering greatly because of the Secretary of State's redistribution of the rate support grant in favour of the shire counties. My constituents and others in inner London are unimpressed by the pretence that it was all in favour of greater equity. Was the hon. Member for Ravensbourne in favour of the redistribution? I doubt it very much.I am glad to put it on record that I was not in favour of that redistribution and argued strongly against it. I feel that this year our arguments have been responded to.
I shall come to that point later, because it is, as Samuel Goldwyn put it, genuinely bogus.
Perhaps 50 per cent. of my constituents live in local authority housing. They have suffered a rent increase in the first three years of the Conservative Government of 128 per cent. It far exceeds the increase under any previous Government. During the last three years of the previous Labour Government, it rose by 43 per cent. on average. My constituents must endure a penalty for having the effrontery, in the eyes of a completely discredited Government, to live in a council house or flat and not to wish—or perhaps not be able to afford—to buy a house privately or from the local authority. Inexorably, the penal policy will persist until the Government are expelled from office, which must ultimately be their fate. Those are the same people who would be expected to bear the effects of the cuts in education standards that are being demanded by the Government. My hon. Friend the Member for St. Pancras, North (Mr. Stallard) in an excellent speech—I join the hon. Member for Ravensbourne in congratulating him on it and on his becoming chairman of the London group of Labour MPs—spelt out the full effects of those cuts. The Government are trying to force through substantial reductions in the ILEA budget. The inevitable effect will be lower standards in our schools and colleges. There will be fewer teachers and substantially larger classes. There will be savage impacts upon nursery education. There will be a real effect upon the student community and upon the remarkable programme that ILEA has initiated for adult education. By a policy of pure vindictiveness, the Government have cut the ILEA budget by £125 million. Further cuts are now planned, stemming directly from the new system that the Government are trying to impose for financing local government. I have no doubt that those powers will enable the Government to impose cuts regardless of the will of the ILEA, of local feeling or of local requirements. All that is on the altar of the mad monetarist theories of the Chancellor of the Exchequer, his rather long-haired puppet at the Department of the Environment, and the strange gentleman at the Department of Education and Science. What a strange contrast are those policies with the remarkable words that we heard from the Secretary of State for the Environment at the last Conservative Party conference when he spoke of the plight of inner city areas. Regrettably, his is virtually all windy rhetoric as far as my constituents are concerned. His case for not only not helping but positively hindering the work of London local authorities is that some are gross overspenders. That accusation was repeated by the hon. Member for Ravensbourne. The Secretary of State is either wilfully ignorant or does not care about the deprivation that afflicts areas such as Hackney. The problems of Bromley, Wandsworth and Kensington are not even within measurable distance of those of Hackney, yet the right hon. Gentleman pushes ahead with his programme of cuts which so adversely affect the ILEA and the London borough of Hackney. We are tremendously affected by the fact that in less than three years the rate support grant has been cut from 62 per cent. to 56 per cent. To add to the injury, the right hon. Gentleman sought also to deprive the borough of its partnership money. When the attempt was challenged in the courts, the brave Secretary of State capitulated and conceded that it was wrong. We got something out of him by going to court, as he recognised, at long last, that he did not have a case. What the right hon. Gentleman is doing to Hackney and other areas is not only immoral and absolutely wrong but short-sighted if we wish to revive the inner city areas and escape from the enormous difficulties that arose last summer. I can illustrate graphically the problems of deprivation. They are not only related to housing, but Hackney has 15,000 families on the housing list. That is not true of Kensington, Bromley and Wandsworth. Male unemployment is 16·4 per cent., a rise of 3 per cent. since March 1981. Bromley, Wandsworth, Kensington and Chelsea do not have unemployment on that scale. Unemployment for black youngsters is far worse. About 50 per cent. are out of work, so the scale of that problem is also very different. About 25 per cent. of white youngsters are out of work. Despite the cuts in support and the lack of encouragement from the Government, Hackney council has persisted in its positive employment policies. It has provided enormous help for the disabled. In Mentmore Industries, which was established in 1979 and which mass-produces turned components and manufactures electronic equipment to Post Office standards, 50 jobs have been provided for disabled people. That wicked and overspending authority through that and other initiatives has this year—the International Year of Disabled People—won an award under the fit-for-work scheme organised by the MSC. Why does not the Department take such activities into account instead of glibly saying that Hackney is an overspending authority? Of course the borough makes mistakes, but it has taken deliberate and positive steps to stimulate employment. A number of schemes have been initiated, all of which require far more Government support and encouragement. I name just one. The MSC scheme for work experience on employers' premises, under the guidance of the council staff, has provided help for 220 youngsters since 1979. There are now plans to expand the scheme, but it cannot be done without some Government sustenance. We have provided enormous support for setting up small factories and helping small businesses in the borough, but an inner London area such as Hackney needs more help. We cannot do that sort of thing without more sustenance from the Government. We are proposing to set up a TUC centre for the unemployed, which will involve the TUC, the trades council and Hackney council. It will provide vocational and non-vocational courses and will advise on welfare and employment rights. It needs help with capital costs from the Government or Government agencies, but there is not much sign that it will be forthcoming. I could go on, but I do not propose to do so. I have illustrated what Hackney is doing positively to sustain more jobs, which is a critical matter. The tragedy is that for every step forward that Hackney takes—some, I concede, with a small measure of Government help—the council is forced to take two steps backwards by the unemployment policies of the Government and by their local authority spending policies. Those policies are deeply offensive and are injurious to the interests of my constituents. I shall continue to oppose them because I believe that by highlighting the damage that is being done the Tories, at the next council elections, will suffer a severe reverse, and, more important, they will be evicted from office. We need to expedite that process as much as possible.3.57 am
This debate enables us to look more widely at the general background to local authority finance, which no doubt will be discussed in a narrower context in a few hours.
It would be fruitful if we asked ourselves why, at this time, there has developed such intense controversy over the rates and the performance of local authorities. It is entirely wrong to attribute all the blame for the aggravation and controversy to the Secretary of State for the Environment. There are important issues that are beginning to be borne in on the ratepayers, local authority, officers, councillors and others concerned. Perhaps the general context is that of the oil price change of the 1970s, which we still have not taken into our thinking, particularly regarding London Transport. Over a period of time we shall have to adjust our way of life to a significant change in the cost of energy. In passing, it is worth taking note of the way in which different economies have reacted to the oil price changes. Whereas the Japanese assessed the position as one in which they would have to increase investment and forgo consumption, in the later years of the previous Labour Government the response in Britain was a sharp increase in our standard of living. We permitted ourselves a sharp increase in consumption and a falling away in real investment. Of course, the economy could not continue on that headlong course, so now we are having to suffer a particularly sharp reversal of that wrongly directed economic boom, which is being felt in central Government, but particularly in local government finance. Recently too, we have had the Government's Green Paper on the alternatives to domestic rates. That is a subject to which the House must give its attention as a matter of urgency. The general problem over a period of years is that Parliament has imposed duties on local authorities without giving them the necessary sources of finance to carry them out. They have responded, for good reason, because Parliament has detected real needs, for example in helping the homeless or the disabled. Local authorities wanted to do what they were required to do, and this has led to an upward pressure on the rates until we have come to the present impasse. It is only natural that councillors and permanent officials of local authorities have welcomed the increase in responsibility and influence which has come to them as a result of parliamentary pressure. Probably, also from the point of view of personnel management, one might say that the pyramid structure of local authority staff has provided an inherent tendency towards inefficiency and the putting on of adipose tissue in the senior administrative grades. But, taking one thing and another, the conclusion one has to come to is that the costs of running our local authorities cannot be met simply through a tax on property, and the money has to come from elsewhere. We have partially recognised that fact, but we have had a series of Green Papers and studies of local government without corning to the necessary conclusions. We are now being brought up sharply against the necessity to reform the finance and organisation of local authorities, but we have not yet given the whole subject the study that it deserves in this Chamber. The rate support grant has grown and grown as a drain on the central finances of the economy, and in the case of the intermediate authorities one has seen a rise in the amount of the precepts. These have become a really burning issue now in London, particularly in inner London, on account of the high expenditure by the Inner London Education Authority. If we cannot get enough money from the rates and the Government are reluctant to provide it through the rate support grant and if the ratepayers are revolting against the precepts, cuts in expenditure inevitably come into view and of course are highly topical at present.It is difficult to gauge from the hon. Gentleman's speech whether he is in favor of forcing ILEA to make cuts in expenditure which would involve reducing the number of evening classes and opportunities for adult education.
I shall come to that shortly, and I shall hope to give the hon. Gentleman a full reply, but I do not want to be tempted away from generalities for the time being, because I want to touch on some particular conclusions that I have reached.
I think that we have got to remove from local authorities some of the big burdens that we have put upon them—or which they have borne in some cases since the Middle Ages. The particular burden that we must take off local authorities is the entire cost of education. We do not expect local authorities to provide the entire cost of the Health Service, although no doubt in medieval times that too was a local responsibility; but I think that we must now accept that the same position has arisen in regard to education. I know what a wrench it will be for many local authorities which have a strong tradition of running education on local lines to find that the cost has been taken on to the central budget. Inevitably an increasing measure of influence will be drawn to the centre and away from local discretion. Since education now represents more than half the total cost of the rates and since we must do something quickly about the reform of the rates, it stands to reason that the Government should proceed on the lines that are discussed in an interesting appendix to the Green paper. Either they must accept the entire cost of the provision of education on the central budget or else they must introduce a special education block grant which would cover at any rate the standard cost of education calculated in relation to some formula. Possibly one ought to pursue the idea of taking burdens off local authorities where police, fire and transport are concerned. Transport is a subject that is attracting a great deal of public attention, because it is not only in London that transport is subsidised by local authorities. It would be advisable to make the precepts a completely separate demand on ratepayers, and not simply a sum which has to be subscribed by the boroughs and then collected by the boroughs in a way which is not immediately apparent to ratepayers. Some people may say that extra administrative costs would be involved in requiring bodies such as the ILEA or the GLC to send out their own rate demands directly to ratepayers; but I think that the additional cost would be more than made up in a greater awareness on the part of the voters of what is happening, so that they would be able to form a much clearer idea of the way in which their money is being spent and could decide how they would like changes to be made. Above all, with universal suffrage—I hope that we shall always have that—we must allow the electors to discriminate by laying open to their comprehension what they are being asked to support, and why, and where the expenditure is coming from. I do not think that the Secretary of State was right to introduce the boomerang effect in the way in which he calculates the RSG. The idea that the contribution from the Government should be reduced if a local authority decides to spend more than the target set for it in Whitehall is a blunder, because it has had the effect, certainly in the borough that I represent, of putting great hardship on ratepayers as the outcome of a tussle over which they have no control. In Kensington the rates are now such an excessive burden that population movement has become a major anxiety. The borough that I represent has lost a quarter of its population in the last 10 years, and I believe that the exodus is proceeding much faster now even than it was during that period. Irreversible social change is being forced on inner London largely because of the burden of the rates. This is not something that can be allowed to continue while we debate finer points as to whether the targets are right or the particular method of dealing with the RSG is equitable, and so on. We must make dramatic changes in the way in which the rate burden falls on people who are barely able to pay and who dread the thought of yet more increases in the pipeline. At this point it is right for me to welcome the recognition, which is evidently included in the Secretary of State's calculations for the coming year, of the particular problems of Kensington and Chelsea. I would like to express my gratitude now, although I have not had time fully to consult the experts on the subject as to the precise meaning of the announcement made earlier today. If we are to reform the rating system so that the electors understand the way in which their money is being spent, every voter should be contributing. When we debated the possibility of the introduction of a referendum system, we became aware that many people on the electoral roll believe that they pay nothing to the maintenance of the local authority. Every voter should make some sort of contribution. Equally, every contributor should have some voice in the way that local authorities spend their money. I recognise the difficulty of enfranchising the commercial ratepayer, but the sums now being taken for instance from small shopkeepers are such that it cannot be right that they should have no voice in the way that their money is being spent.They should live in the constituency.
I shall hurry through my list of conclusions about rating reform. There ought to be much greater clarification of what constitutes capital expenditure and what constitutes current account spending by local authorities. Throughout our public finance we have been far too lax in recent years in defining the border between capital account and current account spending. My right hon. Friend the Secretary of State should therefore attend particularly to this point in opening up the figures to public inspection and comprehension.
I wish to touch now on two specific points. The first is the situation with regard to London Transport. It is my personal conviction that London Transport must be subsidised, because we have not yet been able to adapt our way of life and work to the change in the cost of energy. It will be a long time before we can do so. London has been laid out on the assumption of a relatively efficient and cheap public transport system. I shall not dwell on the question of efficiency, but the cheapness has had to go; and that has inevitably affected our way of life. I do not believe that we can possibly ask London Transport to pass on to travellers in a short space of time the whole burden of adjustment to the real change that has taken place in the cost of transport. If transport is to be subsidised, by whom should it be subsidised? It should certainly not be subsidised by the ratepayers, whose burdens are already too great. That was the big mistake that Mr. Livingstone made. I think that he probably made his case for an increase in the subsidy to London Transport and perhaps the only means available to him to carry out his policy was to obtain the money from the ratepayers. But in my opinion that is where the whole exercise went wrong, and I was heartily relieved, as were the ratepayers of Kensington, when the Law Lords decided that the programme could not continue. Nevertheless, we are still facing the problem that Mr. Livingstone sought to tackle. Either London Transport will be far too expensive and capital expenditure will be minimised, or we shall have to get the money from somewhere. The capital expenditure programme cannot be carried on the price of the tickets because of competition from the private car. If the tickets had to pay for the capital outlay that is necessary if we are to have a really modern transport system in London in 10 years' time, public transport would go largely out of use and private cars would invade every nook and cranny of inner London. People would be obliged to find ways to come to work in private cars notwithstanding parking restrictions or anything else. Equally, as I have explained, the cost of London Transport cannot be carried on the rates because the burdens are already too heavy. It is in this context that it might be extremely fruitful to separate the capital programme from the current account. I believe that the capital programme could be financed from the market or from some other source, but it would have to have some kind of Government support or stimulus if the capital programme necessary to modernise London Transport were to be financed and carried through in that way. That is all that I wish to say at this time on that difficult subject. I turn to the Inner London Education Authority. have never professed to be an education expert. Indeed, I do not think that I have ventured to speak on education in any depth since I was elected. But there is no doubt at all that ILEA is now a very important issue for people living in inner London because of its very high cost. In my borough, the sense of unfairness about the high contribution that ratepayers have to make to ILEA is all the greater because it is now virtually impossible for people on average incomes to raise their families in inner London. The cost of living is too high. Therefore, in relation to the population of the borough, we have a relatively small number of children being educated under the auspices of ILEA. Yet, because the Inland Revenue chooses to place a high rateable value on our property, my borough has to bear a very large part of the cost. Inevitably, we are interested in information such as we find in written replies of 3 December which compared the performance of the ILEA with that of other urban authorities. The picture is not the tragic one outlined by the hon. Member for St. Pancras, North (Mr. Stallard). The administrative costs of ILEA, at 5·5 per cent., are far higher than in Birmingham, Bradford, Leeds, Manchester or Sheffield, and the cost of London's non-teaching staff at 23 per cent. is far higher than the cost in those authorities. There is no need for that; but it is only what one might expect. If an authority is not directly responsible to the electors for its budget, it is inevitable that the budget will wander upwards and the authority will spend more and more. That is not a deadly criticism of those who run ILEA: they want to give children the best possible service. But if they are spending public money and do not come under direct scrutiny they will err on the side of lavish expenditure. There is no one to tell them not to do so. That has happened in ILEA over the years. Those who know about the problems of education in London can point to the special difficulties that ILEA is trying to overcome and they are sympathetic to the aim of providing the best possible service; but in our present financial dilemma we must be as prudent as possible and there is no one who is unaware of some cases of waste and mismanagement in ILEA, which must be corrected as a matter of good housekeeping. I hope that some measure of financial control will be introduced to oblige ILEA to respond and to reduce its administrative and non-teaching staff expenditure, without significantly reducing the quality of the service to the children. My final recommendation is that some way should be found of assisting councillors who are concerned with financial management, particularly in large authorities such as the GLC and ILEA, but in some of the high-spending boroughs as well. If the sort of support that company directors receive from the auditors were available to councillors, they would be able to deal more confidently with the problems put to them by the officers. Local authority finance is a highly complex matter and officers are often able to present the case for expenditure in a way that makes it difficult for councillors to argue back. To give a more professional service to councillors, analysing and explaining independently from the council's executives the options open to them and the implications of the decisions that they have to take, would result in councillors finding their own way to greater prudence and economy and would be in the interests of the ratepayers and the local population.4.18 am
We always welcome the contributions of the hon. Member for Kensington (Sir B. Rhys Williams), because he brings a perspective to the House which is wholly his own and is not affected by prescription; from the Whips.
Before I get on to my main topics, I should like to follow up a couple of the hon. Gentleman's comments. He complained that those who own small shops do not have a voice in the running of boroughs. If people wish to trade in my constituency of Lewisham, West but also wish, for reasons best known to themselves, to live in the constituency of the hon. Member for Ravensbourne (Mr. Hunt), for what it is worth, that is their conscious decision. If they wish to live in Ravensbourne and enjoy the purported delights that may or may not exist there, they choose to exercise their vote in that constituency. If they wish to trade in other constituencies in London, that is their choice. Nothing stops them from living and trading in West Lewisham. If they wish to live and trade in West Lewisham, they have their vote in West Lewisham like every other member of the electorate there. It is time that this canard of Conservative Members—that people involved in small businesses should have two votes, one where they live and one where they trade—was killed. If people want to live and have a stake in the area where they decide to run a shop, they are very welcome. Many of them do. Many of them vote there, some for the Conservative Party and some for the Labour Party. The idea that people should have two votes comes not only from Conservative Back Benchers. It is also the carping criticism of the Prime Minister, from her small shopkeeping background in Grantham, that there is some right of electors to have two votes as they did before 1950. The right to have a business vote and a residence vote disappeared long ago. If the Conservative Party are saying that some people should have two votes while others have only one, they should come clean and say so. That is, I believe, what they are implying. Many small shopkeepers in my constituency who have decided to live above the shop are happy with their situation. The carping criticism of Conservative Members. in regard to the Bromley-into-Lewisham traders is based on no case whatever. The less that is heard of the argument the better. It has no substance.Has not my hon. Friend found—this has been my experience—that many small shopkeepers, although they do not live in his constituency, take up a great deal of his time and resources in correspondence complaining about the activities of the authority in the area where they operate rather than that where they live? This means that they often obtain the services of two hon. Members for the price of one vote. They have a voice in two constituencies.
I find that situation, but I make no complaint. I try to serve all folk who come to see me whether they live or trade in my constituency. If they complain about the services offered in the London borough of Bromley, I am happy to sustain them. I am happy to support many of those who complain about Bromley. All I am saying is that the principle that was established in 1950 by a Labour Government of one man, one vote must be sustained now. Those Conservative Members who are trying to re-establish the principle of one man, two votes for small traders have no case.
The second issue that I want to dispose of before I come to the main burden of my speech concerns the people who complain about the Inner London Education Authority. The Conservative Party should have learnt a lesson about ILEA. As soon as that party came to office, it appointed the hon. Member for St. Marylebone (Mr. Baker), who is now the Minister for Industry and Information Technology, to make a report on ILEA. The report went to Baroness Young—one of the Prime Minister's confidantes, now Leader of the House of Lords, at that time Minister of State, Department of Education and Science—as one option to break up ILEA. That attempt failed, partly because it was a nonsense, and partly because the Royal borough of Kensington and Chelsea no longer has any children, to speak of; they are all Arabs and immigrants of one sort or another. It would have been an absurdity to make Kensington and Chelsea an education authority. It failed, too, because of the massive protests from parents, teachers, and others in ILEA, who attested to the fact that ever since the London school board was founded in 1870 it had set standards which had led the country, and that the people of London were not willing for those standards to be eroded. Now we see a second assault. They tried, first, to break up ILEA on the ground that it was too big. It is not all that big. Both Essex and Hampshire authorities will soon have more youngsters than ILEA. If it were broken up, the tiny units represented by some of the boroughs would be so small as to be ridiculous. Now there is an attempt to say that the historic expenditure of ILEA, which has set standards for the rest of Britain for a century and more, must be broken up because, according to the Heseltine monetary doctrine, every authority must be dragged, like Procrustes, into a bed in which every authority will be fitted into exactly the same expenditure framework. If the Government are adamant about the new grant-related expenditure doctrine, forcing ILEA into this Procrustean bed, they will fail. The letters of protest that I have received about this attempt to force ILEA into this mould have been far greater than on the occasion of the previous campaign—a very successful campaign—to maintain ILEA against the Baker report, the Young report, and all the other attempts to force ILEA into that mould. We have to accept that in London there is a higher historic education cost than there is in many other local education authority areas. This is because London has been accustomed to a very high level not so much of primary, secondary or nursery education as of adult education, further education and evening classes. These evening classes, typified by the booklet "Spotlight" which has gone out to Londoners year after year, have produced a massive lobby of adults in London who say that they want to keep their evening classes, that they have a right to them, and that they will not be deprived of them—[Interruption.] I wish that I could invite the Treasurer of Her Majesty's Household to intervene, but perhaps I can cast the argument into the framework of his locality for a moment or two. Adults in London say that they will not be deprived of evening classes simply because of the existence of a Conservative Government who in a perverse way want to put London into the same sort of framework as in the Principality at Monmouth. I am not against the people of Monmouth staying at home and not going to evening classes if they wish to do that. But it happens to be the long tradition of Londoners to have a very high standard of adult education provided in the form of evening classes, and it is a tradition which extends back more than 100 years. If the Government really think that they will succeed in putting this ludicrous straitjacket of grant-related expenditure on the ILEA and thereby drag London down to the standard of Chepstow and Monmouth—I mention those localities for the purpose of illustration; I do not say that Chepsow and Monmouth represent any low, middle or high level of expenditure—they have a surprise coming to them. The weight of protest which has come to me and, I am sure, to hon. Members representing outer London boroughs whose constituents use ILEA evening classes pretty heavily—and now, I am happy to say, are charged for them—is such that it will not be possible. So that is my second warning to the Government. Having made those two allusions to rating and to the ILEA, I come to the burden of my remarks. They may be duplicated in tomorrow's debate, but what is said tonight, I suspect, is by way of preamble to what will be said tomorrow. In my view, the crisis facing local government—not only in London but in the rest of Britain—hitherto has been enormously underestimated. We have had a number of discussions—during Business questions on Thursday, and again on Friday—about last week's decision by the House of Lords affecting London transport. Far be it from me to cast a single aspersion on the five eminent Law Lords who passed those enormously wise judgments upon what the law now is about transport in both London and the rest of the country. We have a Xeroxed document from the Library in which we cart read each of the judgments by Lords Wilberforce, Diplock, Keith of Kinkel, Scarman and Brandon of Oakbrook. It is not easy to reconcile them. It is not easy for hon. Members, London Transport or the Greater London Council to decide on the basis of reading the judgments what the law now is.Before the hon. Gentleman goes too far down that road, I remind him that the debate is about the rate support grant to the Greater London Council, London borough councils and precepting authorities, including the Inner London Education Authority. It is not concerned with the judgment. That is a matter for tomorrow.
The debate may not directly concern the judgment, Mr. Deputy Speaker, but the rate support grant to the GLC—I do not want to tangle with you in any way—is highly relevant to the GLC's ability properly to confront its transport responsibilities in the future, because only according to the rate support grant money that it receives can it confront its responsibilities. You will no doubt rule me out of order the moment I am out of order. I have discussed this evening with Mr. Kenneth Livingstone and other figures hated by those on the Conservative Benches what they shall do now. They have been trying to decide how, given the rate support grant that they will receive, which is what we are discussing, they shall confront their local responsibilities. They do not know what their local responsibilities are.
One can start with Wilberforce and work through Diplock, Keith of Kinkel, Scarman and Brandon of Oakbrook. Does one say that if three judges have said the same thing that is the law but that if only one judge has said something that is not the law? There is a difficulty. I say this obiter, Mr. Deputy Speaker, so that you will not rule me out of order if I say it in passing. Our parliamentary procedures and our administrative procedures in the Civil Service are clear. But when the House of Lords comes up with a judgment we have the judgments of five separate Law Lords, all in different type faces, showing that they have all dictated to different secretaries different speeches, none of which coheres in any way to any of the others. I want to address myself to how the GLC now, given the rate support grant settlement that has been allowed to it, approaches the law as it stands. As I see it, in the worst sense—taking Lord Diplock's judgment—local government has to all intents and purposes been abolished. Lord Diplock says that when the Government fix a block grant, and say that there is a penalty attached to any attempt to go beyond it, it is a breach of the fiduciary duty to the ratepayers if any local authority—not just the GLC—goes beyond it. That may be a reasonable interpretation of the law. Lord Diplock's judgment may represent the majority, because the other Law Lords did not comment on it. It is difficult to know. That is the way that the judges make new law. If this is the new law, to all intents and purposes it abolishes local government in Britain. I quote from page 27 of Lord Diplock's judgment to make clear what I mean:that is Lord Diplock saying that; it is not admitted on either side—"For, as the GLC well knew when it took the decision to reduce the fares, it would entail a loss of rate grant from central government funds amounting to some £50 million, which would have to be made good by the ratepayers as a result of the GLC's decision. So the total financial burden to be shared by passengers and the ratepayers for the provision of an integrated and efficient public passenger transport system was to be increased by an extra £50 million as a result of the decision, without any equivalent improvement in the efficiency of the system"—
I submit that that section of that judgment changes the face of local government in Britain. It means that local government is now a creature of the central Government. If the central Government decide, for one reason or another, to put any penalty whatsoever on a decision to spend more, any such decision to spend more is against the law. I think that we must put this matter in the context of local government. I take as an example the much-argued decision throughout the history of local government to give free scholarships to grammar school children. Bradford, I think, was the first local education authority to offer free scholarships. It did so from about 1909 to 1932 when the coalition Government finally prevented it from doing so. Bradford gave free scholarships during those years clearly against the wishes of the central Government, but at no point was it suggested that it was illegal to do so. I cite Bradford as one example, but other authorities gave scholarships. Lord Diplock is saying that any local authority that spends beyond totals now laid down by the central Government is acting illegally. My next point is highly relevant to today's debate. This is a new situation that will create a centralist State and that will destroy any local government initiative. I shall refer not to anything written by Ken Livingstone, Ted Knight or the bête noire of the Conservative Party but to one of the Conservative Party's biblical texts. I refer to the leader in the Financial Times, which is normally cited by Conservative Members as a newspaper to be admired. The leader in last Friday's edition is headed"and the whole of the extra £50 million was to be recovered from the ratepayers. That would, in my view, clearly be a thriftless use of moneys obtained by the GLC from ratepayers and a deliberate failure to deploy to the best advantage the full financial resources available to it by avoiding any action that would involve forfeiting grants from central government funds. It was thus a breach of the fiduciary duty owed by the GLC to the ratepayers. I accordingly agree with your Lordships that the precept issued pursuant to the decision was ultra wires and therefore void."
The second paragraph begins:"Law Lords and the Greater London Council".
The article is discussing a "flawed" general principle. It continues:"Flawed—The Law Lords' decision that the Greater London Council was acting illegally in deciding to increase its subsidy to London Transport in order to reduce fares to a level comparable with those of the world's other major public transport undertakings is the clearest possible case of this general principle"
Similar criticism occurred in the latest edition of The Sunday Times. That criticism of the Law Lords' decision and the depth of that decision have created a massive crisis not only in terms of London's rate support grant but in terms of every other rate support grant settlement in Britain. As a result of the decision, councils no longer know what is legal. Within the rate support grant settlement fixed for London, is it legal to allow pensioners free travel? Last Friday the Secretary of State for Transport leapt up and said that it was legal. However, he is not a Law Lord and I doubt whether he will become one, however hard he tries. No one will know the answer until a pronouncement is made. Despite all the talk about a fiduciary duty to ratepayers and the requirement to balance the needs of the old against the thrust to keep down rates, all Governments—Conservative and Labour—may have been acting illegally. Is it legal for the GLC to allow every Metropolitan policeman and his family to travel free on London Transport? No one knows. The range of areas goes far beyond London Transport. Nobody knows any longer what local authorities, such as the GLC, have the right to decide and what the Law Lords are liable to interfere with. The tenor of the debate over the past few days has been that Ken Livingstone has made a great mess of things and that he ought to sort it all out. The truth is that Bromley council has thrown a pebble into the waters. Mr. Sayles, a former town clerk in Aldershot, turned lawyer, conspired with some Bromley councillors in a public house and managed to launch a legal action which has resulted in the present situation, which simply cannot stand in its present state. Nobody knows any longer what local authorities' powers are, and for the Government to react as they did on Friday—the Solicitor-General reciting a long list of decided cases but refusing tp say anything in particular and the Secretary of State for Transport simply blaming the GLC leader—is not satisfactory. It is significant that when in 1980 the Government lost the case before Mr. Justice Woolf in the High Court and were found to be breaking the law, within 24 hours they rushed into Parliament a Bill of Indemnity. They whipped in a Bill to make sure that nothing they do can possibly be illegal. Everybody thought that the law was of a particular sort and the judges suddenly said that it was of another sort. However, when a case is discovered which is on all fours with the London Transport case, in which all the legal advice except that of Mr. Sayles—the former town clerk in Aldershot—turns out to be of a particular sort, the Law Lords—I make no complaint about them, and I am sure that they are the best thing since sliced bread—in their wisdom, not being remotely perverse or anything of that sort, suddenly say that the law is not what had been advised to the parties by the most eminent of Queen's Counsel. The Government then said in their wisdom "Oh, no. We are not going to do for the GLC as we did for our own mates because we ar not evenhanded in these matters; they are Labour and our mates are Conservative. That is our attitude to the law." Unless the Government can give a better explanation than that, their refusal to introduce legislation and to return the law to its expected position can be described only in those terms. I make no complaint about the Law Lords, because if I did, Mr. Deputy Speaker, you would immediately tell me that I should not. Therefore, my complaint is totally against the Government and I am justified in saying that within our rules of order. I accuse the Government of being partial in their treatment of the law in the House. When a legal decision goes against them, they whip in legislation to exonerate themselves, but when a legal decision goes against their opponents they stand on the sidelines and laugh and try to make political capital out of the episode. Unless the Government can make a better case for themselves, they will stand accused of being politically biased and wholly one-sided on this issue. Since the Government were elected we have seen examples of litigation over administrative law month after month. One example involved the Lambeth, Southwark and Lewisham area health authorities. There was the Camden-Hackney housing issue. The courts found against the Government but used language that was apologetic in the extreme. The Norwich issue is current. Grant-related expenditures for local authorities throughout Britain, including the GLC will be discussed later today. I have an instinct that they will lead to litigation because for certain inner London boroughs the Secretary of State has announced grant-related expenditures that no reasonable Secretary of State in a reasonable state of mind could have introduced. That will take a couple of months to work through the courts to the House of Lords. We shall see how my Lords Wilberforce and Diplock come to a conclusion. It has taken this Government to create the most litigious situation over administrative law since the Second World War. They have decided to become a centralist Government by abolishing local government and declaring war upon it. They have declared war especially on London local government. It seems that they are devoting special attention to the GLC and its boroughs. I predict that this will blow up in their faces as they encourage litigation. The Prime Minister said from the Dispatch Box "I congratulate the London borough of Bromley." What words could have been more partisan than those? There could have been no greater admission of the partisan approach towards Bromley's action. There was no desire to see even-handed litigation. The Government's decision to declare war on local authorities, which will lead to constant litigation over administrative law, will throw the law into such difficulty that the Government will be forced to revise it and introduce the necessary legislation in the next few months. The debate has been worth while because it has brought out the extent to which the Government are conducting a purely partisan and pointless war, with Bromley council as a sort of Albania, as the conduit through which their partisan activities shall be carried out against the GLC. They will live to rue the day that they ever started such an absurd chain of litigation."As an essay in transport economics or managerial theory, the Lords' judgment is gravely flawed. Their Lordships' unanimous contention that an 'economic' public transport system is one which aims to ensure that costs are covered by passenger revenues would not survive the red pencil of an 'A' Level economics examiner who is aware of elementary economic concepts such as 'external benefits' and 'economies of scale'".
5.0 am
I shall not go down the road taken so strongly by the hon. Member for Lewisham, West (Mr. Price). It was of rather doubtful order at times, and the hon. Gentleman had to be pulled up.
When the hon. Gentleman says that local government is affected in the way that he has described, I remind him that whatever a party puts into a manifesto upon which it subsequently gains election to control a local authority, it must be subject to the law of the land. The matter is as simple as that. The people of London are deeply indebted to Bromley borough council for bringing the GLC to book on the important question of fares policy. The hon. Gentleman said that business men, if they wish to have a vote, should live in the same constituency as their business. However, they may have more than one shop in different constituencies or business may expand into different constituencies. The argument falls immediately. If the business man chooses to live in one constituency and vote there, he cannot vote in another constituency. The argument does not apply. The business position—1 have no vested interest in business—is that we have taxation without representation. I cannot believe that one so committed to democracy as the hon. Member for Lewisham, West can smile on such a position.How many votes would such a business man have—six, seven, eight or ten?
The hon. Gentleman has misunderstood my point. I took the argument of the hon. Member for Lewisham, West, who said that if business men wished to have a vote they should live in the constituency in which their businesses were situated. I said that the businesses may be spread about.
I shall not go down the road of the hon. Member for St. Pancras, North (Mr. Stallard), who opened the debate. When he last opened a debate on Greater London, we heard an extravagant attack upon the then Conservative-controlled GLC. I remember him talking of this being a great cyclist and bumping into potholes all over the city, because he said that the Conservative-controlled GLC did nothing about road repairs. Nothing has happened about road repairs since the Labour Party gained control of the GLC. The potholes have become worse, and, if the hon. Gentleman's bicycle does not have flat tyres as a result, he is very lucky. The profligate spending attitudes of the Labour-controlled GLC are serious for the people of London. There was a minor saving of £10,000 by the Labour Party when it took over the GLC in not recording member's speeches made in the council. The object of that was to prevent the public from realising what many of the extreme members were saying. They are never on record, so they can say what they like. I castigate the authority for that anti-democratic move. My hon. Friend the Member for Ravensbourne (Mr. Hunt) talked about jobs for the boys. About 40 jobs have been invented since Mr. Livingstone and his friends took over the GLC, each of them with a salary of well over £20,000. It does not stop there. Those people have at least one secretary, big offices, telephones and personal assistants. The knock-on effect of assistant staff, office space, paper and so on puts the cost of each job at £100,000 a year or more. No wonder the people of London resent the irrelevant way that Mr. Livingstone and company throw their money about. I am not surprised to have postbags inflated with complaints from people who take exception to what has happened over fares. Just before Mr. Livingstone and his friends took over County Hall, the bus drivers and crews settled for a pay increase of 8 per cent. Subsequently, under the Labour-controlled GLC, London transport staff gained 11 per cent., and Mr. Livingstone decided that the bus workers should put in for the same increase as London Transport could afford it. When fares were illegally cut by 20 per cent., the staff on the Underground also had a £50 bonus to compensate for the lower value of their perks in free travel. London has had to pay through the nose for the GLC in every way. I do not excuse the GLC leaders for not listening to advice. There was at least considerable doubt about the policy. They may have fought the election on a lower fares policy, but all local government and national Government action must be within the law. If there was a doubt the legality of lowering fares and making a massive supplementary rate demand, the GLC should have paid attention. Great hardship has been caused. The very old people who come to my surgeries already had free bus passes and do not use the Underground. They must by law pay their rates, even though they may not even use public transport. Disabled people may not he able to use the transport, but they were obliged to pay the whacking supplementary rate. The hardship caused to the elderly and disabled has to be seen to be believed. It is incredible that the GLC did not have the slightest interest in the way that it damaged people's lives. A lady of 80 came to my surgery totally confused. She had to find another £1 a week for the supplementary rate, which caused her considerable hardship. I wrote to County Hall and received a flat reply. It was not in the least interested. I also forecast a vast waste of money with the London enterprise board. A sum of £10 million has been injected into the venture, which is intended to create jobs. We know, on a rough calculation, that every time a firm's rates rise by £5,000 a job is lost. The sum of £10 million will take the jobs of at least 2,000 people across London. It is doubtful whether anything like that number of jobs will be created by the scheme and, in any case, any jobs that are created are likely to be bogus. We discovered in 1967 that jobs created in that way under the then Labour Government came out at £78,000 a time. How the GLC can believe that it is pursuing a wise policy in putting people out of work in that way in order to create expensive jobs, I do not know. The effect on industry of the supplementary rate has been severe. A small shop in my constituency, where the owner employed one assistant, had a supplementary rate of £12. The assistant had to go. Opposition Members scream about unemployment. We are all concerned about unemployment, but this is the way in which it is being created—via local authorities. Another business, employing a number of people, had a supplementary rate of £30,000, and another a supplementary rate of £50,000. That is extremely severe and damaging to industry at a difficult economic time. The problem is that all the money that has been acquired has gone into current spending and not into capital spending. We emphasise that it is money raised without any representation from the individuals running the firms, and it is taxation without representation. Let the House beware of that.Surely the explanation of unemployment in a borough such as mine is far removed from the hon. Gentleman's simplistic interpretation. I have already given the figure for Hackney. We have raging unemployment of just over 16 per cent. If we take account of the depleted population over the last year or so, the figure is in excess of 19 per cent. To attribute all that to the spendthrift policies of the local authority is wrong. Is it not more likely to have something to do with the policies of the last two and a half years, under which millions of pounds have flown out of the coffers of the local authorities directly because of the actions of the Secretary of State?
There is nothing simplistic about my argument. I did not say that all unemployment was attributable to local government spending. Since the hon. Gentleman has raised the quesion of his constituency, I remind him that I know it very well and have visited it many times. I know the schools in the constituency, I know how much wasteful spending there has been by the Hackney council and I know how much the ratepayers of Hackney have resented it over the years. However, I am more interested in my constituency and I do not wish to travel down that road with the hon. Gentleman. We can have a separate debate at some other time if he wishes. I should be pleased to show him some areas of deprivation that have arisen because of neglect by that council.
The position on rates in the London borough of Ealing is remarkable. We have had a Conservative-controlled council since 1978 and the rate rises have been very much lower on average than for the rest of London. In particular, the contrast between our rate rises and those of the London borough of Brent, which is next to Ealing, has been enormous. There are similar houses side by side, one in Ealing and one in Brent, and the rent in Brent is double that in Ealing. Naturally, the Brent ratepayers are up in arms about it and business is moving out of Brent and into Ealing where it has more chance of a reasonable and stable rate base. I welcome unreservedly the rate support grant settlement for the London borough of Ealing, which has been very thorough in its spending policies and very careful, and has received a rate settlement which is only fair and just this year but which will enable it to continue its sound money policies and sound policies of keeping spending under control while maintaining proper services. It may well see a very low rate increase if, indeed, one is necessary at all. For that, local government and national Government both Conservative-controlled, are to be congratulated. I should like briefly to mention the Hayes bypass which the GLC is proposing. I have heard nothing from the GLC direct, but Mr. Livingstone said on television some weeks ago that the road would go ahead. The Hayes bypass idea was brought forward some years ago by a former Labour-controlled GLC. When the Conservatives controlled the GLC, the road was strongly attacked by the Labour Party as being unnecessary and damaging to the local community in regard to the proposed route. The Labour Party fought the GLC election last May on the platform that the road would not proceed. Since last May there have been no local consultations whatever. We understand that the road is to proceed and that, if it does, it will be highly damaging at its northern end to the people of Northolt. If it ends at the White Hart, there will be enormous traffic building up there, which will then pile into Church Road and on to the A312 road through Northolt at tremendous speeds, endangering life and limb, making tremendous noise, causing pollution, and thoroughly lowering the standard and quality of living of the community of Northolt. Yet there has been no consultation on the northern end of the route. What might be joy for the people of Southall and Hayes would be sheer hell and misery for the people of Northolt. The GLC, from Mr. Livingstone downwards, has refused to answer letters from local people, residents' groups, the A312 action committee, and from me. There has been no consultation with any of us and we are told that the road will go ahead. If there is not some proper consultation, there will be a tremendous row. The GLC can bring the bulldozers, but the people will lie down before them. We shall not have that road through an unsuitable part of Northolt, ruining the lives of the people of the area for all time. Unless the GLC learns that democracy is about consultation with people who are to be affected by this sort of bypass scheme, it must take the consequences. We cannot accept it. There must be proper consultation, and if the GLC does not act quickly about that there will be a very big row indeed.5.20 am
At 5.20 am none of us is looking forward to long speeches. I begin by congratulating my hon. Friend the Member for St. Pancras, North (Mr. Stallard). In a maiden speech as the leader of the London Labour Members, he set the right tone. It was sober and realistic. It tackled the purpose of the debate—to try properly to assess the effect of Government policies on London. My hon. Friend summed up the issue well when he said that until yesterday there was utter confusion about local government finance but that now there had been clarity and with that had come misery. He said that the position was farcical and that there had been widespread alarm.
My hon. Friend also rightly pointed out that, whatever else the Government are seeking to do through their financial policies, they still fail to recognise the very serious problems that hon. Members have acknowledged over the years. These are largely inner city problems in many of the London boroughs. My hon. Friend the Member for Hackney, Central (Mr. Davis) brought to the debate his special knowledge of problems in the inner city areas. He spoke of the riots last summer. When he was dealing very effectively with the contribution of the hon. Member for Ealing, North (Mr. Greenway), he drew attention to the serious problems of Hackney, which has a 16·4 per cent. adult male unemployment rate. That is double the rate in my borough, Enfield. My hon. Friend told us that 50 per cent. of young black people in Hackney and 20 per cent. of young whites, were registered as unemployed. From my local experience, problems of that size I cannot begin to comprehend fully. I do not think that the hon. Member for Ealing, North was in the Chamber when my hon. Friend the Member for Hackney, Central was making his speech.The hon. Gentleman is not normally shortsighted. I was sitting opposite him throughout that speech.
In that case, the hon. Member will have heard my hon. Friend stoutly defending the efforts of Hackney council in trying to tackle its sizeable problems.
My hon. Friend the Member for Lewisham, West (Mr. Price) made a point that the hon. Member for Ealing, North failed to grasp. The hon. Member for Kensington (Sir B. Rhys Williams) referred to the one-man business. That is the context in which the matter was raised. The hare set running then and taken up by the hon. Member for Ealing, North was tackled fairly. If the argument is that the business man wants representation merely because he is present, he can get representation if he does the same as everyone else—live in the constituency.Even one-man businesses sometimes has part of its plant in one constituency and part of it in another, for various reasons.
In that case, they have the great difficulty of having to make a choice of where they will live. If Conservative Members wish to raise the question of reconsideration of the manner in which representation is made, that is a fair point. But it is surprising that this has emerged only in the past year or two, when there has been a very high incidence of rates. The Government's proposals for rating reform may provide the opportunity to consider that matter.
My hon. Friend the Member for Lewisham, West——Where is he?
He may be lucky enough to be in West Lewisham. My hon. Friend devoted most of his remarks to dealing with the London Transport situation. Certainly, he successfully made the case that, regardless of what has come out of the judgment, there is clearly a great query as to what is legal and what is not. No one will wish today to enter into an argument about the judgment itself, but we are entitled to consider it against the background of that which everyone, including many Conservative Members, felt was the position. Now that the matter has been clarified to the extent that it has, attention will clearly have to be given to it.
For the past two and a half years Labour Members have taken every possible opportunity to draw to the attention, not just of the Government but of the people of London, what we consider are the real problems of London in an attempt to expose and to highlight them. We do not insist that the catalogue of damage or danger to the interests of London arises wholly or solely from the actions of the Government, but we are entitled to derive some satisfaction from having found four or five hours of a very busy day to highlight the problems of London. As has been said, we consider that in the context of the financial affairs of London and the financial policies of the Government for the past two years the Government have been pursuing a vendetta against London as a whole. Individual boroughs may be able to say this year—they were not last year and may not be next year—that the Government have so reconstructed the rate support grant that this year it appears to be fair, although hon. Members who have said that this year said that it was diabolical last year and may say the same next year. The sheer impossibility of the GLC and London boroughs being able to comply with the Government's instructions is patently obvious to all except, apparently, the Government. It is patently obvious to the London Boroughs Association, the Association of Metropolitan Authorities, the Greater London Council, the Association of District Councils and the Association of County Councils, all of which condemn not only the block grant basis but the philosophy behind the proposed new legislation. The Minister should therefore take time in trying to defend that policy. Many hon. Members have rightly sought to illustrate their arguments by taking the examples of their own boroughs. The London borough of Enfield is Tory-controlled and has never been noted either for overspending or for extravagant municipal enterprise. Election after election has been won by the Tories on a slogan of keeping the rates down to the absolute minimum. They argued that that was consistent with good, efficient municipal service, although many of us would disagree. Enfield has been top of more leagues in this regard than any other London borough, not just in the past two and a half year but in the past 10 years. It has always been proud of its record of not spending ratepayers' money. The council certainly worked to a man to get the Conservative Government elected. No one, certainly not the needy and the deprived in the borough, could accuse Enfield council of overspending by any sensible criteria. What have the Government done to their political allies such as the councillors of Enfield who have tried to meet expenditure targets dictated to them by the Secretary of State? When Enfield committees last year drew up their spending plans for the current year it was against the background of a loss of grant of more than £4 million—equivalent to an 8·6p rate to domestic ratepayers. That was due almost entirely to the politic ally motivated redistribution of RSG away from London and other metropolitan areas to the shire counties. By the application of the expenditure yardsticks conceived by the Secretary of State in the unreal world of Marsham Street, the real world of hard-faced loyal Tories in Enfield got a rude shock. After years of taking pride in topping the lists for parsimony, they were told that they had budgeted to spend 5·2 per cent. above the figure that Marsham Street considered was good for them and the people of Enfield. The Secretary of State's friends in the Enfield civic centre were upset to be told by him how not to spend ratepayers' money. They had been at it for 12 years and he had been at it for only two years. The outcome was predictable. A budget that had been pared down to a minimum in March last year had to be pruned still further, on the orders of the Secretary of State, and £1½ million was cut from a budget that was already down to the bone. That meant fewer home helps and park keepers, higher charges, reduced library services and so on. With expenditure in Enfield down to a minimum, the figures announced yesterday show that the borough has been told by the Secretary of State in Marsham Street that he knowes better than Enfield councillors the needs of local people. He has said that the target for Enfield is a 3·6 per cent. cut, in real terms, in this year's budget, compared with last year. One can imagine the feelings of Enfield Tories who pride themselves, as do the Government, on being efficient and who reduced the budget last year to below what they thought was necessary, at being told that it must be reduced by a further 3·6 per cent. The target for neighbouring Haringey is a cut in real terms of 7 per cent. and the figures for other boroughs are Redbridge 1 per cent., Ealing 1 per cent., Barnet 1 per cent. and Waltham Forest 7 per cent., while ILEA faces a reduction of 7·2 per cent. and the GLC a cut of 26·1 per cent. Such an exercise, based on arbitrary figures, shows that the Secretary of State makes no attempt to assess the problems in London boroughs. In a debate such as this we need to consider comparisons of the burden of domestic and commercial ratepayers. A myth has developed in the House and among business men that rate increases are the straw that is breaking the camel's back. Other costs that have risen faster—gas, electricity, transport, the cost of borrowing money, the national insurance surcharge and so on—are all ignored because they are not the result of local people taking decisions on how to spend money that is raised locally. It is right that the House and the country should periodically consider the best ways of collecting and redistributing money and we should examine a local income tax and other suggestions. However, Conservative Members do themselves and their case no good by trying to say that the straw that is breaking the camel's back is the increase in rates. I have figures showing that over any given period, and in comparison with a great range of increases, including prices and profits, the actual net increase in rates has been lower. I would have thought that interest rates have a far greater impact on business. For every 1 per cent. increase in interest rates, the burden on business is about £500 million. That is a colossal sum. Non-domestic rates in London have not increased as a proportion of costs. They remain a small proportion—less than 1 per cent.—of total business costs. In the retail trade, because of its different nature, it is about 4 per cent. It is ridiculous to argue that the impact of what is contained within 1 per cent. of total costs will break the camel's back. The increase in non-domestic rates in London has been below the level of inflation since 1975. I wish to refer to the Law Lords judgment on the Greater London Council fares policy. We are not talking about ratepayers paying less in rates. There is not a ratepayer alive who would not beg his authority to levy a rate as low as possible. We are not talking about a policy that was so out of line with the law that it was immediately branded as unlawful. There is a world of difference when a manifesto commitment is subsequently proved to be unlawful but, at the time, was not unlawful. What happened last week was the announcement of a fresh interpretation or an up-to-date interpretation. If those in metropolitan areas that have acted in a similar manner to London knew that they were acting unlawfully, their behaviour would be reckless. What the Greater London Council has done is to try to get out of a depressing, dreary, defeating merry-go-round of declining passenger totals, increasing fares, poorer services and increased congestion in central London by taking a bold and imaginative step. If it did not gain freedom in one bound, it would at least be a step in the right direction. Two factors apparently caused the GLC to fall foul of the Law Lords. The council's interpretation of the law is not that of the judges. No one argues that the GLC or, indeed, anyone else should be above the law. The law, as now defined, narrowly and what it was universally thought to be, until the judgment, requires urgent action by the Government. The law must be put in a state consistent with the manner in which it has operated for more than 10 years. My hon. Friends the Members for Hackney, Central and Lewisham, West in powerful contributions, have asked the Government to treat Opposition Members and the GLC in particular in the same way that they thought it right to treat their Secretary of State when, in error—not as a result of a wrong judgment—he followed a course of action that was subsequently proved to be unlawful. A law or a Bill of Indemnity of one kind or another was enacted to put the matter into its proper perspective. The Conservative Party lays great store on the will of the people. The people of London voted emphatically for a tranport policy that has been faithfully carried out by the GLC. The Minister may care to say something to Londoners about his plans to improve our transport system. The GLC's attempt to improve transport is now in jeopardy because of the Law Lords decision. I hope that the Minister will tell us what the Government intend to do—not to pre-empt or anticipate tomorrow's debate—but about the situation generally. Finally, what are we to make of the Government's sheer deceit in terms of rates and local finance as we look forward to next year? All assumptions upon which grants will be made assume that the total pay bill will be raised by no more than 4 per cent. In view of the settlements that have already been made, does anyone seriously doubt that the final figure will be less than double that amount—in the region of 7 per cent. to 8 per cent.? Is it not deceitful to pretend to give local authorities a sum of money with a built-in assumption that clearly cannot be maintained? Non-salary costs are assumed to be 7 per cent. With the latest figure at 12 per cent., does anyone seriously doubt that the inflation rate will be in double figures for most, if not all, of next year? With the rate support grant slashed yet again—down to a disgraceful 56 per cent.—and with totally inadequate built-in assumptions, how can we hope to sustain standards in education, social services, transport, and so on? The Local Government Finance (No. 2) Bill may or may not give the Secretary of State what he has striven for for more than two and a half years—the complete subjugation of local government to his will. His determinations will tell a council how much, in his opinion, its needy should have spent on them. The Secretary of State will say whether a council has overspent his targets. The Secretary of State will decide how much over his levels it can spend. The Secretary of State will relieve, or not, the council of penalties that he has devised and that he will apply, or not. The welfare of every man, woman and child in the land will be in the gift, not of locally elected councillors but of the Secretary of State. It is a nightmare. Who would have forecast that 1984 would arrive in 1981? It is to the credit of many Tory councillors that they share our condemnation of this anti-democratic municipal despot. London has been clobbered by this Government because the Labour majority has taken seriously its responsibility to tackle major social needs in a positive way. If we asked Londoners what improvements they want they would mention the state of our roads, the cost of public transport, the quality and availability of housing, the desperate need to stimulate jobs—for all, but especially for young people—improved safety and service from the fire brigade and ambulance services, and fully comprehensive social services for all Londoners. If Labour London had not attempted to solve some of those problems, it would have failed in its duty to Londoners. It has not failed London; the Government have.5.44 am
I begin by complimenting the hon. Member for St. Pancras, North (Mr. Stallard) on introducing the debate. I do not want to detract in any way from his glory as leader of London's Labour Members of Parliament, but perhaps I should point out that one or two of the sheep seem to have escaped the pen. Recently, all the Members for Islington have abandoned the Labour Party. The hon. Member for Woolwich, East (Mr. Cartwright) has left the fold, as well as the hon. Member for Hackney, South and Shoreditch (Mr. Brown), and recently the hon. Member for Mitcham and Morden (Mr. Douglas-Mann). We hope that some Labour Members will be left in London to carry the flag for the Labour Party as these debates come round each year.
The hon. Member for St. Pancras, North said that the debate had some topicality. From my days in opposition, I remember the regular complaints from London Members that not enough time was devoted to London affairs. However, with a full day last Friday devoted to communications in the South-East, nearly three hours' debate tonight on London's affairs, and with a Standing Order No. 9 debate tomorrow on London transport, no London Member can complain that the affairs of the capital have not received adequate attention from this House. The hon. Member for St. Pancras, North asked whether the impact of the decision from the Law Lords last week would have any effect on other services. I have to tell him that the Lords' decision has no impact at all on social services, education or any of the other services provided by London boroughs. The hon. Gentleman drew attention to the position of Camden, and he made great play of the fact that, like ILEA, Camden will not receive any block grant next year even if it spends in line with the Government's public expenditure guidance. But he did not say that Camden, like ILEA and like the City of London and Westminster, which have not received rate support grant for many years, enjoys some of the highest per capita rateable values in the country. After all, block grant is a method of equalising grant and, quite properly, it recognises the inequalities of resources as well as the inequalities of needs. The hon. Gentleman criticised the grant-related expenditure as being subjective. The Government have tried not to make these assessments subjective but to devise formulae that relate the needs of various communities to the grant that the Government give them. We have tried to move away from the rather subjective formula that existed before the introduction of the GREs. The hon. Gentleman spoke about alcoholics and the homeless, and I know of his interest for many years in trying to tackle the very serious problems facing both types of communities. We have earmarked £12 million for an initiative on hostels to help the homeless, and London will benefit from a large share of that. We also have plans to replace Camberwell, which has to close in 1984. We have earmarked a large sum of money to make sure that those who look to Camberwell for accommodation will not be homeless. It has to be recognised that during the 1980s our school population will fall by roughly 17½ per cent., and local education authorities have to respond to that fall in demand by adjusting the provision that they make. ILEA faces an above average fall in its pupil numbers, and it has to adjust the service that it provides in the interests of ratepayers. But we have no plans to dismantle the Inner London Education Authority, which is what the hon. Gentleman accused us of doing. The hon. Gentleman made several remarks about the judgment by the Law Lords, and this will be the subject of a debate in a few hours. But the statement that we have made today on the transport supplementary grant demonstrates that the GLC has done relatively well, It has been allotted a reasonable level of resources for the payment of revenue support. It is the view of Ministers that there is no need to change the law to allow revenue support to be paid, and the Lords judgment makes this quite clear. It is worth remembering that the GLC's low fares policy was unanimously found to be illegal on two grounds: first, that the GLC could not require London Transport to disregard its statutory duty to break even financially as far as practicable; and, secondly, that the GLC had neglected its fiduciary duty to ratepayers and had struck the wrong balance between public transport users and ratepayers. But the verdict did not say that the payment of any revenue support was illegal. Indeed, three of the Law Lords accepted that London Transport could budget on the basis that a subsidy would be paid. The Government support the payment of reasonable subsidies to public transport, and the transport supplementary grant is quite consistent with that policy. The settlement for London includes acceptance of £89 million for revenue support for next year. A number of hon. Members implied that London had not done well out of the rate support grant settlement announced today. In 1982–83, the Greater London area will do better than it did in 1981–82 and, if it sticks to the spending target set by the Government, it will do better than in 1980–81 and better than in any year since 1975–76, with the exception of 1979–80. Therefore, I reject the accusation that has been hurled at us that London has been discriminated against. On the contrary, as the The New Standard pointed out last night, this is a good settlement for London ratepayers, which will leave them roughly £350 million better off. My hon. Friend the Member for Ravensbourne (Mr. Hunt) made a perceptive speech in which he made some pertinent comments about the extravagances of ILEA. He also pointed out that in the rate support grant that we have just announced there are rewards for those local authorities that have observed our requirements for good housekeeping. My own local authority, Ealing, has benefited from the settlement, as my hon. Friend the Member for Ealing, North (Mr. Greenway) mentioned. My hon. Friend the Member for Ravensbourne also identified some areas of potential economy that the GLC could usefully enter, particularly with regard to the news sheet, which costs Londoners about £½ million. Those of us who have read it find it very poor value for money. My hon. Friend also made some perceptive comments about the GLC's extravagance in the recruitment of its personnel and the way in which it has become a soft touch for almost any extremist group or dubious cause that goes to it for money. The hon. Member for Hackney, Central (Mr. Davis) had the perception to begin by dissociating himself from Ken Livingstone.I did nothing of the sort. I said that I did not always agree with Mr. Livingstone. I did not dissociate myself totally from his policies. That is a misrepresentation.
When the hon. Gentleman reads in Hansard what he said he will find that he prefaced his remarks by distancing himself somewhat from the policies of Mr. Ken Livingstone.
The hon. Gentleman went on to ask what the Government proposed to do in the way of an indemnity for the GLC and the London Transport Executive. He raised this point on Friday, and I have looked at the response of my hon. Friend the Under-Secretary of State for Transport. I cannot usefully add to what my hon. and learned Friend said. The case that the hon. Gentleman has put forward does not parallel that of the Lambeth, Southwark and Lewisham area health authority. In that case the area health authority was suspended and some commissioners were put in. It was a matter of indemnifying the commissioners for the actions that they carried out during the period in question.That is wrong.
Not at all. In the case of the GLC and the London Transport executive there has been no comparable suspension of an authority, and therefore there is no comparable need to indemnify commissioners.
The Minister and other Ministers were indemnified; anybody who was involved was indemnified, not because any actions had been taken, but because action might be taken. It is conceivable here that action might be taken. If there is sauce for the goose, there should be sauce for the gander as well. There is no fundamental difference in principle between these two situations.
I cannot accept that the case that the hon. Gentleman puts forward is on all fours with that of the Lambeth, Southwark and Lewisham area health authority. My hon. and learned Friend the Under-Secretary of State for Transport said on Friday:
I cannot add to what my hon. and learned Friend said, but I shall pass on the hon. Gentleman's anxieties to my right hon. and hon. Friends who will deal with the debate that is to take place later today."In the hospital case there was the possibility that individuals might face claims for compensation for unlawful acts. As far as I am aware that question has not yet arisen in this case. If such a situation arose, it would no doubt be considered with care by the Law Officers. No one is claiming that anyone in the GLC personally deliberately broke the law."
If certain people were in jeopardy as a result of actions taken because of the Law Lords' decision, would the Government rule out an indemnity Bill or other action to protect them?
That is what I read to the House a few seconds ago. In the debate on Friday my hon. and learned Friend the Under-Secretary of State for Transport said:
That is the position. The hon. Member for Hackney, Central referred to deprivation in Hackney. I was in Hackney last week. I opened a very promising development by a housing association. What impressed me, when talking to people who lived in that development, was the high level of rates. The rents in this development were £18·50 per week; the rates were £15. I was told by a representative of the housing association that it was not unusual for rates to be higher than rents. It is incumbent on the London borough of Hackney to ensure that it does not impose unnecessary burdens on its ratepayers. High rates must add to the unemployment about which the hon. Gentleman protested. The Government will not seek to inhibit the initiative that Hackney has taken to tackle the problems facing the disabled in the area to which the hon. Gentleman drew attention. My hon. Friend the Member for Kensington (Sir B. Rhys Williams), in a philosophical speech, asked about the future of local government finance. As he knows, we have recently published a Green Paper. One of the options in that Green Paper is to remove education from the responsibility of local authorities and to place it fairly and squarely on the Government. If he favours that option, he is free to press it on the Government. We have not yet formed a view on the several alternatives considered in the Green Paper or on reforming the present system, but we hope to have the widest possible consultation. I know that my right hon. Friend will consider carefully the interesting points made by my hon. Friend, particularly about the division between capital and current account. The hon. Member for Lewisham, West (Mr. Price) made a fairly lengthy speech. In the first 10 minutes he dealt with the franchise. The Government have no plans to change the basis of the franchise, so that takes care of the first 10 minutes of the hon. Gentleman's speech. In the second 10 minutes the hon. Gentleman dealt with ILEA. We have no plans to abolish ILEA. That deals with the second 10 minutes of the hon. Gentleman's speech. In the remainder of his speech the hon. Gentleman dealt with the GLC judgment. I do not know whether the hon. Gentleman has had time to read the full texts of the judgments by the Law Lords. I have not, and I suspect that many of my right hon. and hon. Friends in the Government have not. It is important not to rush to a hasty decision on this matter. It is incumbent on the GLC, Ministers and London Members of Parliament to read those judgments and then to give a considered opinion. There is no threat to London pensioners' free fares. These are expressly provided for in a separate statute. My hon. and learned Friend the Under-Secretary of State for Transport made that clear on Friday in column 562 of Hansard. Therefore, there is no question of frightening London's pensioners into thinking that their free fares are at risk."If such a situation arose, it would no doubt be considered with care by the Law Officers."
How can Ministers substitute themselves for the Law Lords on an issue of this kind when they are following a decision that we all accept went against the legal advice? Is the Minister saying that he can conceive of no circumstances in which the Law Lords might find the pensioners' free fares to be illegal?
If the hon. Gentleman addresses himself to column 562 of Hansard, he will see that my hon. and learned Friend the Under-Secretary of State for Transport said:
That power has never been challenged in the courts."The GLC and London Transport have clear authority, under section 138 of the Transport Act 1968, to grant concessionary fares to pensioners. That is not affected in the slightest by yesterday's House of Lords judgment."—[Official Report, 18 December 1981; Vol. 15, c. 562–80.]
Suppose it were.
It is open to anyone to challenge that measure through the courts, but it has been on the statute book for 13 years and no one has seen fit to do so. There is no parallel with recent events, because last May the position dramatically changed with the Labour-controlled GLC's new fares policy. If the hon. Gentleman is seeking to scare London's pensioners by making out that their free fares are at risk, he is doing them a grave disservice.
My hon. Friend the Member for Ealing, North (Mr. Greenway) made a thoughtful speech and began by remarking on the problems facing cyclists in London. I associate myself entirely with those remarks. He also pointed out the high cost of patronage in County Hall and made the valid point that there is a trade-off between higher rates and employment. Authorities cannot go on and on increasing rates unless those who invest in London cut their staffs. I shall pass on to my right hon. Friend the Secretary of State for Transport my hon. Friend's reservations about the Hayes bypass. I know that his constituents recently had a rough time with the dramatic changes to the A40. The hon. Member for Edmonton (Mr. Graham) made a conciliatory speech compared with some of his contributions. However, he has misjudged London's position in the recent rate support grant. He has jumped quickly to conclusions about the impact of the rate support grant on Enfield. I am confident that the Tories in Enfield—about whom he spoke at great length and of whom he clearly has close knowledge—will do their best for Enfield's ratepayers and will ensure that the rate increase for the current year is held to a reasonable level. The hon. Member challenged us on what we would do about London Transport. The Government have consistently made it clear that we prefer capital investment to revenue subsidies. That is a clear distinction between the two sides of the House. The debate has come at a very opportune time because of today's announcement of the details of the rate support grant for 1982–83. Hon. Members may not yet have had time to study the figures and it may, therefore, be helpful if I outline briefly some of the decisions affecting London. Indeed, 1982–83 will be the second year in which the rate support grant has been distributed according to the block grant system introduced by the Local Government, Planning and Land Act 1980. Under that system, the needs assessments which measure the costs faced by individual authorities, and which are used to determine their grant entitlements, are known as grant related expenditure assessments, or GREs. For London authorities, the GREs are set following the same principles as apply elsewhere in the country, although they include a component designed to reflect the extra costs, such as London weighting, faced by authorities in London. That, taken by itself, would mean that authorities anywhere in the country that provided similar levels of service would need to levy similar rate poundages to do so. London has, however, for some years been protected from the full effect of rate poundage equalisation, since—because of the London's very high rateable values—full equalisation would lead to excessively high average rate bills. That protection is known as London's poundage discount, and it is given effect by means of a multiplier determined under section 59 of the Local Government, Planning and Land Act 1980. My right hon. Friend the Secretary of State proposes that the relative position of London compared with the rest of the country should be improved for 1982–83 by allowing London as a whole to benefit from a slightly larger poundage discount of 24·4 per cent., compared with 19 per cent. last year. That change—which, I am sure, all London authorities and all Members of Parliament for London constituencies will welcome—means that on average rate poundages will be only three-quarters of what they would be if they were fully equalised. The disparity in rateable values is most marked in the inner boroughs, and it has been customary to allow inner London to benefit from a larger discount than outer London. Again, my right hon. Friend the Secretary of State proposes to continue that practice and to set multipliers that imply an inner London poundage discount, compared with outer London, of 15 per cent. My tight hon. Friend has also accepted the unanimous recommendation of the authorities concerned that ILEA should be given the same block grant multiplier as the inner London boroughs. Another peculiarity of the RSG settlement which is of great importance to the authorities concerned is the rate equalisation scheme operated under the London Government Act 1963. That scheme is necessary to tap some of the immense aggregate rateable value of the cities of London and Westminster and to make some of their resources available to meet the needs of other London authorities. My right hon. Friend proposes that the size of the contributions made by those two authorities should be re-priced in line with the Government's inflation assumptions, and that means that their contributions will increase from £39 million to £41 million and from £22 million to £23 million respectively. My right hon. Friend understands that that has the support of both the contributing authorities. Domestic rate relief in their areas will be set at 35·3p and 25·9p, so that their domestic ratepayers continue to be fully protected from contributing to the scheme. There will be other changes in the settlement, applied equally across the country, many of which w ill affect London authorities. Together with the increase in the London discount from 19 per cent. to 24½ per cent., they add up to a rate support grant settlement which is one of the most generous towards London in recent years. It is now up to the authorities to play their part. If they spend in line with the guidance we have issued, London authorities will receive 16·9 per cent. of the country's block grant—the highest proportion for many years—and, in consequence, rate increases generally will be low. I do not want to make any predictions about the rate levels, but as The New Standard stated yesterday, London's domestic, commercial and industrial ratepayers could save many millions of pounds if their authorities follow our advice. However, if they disregard it, the ratepayers of London will know who to blame. I hope that after studying the settlement, hon. Members will be satisfied that the Government have taken into account the special circumstances of London and that London can be confident that its interests are in good hands under the present Administration.Laurence Scott Ltd, Openshaw (Industrial Dispute)
6.7 am
I am raising under Class IV, Vote 4, the Department of Trade, the question of helicopter flights into the Laurence Scott works in Manchester.
I shall briefly mention some of the matters that led to those flights. On 19 April this year there was a sudden announcement from the management of that factory that it was to be closed three months later. The firm of Laurence Scott and Electrical Motors had been operating in the area for over 90 years, had a substantial order book at the time and was the most profitable of the factories in the group. It had been taken over in the previous September by Mining Supplies of Doncaster and, at that time, there were assurances that the factory would remain open. Indeed, short-time working compensation was claimed and paid up to the time of the announcement. The Department of Employment was misled by the management of the parent company, since the closure decision was taken weeks before the announcement was made and the Department informed. A week or two later the workers occupied the factory. That occupation was ended by the storming of the premises by bailiffs at 3 o'clock in the morning, creating much noise for the people who lived and, one hopes, slept in the area around the works. Even though the workers had been evicted from the factory, picketing continued and, because drivers would not take their vehicles into the premises, very little machinery was moved out. On the morning of 4 November two helicopters flew low over my constituency and over that of my right hon. Friend the Member for Manchester, Openshaw (Mr. Morris) and, landed inside the works, and the men inside the helicopters then removed machinery. I emphasise that our purpose in raising the issue is not to dwell on the dispute. We are concerned with public safety and public fear. The area around the boundary between our constituencies is mainly one of terraced houses cheek by jowl with factories, shops, offices, a primary school and churches. A heavily trafficked trunk road, the Ashton old road, runs through it. The wards concerned are both inner city wards of the Manchester and Salford partnership area and both have many problems. We question whether there was adequate regard for public safety, bearing in mind the noise that the local inhabitants suffered and the danger that they faced, and whether that was considered by the Civil Aviation Authority before the flight was approved. The chairman of Mining Supplies, the parent company that had ordered the raid, suggested on television during the weekend that the local children had rather enjoyed the experience. That is not the impression that we gained from children and teachers in the area and it was not the feeling of many adults. During the weekend I talked to a person who had attended a funeral service at the local church at the time of the raid and it was clear that its effect had been shattering. My right hon. Friend the Member for Openshaw has been in correspondence with the CAA and he will be going into some detail on its rules. I take this opportunity to thank him for the enormous amount of work that he has done over the dispute. The Laurence Scott factory is in his constituency, but many of its workers come from my constituency and from neighbouring areas. I am sure that I speak for all my right hon. and hon. Friends who represent constituencies in the area when I pay tribute to his efforts in seeking a fair deal for our constituents who work at Laurence Scott's and for those who live in the area who were shocked by the helicopter raid on 4 November. I repeat that our main concern lies not with the dispute but with public safety in a crowded area. Are the Government satisfied that the CAA ensured that there were adequate safeguards for the public before the flights were approved, and that there was no danger to the public? This was probably the first time that a picket line had been broken by the use of helicopters. It may not be the last occasion and the Government and the CAA must satisfy themselves beforehand that flights into inner city wards present no dangers to local people.6.13 am
My hon. Friend the Member for Manchester, Gorton (Mr. Marks) has ably outlined the background of our shared concern about the individual helicopter flights to which he has referred, but I want for a moment to concentrate my contribution on what actually happened on the morning of 4 October when the two helicopters came in at roof top level, over the Clayton Brook junior school and over nearby terraced houses, and alighted within the premises of the Laurence Scott factory.
Two helicopters came down and two took off. The reports that I have seen suggest that one of the helicopters was overloaded and had difficulty in taking off, had to reland and had to disembark some of the goods that had been placed in it. Apparently it subsequently took off again in safety. That is what actually happened, and in effect what took place was that the manager of the Laurence Scott company, the CAA, Cabair Ltd., the helicopter company, and the Greater Manchester police were all involved in and embarked on an escapade—that is what it was—to lift a number of electric motors from a strike-bound factory without giving a single thought to the consequences and the public safety of my constituents. That is the simple fact that concerns my hon. Friend the Member for Gorton and my other parliamentary colleagues who represent the city of Manchester. I wish to consider the individual roles played by those four organisations. The House will accept that I do not normally lend myself to criticising the actions of the police generally. It is more in sadness than in anger that I refer to the part played in the escapade by the Greater Manchester police. Before the operation of the two helicopters, officers of the Greater Manchester police force placed more than 100 mounted and foot policemen around the factory, while six men in black masks and goggles landed from two helicopters to lift the electric motors to which I have referred, which were part of a contract for South Africa. I suggest that neither the chief constable of Greater Manchester nor any of his officers ever questioned whether the helicopters had transgressed the air safety regulations before countenancing the use of 100 mounted and foot police officers in such a manner that morning. I have listened to the arguments advanced by the chief constable since then. He argues now that he placed the policemen around the factory because he anticipated trouble from what he describes as 250 pickets. The police knew, as did everyone in Openshaw, that there were only 29 pickets on duty that morning. It has been said by some of my constituents with a sense of humour that if anyone wishes to break in to factories now, probably his best defence would be to plead that he was trying to break a picket line. He would get not only the understanding of the Greater Manchester police force but its positive help and support. I turn now to the part played in the escapade by the Civil Aviation Authority. I wrote to that organisation in early November asking whether the two helicopters had breached the air regulations. I received a reply on 10 November saying that the matter was being investigated. On 16 November I received a seven-line letter from a gentleman called Mr. R. Worthing, who is the group director for safety services. He said:I have considered the air regulations. I telephoned the director-general of the operations division of the Civil Aviation Authority and referred him to rule 5, dealing with low flying, and the associated rule 23. I argued the case with the director-general and he said that he would further look into the matter. I received a letter dated 18 November which stated:"Our investigation has been completed and as far as we are concerned there would appear to have been no breach of the Air Navigation Legislation and, accordingly, there is no action called for by the Authority."
I was encouraged to learn that the CAA was arranging an action replay of the flight. It had previously explained that rule 5(b) stated:"I'm afraid that Mr. Worthing was wrongly informed. 1 find that our inquiries are not complete and it has yet to be established whether or not there appears to have been a breach of the air navigation legislation in the flights conducted by these two aircraft. Some of the people we wish to interview are away until the middle of next week but I have asked for the inquiries to be completed as quickly as possible and for them to include a survey by one of our own helicopter pilots of the landing site used and the routes flown."
That is a clear prohibition on the operation of helicopters below 1,500 feet. The CAA pointed out that the strict prohibition can be circumvented by the issue of a special visual flight reference clearance. The helicopter company has to get a clearance from the air control unit at Manchester airport to proceed to a geographical air space and receive an assurance that it is safe to operate in the air space. I spoke to the air control unit, which said that it had given clearance for the two helicopters to fly to Openshaw. I asked whether it knew that they would land and take off in one of the most urbanised areas of the north of Manchester, and was told that the people involved had no idea why the two helicopters were flying to Openshaw and were unaware that they were to land and take off within the factory premises of Laurence Scott. The helicopters were embarked on an enterprise to breach the picket line of a strike-bound factory without the CAA knowing it. The Greater Manchester police put 100 policemen around the factory without inquiring whether the helicopters were breaching the air regulations. Cabair Ltd. operated the two helicopters, when a Manchester company had refused the commission because the area in which it was expected to operate was heavily built up. It was deplorable that the management of Laurence Scott Ltd. obviously had no concern for the interests or safety of my constituents. As my hon. Friend the Member for Gorton said, the area is particularly urbanised. It is extremely congested in terms of terraced housing, local schools and local residences generally. I am concerned about the rules. I have shown how the Civil Aviation Authority explained that the helicopters circumvented rule 5, which prohibits the flying of helicopters below 1,500 ft, by getting a special visual flight reference clearance from the air control unit at Manchester airport. On 14 December, the director-general of the operations division of the CAA, Mr. Walker, wrote to me again. His letter followed the action replay flight by a CAA helicopter on 27 November. He said:"A helicopter shall not fly below such height as would enable it to alight without danger to persons or property on the surface, in the event of failure of a power unit. Except with the permission in writing of the Authority and in accordance with any conditions therein specified a helicopter shall not fly over a congested area of a city, town or settlement below a height of 1,500 feet above the highest fixed object within 2,000 feet of the helicopter."
The director-general of the operations division was introducing yet another criterion for circumventing rule 5. How does one determine what is "an ordinarily competent pilot" in terms of public safety? What are the ground rules for ensuring public safety with regard to the operation of helicopters in heavily urbanised areas? There do not seem to be any rules for the regions. The rules refer almost wholly to London. I am demanding an independent investigation of the incident. The view of my constituents, having listened to the explanations that I have given them on the basis of correspondence that I have received from responsible officers of the CAA, is that there has been an official cover-up. My constituents are not satisfied with the way that the Greater Manchester police proceeded in the matter. They are not satisfied with the way that the Civil Aviation Authority proceeded, and they are not satisfied with the way that the management of Laurence Scott Ltd. or Cabair Ltd. proceeded. I believe that my constituents and their interests should have been paramount in this operation."Having carefully studied the report I have concluded that there are no grounds for supposing that there was any breach of the air navigation legislation in the course of the flights on 4 November. The routes followed included sufficient open ground that, given the heights at which the flights were reported to have been made and the approach and take-off paths used, it could not be shown that, in the event of an engine failure, an ordinarily competent pilot could not have landed the aircraft without danger to persons or property on the surface".
6.30 am
I do not know whether I can show cause for satisfaction on behalf of the Government in the face of the somewhat blanket lack of satisfaction which the right hon. Member for Manchester, Openshaw (Mr. Morris) has felt so far, but I shall try.
When I saw that this matter had been set down to be discussed, at the behest of the hon. Member for Manchester, Gorton (Mr. Marks) I was very pleased and, even at this somewhat devitalising hour on a winter morning, I am still glad of the chance to get on the record some details about the rules that affected the matter—rules that are, apparently, not widely understood. The hon. Member for Gorton asked whether the Civil Aviation Authority ensured that there were adequate safeguards for the public. The answer is that it did, and I hope to prove it to him in the course of my few remarks. The right hon. Member for Openshaw was, quite properly and naturally, concerned whether there were any rules governing helicopter flights over a congested area such as Manchester. The answer is that there are such rules, and those rules were fully obeyed. The CAA is fully satisfied that they were obeyed, and so am I. I hope that, after I have detailed to the right hon. Member how these things are settled, he, too, will be satisfied. Responsibility for the development and enforcement of the air safety regulations lies, as the House knows, with the Civil Aviation Authority, which has carried out in this case a full investigation into the flights in question. It has established that the helicopters, while airborne, sought permission from the air traffic controllers to enter the Manchester air traffic control zone under a Special Visual Flight Rules clearance. Permission was sought to land in the area of the Laurence Scott factory. This request was granted by air traffic control, with an instruction to remain below 1,500 feet.Will the Minister confirm the information that I received from the air traffic controller at Manchester airport—that the officers on duty there were completely unaware that the two helicopters were to land and take off within the premises of the Laurence Scott company?
I cannot confirm it specifically, because I have not spoken to them, but I should be extremely surprised if they knew. It would not be their business to ask. All they were required to know was whether the two helicopters of Cabair in this case fulfilled the safety regulations. They did so. They were not required to ask where the helicopters were to land or how long they were to be on the ground.
The rules of the air that govern flights in control zones are somewhat complex, but I shall do my best to clarify them for the purposes of the debate. With regard to helicopters, the aircraft must not fly over a congested area lower than 1,500 ft above any fixed object, within 2,000 ft of track, or below a height that will enable a safe landing to be made in the event of engine failure. In practice, it is the 1,500 ft rule that constitutes the overriding limitation, since almost all helicopters can meet the engine failure requirement from heights much lower than 1,500 ft by virtue of their auto-rotation capability. This facility enables a pilot to use the lift generated by the free rotation of the main rotors to make a controlled descent and landing. That may sound complicated to hon. Members. It did to me when I first heard it. Put very simply, it is the principle of the sycamore leaf, which falls to the ground steadily because of the lift that it generates as it turns round. Whenever a high level of air traffic movement occurs in a particular area it is usual for the authorities to provide an air traffic control zone. This, in fact, is the case at Manchester and a quite extensive zone has been set up round Manchester airport. Aircraft are not normally permitted to enter an air traffic control zone except under air traffic control, but in order not to inhibit the free and orderly flow of traffic, a special provision—I ask the hon. Member to note this, because this concerns the query that he raised—is included in the air safety regulations. As I have said, this is called a special visual flight rules clearance and is normally restricted to light aeroplanes and helicopters. It is a clearance that permits, when weather conditions allow, pilots of aircraft to navigate themselves visually into or through a zone in accordance with general instructions issued by air traffic control. In order to ensure separation from other traffic it is not uncommon for a SVFR clearance to require that the aircraft receiving it shall remain below 1,500 ft. When operating under a clearance of this nature the rule that requires an aircraft to be above 1,500 ft. when flying over a congested area does not apply, by definition. However, all the other safety provisions remain applicable, for example concerning load, airworthiness, and the licence of the pilots, which the hon. Member mentioned by implication, and that includes the rule which requires a helicopter to be able to land safely in the event of engine failure. If the terms of the SVFR clearance are such that a pilot considers that he cannot comply with the engine failure rule—or with any other safety provision, for that matter—he should reject the clearance and not enter the zone. The Civil Aviation Authority has concluded, as a result of careful examination of the report of its investigation, that there are no grounds for supposing that there was any breach of the air navigation legislation, which is what the CAA and my Department are concerned with. There was no breach whatsoever in the course of the flights made on 4 November 1981. It may be of interest to confirm that the report includes evidence from a CAA helicopter flight operations inspector who carried out a survey of the routes followed by the two helicopters and of the landing site that they used. I think that that is what the right hon. Member for Openshaw referred to as the re-run. This was specially gone over to make certain that it could be done without any breach of the air navigation rules.Will the hon. Gentleman confirm that one of the helicopters had to land a second time, after it had taken off, because it was overloaded?
No, I cannot confirm that. I had not heard that until the matter was raised in this debate. Of itself, that would neither validate nor invalidate compliance with the air navigation rules.
Surely the hon. Gentleman would accept that, if one of the helicopters was carrying an overload, it would have been impossible for it to conform with all the safety regulations to which the Minister has referred.
If the hon. Member is being tautological and is saying that if the helicopter was improperly loaded, it would be loaded improperly, he is right. If, on the other hand, the load was such that the pilot felt that it was not convenient to take off or he felt for other reasons that he did not want to load up in that way—not because it contravened safety or air navigation rules—that would be totally otherwise. I do not know what the reason was; the hon. Gentleman does not know. However, if the right hon. Member for Openshaw, who originally raised the matter, can find any more evidence to bring to bear on the subject, I shall be prepared to look at it. It does not necessarily imply that it was improper or contrary to the air navigation safety rules.
Quite apart from the rules of the air, it seems clear that the helicopters were not overloaded, nor were their registration marks obliterated. The CAA is satisfied, and so must I be on the evidence that it has submitted to me, that the flights in question were properly and safely conducted. I am also satisfied—that is perhaps particularly relevant to the remarks of the hon. Member for Gorton who asked whether we were satisfied that the general air safety navigation rules were sufficient—that the air safety legislation continues to provide the necessary degree of protection both for persons on the ground and for airborne traffic. In particular, I consider that the rules of the air that have existed broadly in their present form for more than 30 years, although refinements have been added over the period, have stood the test of time. It would thus be a retrograde step both for air safety reasons and in terms of orderly traffic flow if attempts were made to change the legislation on the basis of an incident that patently established the adequacy of current safety control methods. I am certainly sorry—and I apologise on behalf of the CAA—that the right hon. Member for Openshaw received two letters that appeared to contradict each other. If he would like me to take this up with the chairman, Sir Nigel Foulkes, I shall be glad to do so. In lieu of that, I apologise to the right hon. Gentleman. I must tell him, however, that I am not prepared to recommend a public inquiry, because I am satisfied that in this case no breach of air safety regulations occurred.British Leyland
6.41 am
This debate on the problems of Leyland Vehicles stands in the names of my hon. Friends the Members for Preston, South (Mr. Thorne) and Wolverhampton, North-East (Mrs. Short) and myself. My hon. Friend the Member for Preston, South is temporarily sick and—uncharacteristically, as he is an excellent attender of debates—cannot be in his place. My hon. Friend the Member for Wolverhampton, North-East has just returned from an official visit to India during which she met the Indian Prime Minister and, understandably, could not stay up all night. I make no apology for asking the Minister to stay up until 6.41 am—although I thank him for doing so—as this is an important and urgent matter. I am also grateful to my right hon. Friend the Member for Lanarkshire, North (Mr. Smith) and my hon. Friend the Member for Midlothian (Mr. Eadie) for being present. They have many constituents who work at Leyland Bathgate.
It would perhaps be courteous to begin with the problems that my hon. Friend the Member for Preston, South would have raised. Leyland Vehicles Lancashire throughout its history has been a major engine producer and a supplier of engines to the vehicle industry. The Ryder plan was geared to continue to support the major units with adequate investment. Investment has been planned for assembly and test facilities but very little to continue major unit production of engines, gearboxes and axles. Competitors, supported by their Governments, are continuing investment in major engine units as well as assembly, using it as an advantage to customers. In the view of the shop stewards and their convener, Alec Calder, Leyland seemed to want to retain the badge with other people's units. The shop stewards have passed a resolution to the effect that the announcement of 20 November and the company's policy will have a devastating effect on employment at Chorley, Preston and Leyland. Secondly, the majority of employees are employed in engine manufacture and this will generally affect the economic viability of the area. Leyland in the past has been successful owing to being peripheral to cars and packaged light cars—for example, Alvis and tractors, bus and truck are as one integrated and interchangeable labour force with a long history and proud to be world beaters. Alec Calder and his colleagues among the shop stewards whom I met last week at considerable length asked the question "Why change now?" That change means separating bus from truck. What is needed is the completion of the necessary investment to retain the manufacturing base and to keep the team together for developing our own engines. The trade unions have from time to time put alternatives to the company which, in their view, would lead it back to being a major manufacturer of major units, with the assembly of a wider competitive range of vehicles. The unions believe that a public inquiry should be set up to investigate management's motives in the use of public investment. It is the view of Leyland shop stewards, of various meetings sponsored by the AUEW and of my hon. Friend the Member for Preston, South that until an inquiry has taken place management should not go ahead with announcement of redundancies and the reorganisation. I endorse that view. An article in No. 7 of the magazine "Flash", which has been circulating in the Preston area says:It would be an improper use of time to go over that document, which is in the hands of the Department of Industry, but it requires an answer that can be provided only by a proper inquiry. Whether the Leyland management like it or not, the document has been widely circulated not only at the Leyland plant near Preston but at Bathgate and in Wolverhampton. The time has come when a serious answer must be given on the credibility or otherwise of such documents. At the meeting of North-West Labour Members, which I attended at the invitation of my hon. Friend the Member for Bury and Radcliffe (Mr. White), shop stewards expressed the fear that Leyland would become no more than an assembly force. As my right hon. Friend the Member for Lanarkshire, North and my hon. Friend the Member for Midlothian know, the prospect of Bathgate becoming no more than an assembly plant causes great concern to our constituents. There is great worry about the future of the whole plant, and not just about the tractor line. Many who work at Bathgate and Leyland think that overheads will soon become unbearable. A constituent who came to my surgery on Saturday, John Barrett, aged 60, works in the boilerhouse at Bathgate. He shook his head and asked what would be the overheads of the expensive boiler system if the tractor line were removed and half the factory closed. That situation can be repeated time and again. Many facilities are shared. That is the case that my hon. Friend the Member for Preston, South would have put because he is in close touch with his constituents and the shop stewards at Leyland. A public inquiry would be a wise move. I shall be asking the Minister on several occasions whether the Government have had any reflections on the need for such an inquiry. One of its terms of reference should be whether this country needs at least one British owned volume tractor producer. I turn now to Guy Motors about which not so much needs to be stated. A debate was initiated on 8 December by my hon. Friend the Member for Wolverhampton, South-East (Mr. Edwards) who wishes to be associated with the present debate. On that occasion, the Under-Secretary of State said:"Two weeks ago Industry Minister Patrick Jenkin revealed that British Leyland component plants were being sold off as they became profitable, confirming the unions' view that the Leyland plant amounted to nothing less than the sale of the century. What the Minister did not mention was the extent to which personal business interests of BL management have become involved in the privatisation process. In at least one division, the bus and truck plant at Leyland near Preston, most senior executives have been running private companies supplying BL with components, as we reveal in a special report on page 4."
No one wants to breathe down any manager's neck. However, when vast sums, amounting to £990 million of taxpayers' money, have been put into Leyland, the Government cannot pass by on the other side of the road when it comes to the disposal of major assets and closure. I do not agree with the Under-Secretary of State when he said that the closure of Guy Motors"As the House well knows, we have always taken the view that BL must be left to act commercially without constant fear of Government intervention."
The de-industrialisation of Britain—that is what we are talking about—has become far too serious to be left to the decisions of BL management so ephemeral that my reference on 30 November in Hansard to musical chairs is fully justified. This must be a national decision. My hon. Friend the Member for Wolverhampton, North-East says that the Landtrain, the major product of Guy, was developed originally by Scammell. Following teething troubles, it is now the company's pride and joy. Production is well on target and between last May and August, 45 additional men were taken on to speed up production. The bodies are sent for assembly abroad. The factory is working full time with some overtime. The factory also makes the Victory bus. Between now and next August, orders are already in hand for 607 Landtrains, 400 Victory buses and 200 vehicle kits. The Government cuts in local authority expenditure prevent local authorities ordering new buses. Many of these vehicles go to Third world countries. They are tough, powerful and particularly suited to tough terrain. Redundancies will start in March and hard working people in the plant will lose their jobs by August 1982. The Landtrain is to be transferred to Bathgate. The tractor division is to be sold to private enterprise, 900 jobs being lost at Bathgate. This situation, according to my hon. Friend, is causing considerable concern to those at Wolverhampton. The workers at Wolverhampton, at Leyland and at Bathgate feel that they are involved together in this matter. I have been asked by my hon. Friend the Member for Wolverhampton, South-East to draw attention to a document that has been issued under the signature of S. L. Burton, plant manager, concerning redundancy terms. Mr. Burton says:"is a decision that only BL can take."—[Official Report, 8 December 1981; Vol. 14, c. 841–43.]
My hon. Friend asks me to point out that this is distasteful. A number of issues arise when companies that are 99 per cent. publicly owned put offers in these terms for employees "to go quietly", although this may be a subject appropriate for another debate. In regard to the position at Bathgate, I have intervened on five occasions since November. It would be wrong of me to take up the House's time in going over those detailed interventions. However, I have given the Minister notice that I intended to draw to his attention a letter that I wrote to the Lord Advocate, and that I wish to insert into this debate in the hope that he will make a preliminary comment on a letter of which he has had notice:"I understand that with effect from 4 January 1982 employees at Guy intend to resist the orderly transfer of material, plant and equipment to other plants within the company. My purpose in writing to you is to point out that by taking such action you will be effectively rejecting the special plant closure payments previously offered by the company."
"Dear Lord Advocate,
As you know, I am not a lawyer myself and do not presume to be an amateur expert. However, I do understand that there may be significant differences between Scots law and English law in relation to the financial dealings of firms who have received vast amounts of public and local authority cash. As a lay MP, I have been perusing the Law Report of the 18th December, Regina v. the Greater London Council and another ex parte Bromley borough council before Lord Wilberforce, Lord Diplock, Lord Keith of Kinkel, Lord Scarman and Lord Brandon of Oakbrook. I would be most grateful for any comments that you and your advisers have on the following points.
1. The alleged authority for allowing British Leyland to dispose of the loss of assets, given that the company is 99 per cent. plus publicly owned resides in your party's manifesto to encourage the privatisation of certain assets. But apparently manifesto commitments do not bestow authority. In the words of Lord Wilberforce:
I asked the Lord Advocate whether I could ask for guidance as to what the position is in Scottish law. Would he say that the views of Lord Wilberforce and Lord Diplock would be wrong in Scottish law, and secondly:'It makes no difference on the question of legality, as opposed to reasonableness, whether the impugned action was or was not submitted to or approved by the relevant electorate; that could not confer validity on ultra vires action. Lord Diplock complains that the GLC was irrevocably committed to carry out a financial action whatever might be the additional cost to the ratepayers because of a pre-announcement in the election manifesto issued by a political party, and drew the conclusion that it was erroneous inlaw.'"
I ask the Minister to reflect on the general issue. If the Bromley ratepayers have rights in law, and are financially disadvantaged as a result of electoral commitments, what are the rights of ratepayers in West Lothian, who are no less damaged by actions justified on the basis of electoral commitments? What is sauce for the GLC goose is equally—is it not?—sauce for the Government-controlled British Leyland gander. Both cases revolve around the identical central issue of electoral commitments deemed by the Law Lords to be illegal, but involving people knowingly deciding to dispose of public assets at a loss. I referred to the actions of Lothian regional council and the submission to the Scottish Office of John Crichton, the convener of Lothian regional council, that alternative strategies are being completed for the continuation of a reduced scale of tractor production at Bathgate, based on the size of market that the putative purchaser, Marshall and Son has declared it hopes to sell; and utilising only the reduced production area that will be available if the tractor line is closed. These strategies are being worked out by knowledgeable and senior staff at Bathgate. It is surely imperative that these alternatives should be properly discussed and investigated before the final legal commitment to Marshall is made. The respite provided by awaiting completion of the CNAG's inquiry will simultaneously give an opportunity to investigate the alternative strategies for retaining production of tractors at Bathgate by Leyland Vehicles Limited or by other means validated after the SDA's assessment of the options. I should like to know the reaction of the Scottish Office, and I am grateful to the Under-Secretary of State for Scotland for being present. I refer again to the Government's assessment of a possible upsurge in the tractor market. On 14 December, the Under-Secretary of State for Industry informed me:"as the Lord Advocate knows, British Leyland, Bathgate has benefited not only from public money in the form of regional policy grants but from substantial sums of ratepayers' money. If the ratepayers of Bromley are deemed to have rights, what about the ratepayers of Bathgate? Do they not have rights? In proposing to sell off parts of the tractor assembly line and related rights in order books has not British Leyland, a publicly owned corporation, in the words of Lord Scarman 'abandoned bus mess principles and that was a breach of duty owed to ratepayers'. If Lord Scarman holds that it is wrong in law in England, I would welcome your opinion on the position in Scots law. It is not irrelevant to add that neither of the councils, West Lothian district nor Lothian regional, were consulted by British Leyland before announcing the letter of intent to sell the tractor facilities and neither they nor the rest of us have any notion about the price on which there may be agreement. … But the Lord Advocate will remember that assets of £2 million plus book value were sold off at Linwood for around £5 million."
Is there any idea that there could be an upsurge in the tractor market? It is felt that the farmers have had a reasonably good year, many of their tractors are becoming clapped out, and the disposal of tractors may coincide with an upsurge in the home market? I should be grateful for a Government view on that. I reiterate the background, and perhaps it is best summed up in a resolution that was passed by the teachers in West Lothian. The local EIS branch resolution said:"No official estimates are available. New registrations of agricultural tractors were 30,000 in 1979 and 22,000 in 1980. Registrations in the first nine months of this year are 7 per cent. below the corresponding period of 1980."—[Official Report, 14 December 1981; Vol. 15, c. 20.]
I quote Mr. Charles McPhillips, the secretary of the Educational Institute of Scotland, because there is a point about which I and a number of others feel very strongly. Of course, it is tempting to take redundancy pay. It ill-behoves any of us to criticise individuals who decide that, in the nature of their family circumstances, they should take redundancy pay. It is very easy for people to tell them that they must protect their jobs, but it is another matter when heads of families have to take decisions to do it. Having said that, it is also true that, in a sense, these are jobs that belong to the community and not entirely to their present occupants. Many of the teachers feel, like others, that we have to be concerned about the young people of a whole area; it is not just simply the present occupant of a job. He may have the right to make a decision in relation to himself. I do not deny that. But there is a general point that these in another sense are community jobs and should not simply be surrendered without a great deal of discussion and argument. I refer to a written question on 14 December 1981, in reply to which the Under-Secretary of State for Industry told me:"The ABM joins with the workers of British Leyland and Plessey in Bathgate in absolutely deploring the recent announcement of redundancies at the Bathgate plant. Further, this ABM on behalf of the local association pledges all the support it can give to the workers at the Bathgate plants in any efforts they may make to prevent job losses."
I am puzzled, as others are, about Government records. I do not think that I have ever asked an unreasonable written question simply to fish out obscure statistics for the sake of getting them. Why is it so difficult to identify in the Government records what has gone to the Bathgate plant over the years? On Thursday 26 November 1981, the Minister of State informed me:"These funds have been provided for BL's investment and restructuring programmes generally, and have been used by BL as part of its general funding. It is not possible to state how much of this funding—as opposed to private sector loans—has been used at Bathgate. Since all this funding constitutes the Government's shareholding in BL, repayment would only be possible if the shares were sold."—[Official Report, 14 December 1981; Vol. 15, c. 23.]
I do not understand this. Surely each plant, somewhere in the Government's records, has a tag against it showing how much money has been allocated to it. Therefore, perhaps the Minister will write to me, if he does not find it appropriate to answer today, about the whole question of Government records and the difficulty of obtaining information. Mr. David Morrison, chief executive officer of West Lothian district council, says, for example, that the capital cost of providing district services by the former West Lothian county council for the coming to Bathgate of the British Leyland factory and the subsequent development of Blackburn was: Blackburn branch library £30,037; Blackburn town development £162,022; new houses at Blackburn-Murrayfield phase I £1,200,000; Murrayfield phase II £1,340,915; Murrayfield phase III £890,866; temporary site £182,547; town centre maisonettes £98,814. All of that was local money. Surely in those circumstance the local people have at any rate some right to be consulted. We return to the whole question of a public inquiry. On 10 December Mr. Gordon Downey, the Comptroller and Auditor General wrote to me:"Details of other public investment in BL tractor production—for example, by way of regional development grants—are not available except at disproportionate cost.—[Official Report, 26 November 1981; Vol. 13, c. 446.]
I ask the Government for their opinion about the status of the Comptroller and Auditor General's inquiry. There are issues that this inquiry, and this inquiry alone, an objective inquiry, should be examining. I refer to an article in Auto Industry. I have given the Department notice that it should study the article, which is headed:"When you came to see me on 1 December I told you that I would consider what enquiries it would be appropriate for me to make regarding the sale of Leyland Vehicled Ltd's tractor assembly assets at Bathgate. Since then I have arranged for my staff who are concerned with Departmental arrangements for monitoring the performance of publicly-owned companies to make enquiries, in the first place, from records held by Departments. As you know, I normally have no right of access to the books and records of publicly-owned companies. While I note that Leyland Vehicles Ltd. have stated publicly their willingness to co-operate with 'any properly authorised enquiry into this sale', I have not yet established whether their cooperation would extend to opening their books and records to audit scrutiny by my staff."
I shall not quote the whole article, because some of it is very detailed. Some of it should be a matter of study, without being repeated out of context in the House. It refers to the fact that foreigners have made an entirely different judgment about the future of bus, truck and tractor markets. For example, it says:"Importers cock-a-hoop over closure plans".
Says this informed article in one of the trade journals:"The alternative is Cummings, whose new small diesels being developed primarily for the American Case Company will in Family One form be in exactly the right power and size. The important question remains: with its new target volumes how long can LVL continue to make engines?"
In the light of such a statement, surely some form of public inquiry should be conducted."Not long. The latest move proves once more that LVL is unable to develop a long-term strategy and stick to it. By contrast, there is no sign that Daimler-Benz overturns its decisions every two weeks."
I went on an all-party visit to a firm in England that made the categoric statement that it manufactured suitable engines, probably cheaper, yet it was ignored by British Leyland, when it could offer British-produced engines, with the consequence of providing work and wages for people in Britain.
I accept that point.
Other hon. Members wish to speak, and there are two debates to follow. It is my practice to refrain from naming names on the Floor, unless I am prepared to repeat those names outside, but the Department ought to look carefully at the names mentioned in this article in Auto Industry and, if it thinks fit, write to those of us who are concerned about their feelings regarding the statements that have been made. In the absence of a public inquiry, extra authority ought to he given to the inquiry being conducted by the Comptroller and Auditor General. I end by expressing the hope that the Leyland management, at least, will take no irrevocable decisions until such time as the Comptroller and Auditor General, in particular, and, preferably, the Government have conducted some kind of inquiry into those very complex problems. I thank right hon. and hon. Members who have been present and the Minister for their patience in giving me this hearing on a very complicated issue.7.11 am
I am grateful to the hon. Member for West Lothian (Mr. Dalyell) for raising this matter even though, through no fault of his or mine, it is at this time of the morning. I am also grateful to the right hon. Member for Lanarkshire, North (Mr. Smith) and the hon. Member for Midlothian (Mr. Eadie) for being present to listen to the debate. I am further grateful for the presence of my hon. Friend the Member for Renfrewshire, East (Mr. Stewart), the Under-Secretary of State for Scotland, who has a constituency interest in this matter.
It is, of course, legitimate for questions to be asked about a company like BL, which has to date received the staggering amount of £1,841 million of taxpayers' money. It is indeed important to ask why the company found itself in a position where it needed such amounts of public money to survive. The answers, I believe, are a salutary lesson for all those who work in or are concerned with the future of British industry in general. BL was first brought into public ownership at the end of 1975. This was not a time of recession in the car industry. Indeed, the level of demand was buoyant. However, for some years the industry had experienced a clear trend of increasing imports and a falling share by United Kingdom manufacturers. BL's share, in particular, had suffered from this import penetration. Put simply, the company had failed to maintain its competitiveness. It had retained capacity and manning levels far in excess of what its market position could justify; it had such a wide and varied range of models that it was difficult for any to be produced economically; its costs were increased by pay increases greater than it could afford; and its efficiency was hampered by restrictive working practices. In short, it had failed to move with the times. However, public money is never a cure, and it did not initially help. When BL was brought into public ownership, twice as many British-made cars were being sold as imported cars. Four years of Labour Government rule and £800 million later, imports exceeded the sale of United Kingdom produced cars and BL's share had fallen further. Clearly changes were needed: changes in model strategy to a more integrated range; changes in working practices and manning levels that would enable competitive standards of productivity and efficiency to be achieved; changes in the techniques of manufacture; and, above all, a reduction in the cost base to a level that could be sustained by demand for its products. This is the challenge to which the present board, under the chairmanship of Sir Michael Edwardes, addressed itself. Much progress has been made. New models have been introduced, investments have been made in new manufacturing technology, excess capacity has been cut and efficiency and productivity increased. This process of rationalisation has, of course, entailed painful decisions: the closure of plant and a reduction in the work force of some 33 per cent. over the last two years. However as a result competitiveness is being restored, with the company increasing its share of the United Kingdom's market over the last year for the first time since 1974. I said that there are lessons to be drawn from BL's experience. The lesson for industry is that it must continually be alive to change and new realities if it is to stay competitive. The lesson for Government is that trying to put off the day when painful decisions have to be made only exacerbates the hardship. The redundancies about which the hon. Gentleman spoke are a very regrettable but inevitable consequence of the failure to adapt in the past. I shall now comment on the hon. Member for West Lothian's letter to my noble Friend the Lord Advocate. Obviously, my noble Friend will want to consider the hon. Gentleman's letter and will reply fully to him when he has had a chance to do so. However, as a preliminary observation, I should say that the hon. Gentleman seems to draw a parallel between the GLC's relationship wall its ratepayers, and the relationship between the ratepayers of West Lothian district council and BL. However. that is not a fair parallel to draw, because the fiduciary relationship alleged by the hon. Gentleman exists between the GLC and its ratepayers because there is a statutory relationship between them. However, there is no such statutory relationship between BL and the ratepayers of West Lothian district council. That is a non-lawyer's preliminary view of the hon. Gentleman's letter. I should prefer not to be drawn further and I hope that the hon. Gentleman will await my noble Friend's expert and learned comments. I recognise the concern felt about BL's decisions as regards Bathgate, Lancashire and Wolverhampton and I wish to make clear the basis of the Government's attitude to BL's decisions. As the House is well aware, this and previous Governments have taken the view that BL must be left to act on a fully commercial basis. BL operates in the highly competitive world vehicle market. Its competitors can, and do, make their decisions affecting their efficiency and productivity on a commercial basis. I would not expect otherwise: nor, I am sure, would Labour Members. It would therefore be totally unrealistic for hon. Members to expect BL to improve its competitive position if all its commercial judgments were subject to being checked with the Government, or to approval by the Government. It would not only be a matter of time—or indeed of experience: the Government are not, and never have been, in the business of producing motor vehicles. Far more damaging would be the effect on the morale of those at BL—work force, managers, professional engineers. All would feel that they no longer had responsibility for their decisions. As a result, I firmly believe that BL would lose the will to improve its efficiency and its competitive position.I said that no one wanted the Government to breathe down BL's neck on day-to-day decisions, or even week-to-week decisions. However, is there not a difference between day-to-day decisions and what might be called "meddling", and strategic decisions, such as those to remove the tractor assembly line and to close Guy Motors, Wolverhampton, which affect whole communities? In addition, enormous sums of Government money have been invested. If the Government sustain such an argument, what on earth was Macmillan's Cabinet up to when it forced the then Austin-Morris and BMC to go to Bathgate in the first place?
The hon. Gentleman and I would agree that with the vast amount of taxpayers' money going into BL there are certain decisions that the company should correctly discuss with the Government and certain decisions that are left to it to deal with commercially. We have a working relationship with the company; it submits its corporate plan and major strategic matters are discussed. However, commercial decisions are left to the company to make on a commercial basis.
When the Under-Secretary replies to the question put by my hon. Friend the Member for West Lothian (Mr. Dalyell), I know that he refers to taxpayers' money in another sense. The Under-Secretary must agree that it is wider than that sphere. My hon. Friend's speech referred to the social capital invested in the area in the shape of houses, schools, roads and services. The Government also have a responsibility for them and, therefore, when one talks about investment in Bathgate, one needs to consider the enormous social capital in that area, which will certainly be grossly underutilised.
The point that my hon. Friend tried to make was that the Government could not stand back and stare when so much money, expenditure and social capital, in particular, was involved.I appreciate and share the hon. Gentleman's concern. The Government's view is that we want as large and effective a BL as we can possibly achieve. The Government have provided—as have previous Governments—substantial capital so that it can build a business. We have also sought to put into positions of authority the best chairman and board available, and we expect them to get on and make a profitable business. We consider that that is the way most likely to be able to protect the social fabric, jobs and social life of the people working for British Leyland.
There is no suggestion that we can ignore these matters in the equation; they are important parts of it. The Government's view is that a successful BL is the most effective way of producing the results we all want. Any company, in whatever field it operates, cannot afford to ignore market conditions. There is no reason why the Leyland Group should be excluded from the process of adjustment necessary to establish the United Kingdom as a competitive and efficient manufacturing base. Leyland's problems of overcapacity and lack of competitiveness have been exacerbated by the serious effect that the recession has had on truck sales, at home and abroad. The Leyland Group, therefore, has had to take action to reduce surplus assembly capacity and to concentrate production on a few major sites; to strive to manufacture efficiently so that it can compete on a free and fair basis. The process of adjustment is bound to be painful. I appreciate the effect that these latest redundancies in Leyland vehicles will have in the areas serving the affected plants. However, Leyland management has reached its decisions on the future shape of the company on the basis of realistic sales forecasts. The hon. Member for West Lothian referred to reports he received which said that BL was pursuing a commercial policy that was, in effect, harmful to its long-term interests—that was the substance of his remarks. To put it mildly, I should be surprised if that were so. If I were to attempt to deal with these matters in detail, I should have to go far beyond the area of Government. I should find myself encroaching on commercial confidentiality and I should not be tempted to do that.I am merely asking the Minister and his officials to consider the reports in "Flash" and in "Auto Industry", and possibly to write to me when they have considered them rather than taking up the time of the House by going into detail.
I undertake to do that.
The aim is to place the company in a position to weather the recession and to emerge with a complete new range of trucks and buses as good as anything produced by its many competitors. Only in this way can the many jobs that are still dependent on Leyland in Scotland, Lancashire and elsewhere be secure and have a chance of continuing to be secure. The decision to end the production of tractors at the Bathgate plant was taken by BL in the light of the current and anticipated demand for the product. The tractor facility is capable of producing up to 400 tractors a week, but demand dictated the production of only 60 or 70 tractors a week. Even if the welcome upturn of business, which I think was evident during my visit to the Smithfield show a week or so ago, is reflected in additional sales, we shall still be a long way from getting likely demand anywhere near the facilities at Bathgate. The hon. Gentleman will understand that a high cost base facility can be operated only if there is sufficient demand to fill capacity. The sale of the rights to the design, manufacture and sales of the range of Leyland tractors to Marshall, Sons and Company Ltd. of Gainsborough, Lincolnshire, will mean that production can be resumed within the United Kingdom on a cost base that is more suited to the demands of the market. I appreciate that the hon. Member for West Lothian is concerned about the effects of the Leyland decision on his constituency. However, I am sure that he will appreciate that BL is intending to concentrate manufacture of exports trucks at Bathgate. In transferring the T43 Landtrain truck there, Leyland Vehicles is showing its belief that there is a future for the Bathgate premises. The company has also said that Bathgate will be developing as Leyland's primary engine facility. That is further proof of its belief in the future of the plant. The hon. Gentleman has also raised the issue of Government support for Bathgate and what he considers to be the improper or unwise selling of assets financed by the taxpayer at knock-down prices. There is no evidence available to me that supports that view. The Government will expect BL to reinvest the proceeds of disposal in its business. As the hon. Gentleman rightly says, the bulk of the original investment in BL was in the form of equity capital and therefore not specifically allocated to any one particular investment programme. I can confirm to the hon. Gentleman that the normal rules will apply to any grants that may be repayable. When the details of disposal are settled, any refunds that are appropriate will be made. The details will not normally be made available because they are in the realms of confidentiality. I do not want to get myself into trouble, but there is a question that stands in the hon. Gentleman's name that will shortly be answered by me. I have seen the draft of the answer. I have tried to be as helpful as I can. If he is still not satisfied when he gets it and if he writes to me, I shall do my best to give him any information that is available. BL has already strongly denied suggestions hinting at irregularities in the transaction for the sale of the tractor business. It has stated that the terms of the transaction are at full commercial value. It has said that it will co-operate with any properly authorised inquiry into the terms of the sale. The Comptroller and Auditor General is already preparing a memorandum for the Public Accounts Committee. My right hon. Friend the Secretary of State for Industry stated on 7 December in the House that if the Comptroller and Auditor General, or any other House authority, wished to investigate the matter on the normal basis, the Department of Industry would co-operate fully. I repeated that statement in the Adjournment debate on 8 December. I am happy to repeat it now. My right hon. Friend the Secretary of State for Scotland has also shown his and his Department's willingness to co-operate. I gather that the Exchequer and Audit Department has been in contact with officials of both Departments. We must now allow the PAC to consider the comptroller's memorandum. I do not believe that the case for a wider inquiry has been made out.Would it, then, be reasonable to suggest that no irrevocable action will be taken by the Leyland management until the Comptroller and Auditor General has completed his inquiry?
It would not be right for the company to be asked to do things that it considers to be incorrect in the light of the evidence before it. The allegations have been made and BL has satisfied itself. It would not be right to ask BL to depart from the clear instructions that the Government have given—that it should act on a proper commercial basis.
I have nothing further to add to the question of Guy Motors other than what I said in the Adjournment debate last week. I appreciate that the hon. Member for Wolverhampton, North-East (Mrs. Short) cannot be here at such a time. As to Leyland in Lancashire, the complex of plants is the largest of the Leyland Vehicles operations and has benefited from investment of over £85 million recently. The new assembly hall has the capacity to produce up to 425 vehicles per week and the recently opened technical centre is equipped with some of the most advanced engine and noise test beds in the world. The company's parts distribution centre at Chorley has been computerised and expanded and can dispatch parts anywhere in the world at 24 hours' notice. Of course, the decision to end in-house production of two older engines, and the consequent redundancies, will have come as a severe blow, but I suggest that the hon. Gentleman and his constituents should look more at the points in favour of the Leyland site. The newly introduced TL11 engine will continue and, more importantly, BL has said that new model introductions and further truck derivatives will be concentrated at the Leyland assembly plant, which will now build the replacements for the Boxer truck range. BL has said that Leyland Trucks will continue to manufacture and sell a full range of commercial vehicles for the United Kingdom market, and a full range overseas. It has said that its proposals will recreate Leyland Vehicles as a viable company which—by any standards—is still large. We should be encouraging it in that aim. I certainly do. After six years of Government funding, it is fair to ask what are the prospects for BL. The Government believe that BL has a future—otherwise they would not have approved BL's corporate plan last year, and the associated request for £990 million more Government funding. The reasons why we approved that plan were explained in the statement made by my right hon. Friend the then Secretary of State for Industry on 26 January 1981. The plan contained BL's strategy for returning the company to viability in the medium term. There are various strands to the strategy. The first is a continuing programme of restructuring, where necessary, to ensure that the company's cost base is competitive for the markets that it serves. The second is investment in new projects to offer a modern, attractive and fuel-efficient product. The Metro and the Acclaim and the many well-received new trucks are the first fruits of the policy. Thirdly, BL sees collaboration as an important part of its strategy. BL is on the way to getting over a great many of its difficulties. A great deal more needs to be done, but I am sure that on both sides of the House we hope that it continues to make progress.Sea Wolf Project
7.35 am
It has been a long night and in the ordinary way the time is not seemly for debate, but that is the way we do things in the House.
I wish to raise the question of the Sea Wolf missile, which is a matter of great importance to my constituents and others in the Bristol area. First, I wish to give my view on the defence question generally, although I do not intend to enter into the non-nuclear and anti-nuclear controversy which occupies so much time and argument within my party. However, if we are genuine and realistic about making our practical contribution to NATO, in discussion with our allies we must fulfil the military, naval and air force tasks assigned to us according to our national capabilities, knowledge, experience and past history. Should that task be non-nuclear, so be it; if it be a mix of nuclear and non-nuclear, equally, so be it. What one country can do, another cannot, and what one should do, another does not necessarily have to do. Whichever way the defence of the United Kingdom evolves with NATO, the strength and efficiency of our conventional forces are fundamental. They are the common factors that join the nuclear and non-nuclear strategy. Sea Wolf is a lightweight ship defence missile system, and production of it affects both our working with our allies and employment. I do not believe that weapons should be made just to give employment. Allowing for export sales, we should make just as many as our defence requires—no more and no less. The trade unions representing the workers in the defence industries take a practical, robust and commonsense view, knowing as they do that we live in an imperfect and dangerous world. The representatives of the trade unions at Filton have seen me and other hon. Members. The dynamics group joint unions co-ordinating committee has asked me to raise the matter. They are all TUC-affiliated unions. They asked me whether I could find an opportunity to raise this matter in the House and that is why I am speaking at this hour of the morning about the future development of Sea Wolf. The Sea Wolf is an established weapons system—as I understand it, no particularly new technology is involved—that has had successful and extensive testing by the Royal Navy. It is now installed—perhaps on an experimental basis—in type 22 frigates. It is also suitable for installation in other types of ships, as a weapon to defend them against attacks from the air and from surface warships and submarines. I am sure that the Minister will bear me out in that. It is said to be unique as a weapon, and it is certainly one of the best in its class available in the world. About four years ago the Ministry of Defence decided to attempt an improvement of the system by, among other things, installing a dual frequency radio tracker. Talks were held with Marconi, which gives service to the Royal Navy in many respects. It appears that Marconi was not very interested, and it has been said, somewhat unkindly by its rivals, that it had become so used to Government subsidy that it had got out of the habit of risking its own cash. So, British Aerospace went ahead on a joint venture with the Dutch electronics company Hollandse Signaal Apparaten. It now appears that the Government are reconsidering the Marconi option. I understand from the industry and from the trade unionists at Filton that they are looking again at the system known as SD805/SW because it is argued that that would provide about 250 extra jobs in the United Kingdom. There seems to be some argument about how many extra jobs would be provided. Some knowledgeable people feel that that figure is a Marconi exaggeration. That apart, the present established joint system of British Aerospace and Signaal is already well ahead and I believe that to switch to the Marconi system would probably involve some years of delay. Also—this is a point that is strongly stressed by my informants on the employment issue—the British Aerospace-Signaal VM40 system has a considerable export potential. It is doubtful whether the Marconi system has such an export potential. It is argued that it could generate—provided that we are successful in overseas sales, presumably to NATO buyers and to friendly Powers in other parts of the world—up to 800 jobs in the United Kingdom, with good publicity. This employment prospect would represent a United Kingdom income of about £750 million, with the rest of the profit going, presumably, to the Dutch company. I am glad to see that the hon. Member for Bristol, North-West (Mr. Colvin) is here. I believe that he hopes to catch your eye, Mr. Speaker. Therefore, I shall simply say, that it is my view, and the view of those with whom I have been in touch, that British Aerospace, in collaboration with its Dutch partners, can offer the Royal Navy an already proven system. It can do this at agreed fixed prices, agreed delivery dates, with appropriate penalty clauses built in, and with a warranty covering the first year's service. I am impatient to know the Ministry's view of the matter, which I am sure that the Under-Secretary will give us shortly. I am keen to know the Government's intention. There is great interest in the matter among employees and all those directly or indirectly dependent on activity at Filton.7.47 am
I welcome this opportunity to debate the subject of the Sea Wolf missile under the Vote in the Supply Estimates that relates to defence procurement. I congratulate my constituency neighbour, the hon. Member for Bristol, North-East (Mr. Palmer), on raising the issue. For a Conservative Member to say that he agrees with everything said by a Labour Member is usually the political kiss of death, but in this case I think the issue that we are debating transcends party politics, and I have no hesitation in endorsing everything he has said, particularly what he has said as to the need to maintain and improve our conventional weapon systems.
The purpose of the debate is to persuade hon. Members that in the contest for a lightweight radar tracking system to upgrade the Sea Wolf missile the proposal put forward jointly by British Aerospace and the Dutch firm, Hollandse Signaal Apparaten, known as the VM40, is preferable in terms of performance, cost, availability, sales potential, job protection and job creation, to the rival system proposed by Marconi Radar Systems Limited, which is known as the ST805/SW, to which I shall refer as the 805/SW for short. I do not want to give the impression that I am taking a narrow Bristolian stance on the Sea Wolf issue, although I accept that the debate is in part certainly one about jobs. But they are not just Bristol jobs; it is about jobs for Britain, and that includes Chelmsford, where the Marconi Radar Systems factory is situated. It is a debate about jobs in one of our key industries, aerospace—an industry which, once again, will break its export record of over £1,775 million last year by achieving close on £2,750 million in 1981. But it is, of course, also an industry which is dependent on defence sales for about three quarters of its business. It is an industry which, in the interests of peace, must be one step ahead of our potential enemies, and it is therefore constantly pushing forward the frontiers of high technology. In short, it is an industry that must be encouraged and backed with taxpayers' money. Perhaps I should explain that the Sea Wolf is an advanced ship-borne anti-missile missile, and the only one of its type in operational use. It has a proven performance, to which the hon. Member for Bristol, North-.East has referred. To give some idea of its capability, it can intercept a missile coming towards it at close range and it can also intercept a 4·5 in naval shell. Over 100 live firings have been successfully completed, and it is in service on our own type 22 frigates. Four years ago it was decided to improve the system, not only to make it more versatile and effective but also to improve its sales potential in overseas markets. That is very much in accord with what the Prime Minister said in 1980, when addressing our aerospace manufacturers at the time of the Farnborough international air show, when she stressed the importance of designing our aerospace products with international sales very much in mind, and not to tailor-make defence hardware so specifically for our Armed Forces that later on we found that no one overseas wanted to buy it. The Sea Wolf has great overseas sales potential provided that we use the VM40 tracker radar in its upgrading development. But, first, a British product needs the so-called stamp of approval by being bought for our own defence. Here I understand that the improved Sea Wolf is needed for the Royal Navy type 22 frigates and our batch 3 Leander frigates improvement programmes due to begin in 1984. I am assured that the Sea Wolf VM40 is the only equipment available that is capable of meeting the NATO conditions of time scale, fixed price, delivery and performance. If the Ministry of Defence accepts Sea Wolf VM40 for the Royal Navy, because of its Signaal content, I think that it would be true to say that the Netherlands navy would also view the system with considerable favour. It will not guarantee a sale to the Dutch, but it certainly improves its saleability. I think that it could be true to say that the reverse would be the case if the Marconi 805 SW system were the one chosen. The Dutch company, Hollandse Signaal Apparaten, already enjoys a considerable market in the Western world for its radar Systems, since no fewer than 37 navies use its equipment. This also can help open the door to sales of Sea Wolf eventually if the VM40 radar is incorporated. If one compares that sales potential with Marconi's, which has its equipment in service with only six navies, one can see that the British Aerospace-Dutch joint effort has considerably greater sales potential. The hon. Member for Bristol, North-East has referred to sales of £1,000 million-plus—£750 million worth of which would come to this country. Of course, one must take into account the offset arrangements, about which we have often spoken in this country, which would be part of the reciprocal business done from overseas. Also, I think that we must bear in mind that the Sea Wolf VM40 trials have demonstrated that the maintenance period is 900 hours for that product as opposed to a normal 300 hours for this type of weapon. I appreciate the reply from my hon. Friend the Under-Secretary to my letter to him dated 23 November on the question of Sea Wolf. He rightly drew attention to the complex interacting factors involved in making a choice, and I fully understand that for reasons of security and commercial confidentiality he could not reply in great detail. One of these factors is, of course, the amount of money already invested in the two rival Systems. In the VM40 development programme, we know that £4·5 million has been invested by British Aerospace and that this is backed up by another £4·5 million from the Ministry of Defence. Perhaps my hon. Friend could tell us when he replies how much money has gone into the Marconi 805/SW development programme and how much of this is Government money. I note that my hon. Friend has also said that both the VM40 and the 805/SW Systems can meet the Royal Navy delivery date. Could he tell us when that is? The Canadian Navy could require earlier delivery than our own Navy and I believe that only with the VM40 system installed could that delivery of two years from now be met. That is quite important because it may be the Canadian Navy, rather than the Royal Navy, which eventually triggers off sales to other NATO countries. As far as jobs are concerned, I can confirm that British Aerospace has borne its fair share of belt tightening, which has made it even more highly competitive. The civil side of the business is always risky and is currently uncertain because of the severe recession in civil aviation. That is why this opportunity to create new long-term secure jobs in the dynamics group is so welcome. I am well aware of the anxiety expressed by Marconi workers about job losses if British Aerospace gets the contract, but in the long run there will be more jobs for Marconi if the VM40 system is chosen. Marconi has suggested that it might lose 250 jobs if the British Aerospace system is chosen, but a feasibility study carried out by Bristol Project Management shows that, even based on a programme to fly six missiles and against an estimated budget, the maximum number of engineers employed would be only 60. Even if that number were doubled, it would still only be 120, and it is still very difficult to justify 250 jobs apparently being lost by Marconi. It is also important to consider that the Dutch company, Signaal, has said that it will offer Marconi 65 per cent. of the VM40 tracker work on a sub-contractual basis if it goes into production, so there will be jobs coming back to Marconi that it should take into account. It should view this matter on a much longer-term basis than at present and take the net job effect into account. On cost, the Ministry of Defence has been offered an extremely attractive package for the VM40 system that includes a fixed and firm price. We must also bear in mind the Government's levy on defence sales which, because of the better overseas sales potential of the VM40, possibly to 37 navies, could give a greater return to the taxpayer if that system were chosen. The key to a successful defence product is its improvability. In the Sea Wolf 1, which is in service now, we have a uniquely successful production of great potential. We have been debating today, at this early hour, the Sea Wolf 2, incorporating, I hope, the VM40 lightweight radar tracker and ready for service within two years. British Aerospace is already at work on Sea Wolves 3, 4, 5 and 6, which respectively incorporate a lightweight launcher, vertical launch, infra-red autonomous homing and 3-D radar surveillance. Incidentally, I believe that the last of these—the SW6, incorporating the 3-D radar—is probably the development that Marconi could more fruitfully concentrate on rather than the SW2 that we are discussing this morning. I pay tribute to all at British Aerospace dynamics group at Filton, under the leadership of their director Mr. Don Rowley, with whom I have discussed the subject. I also thank the British Aerospace dynamics group joint unions co-ordinating committee, mentioned by the hon. Member for Bristol, North-East, which regularly meets Conservative Members to discuss aerospace matters. Its secretary, Mr. M. Jakes, has produced an excellent document putting the unions' case for Sea Wolf VM40. I can do better than conclude by quoting the document's summary of the VM40's advantages in six short sentences:We urgently need a decision on Sea Wolf and I hope that we have persuaded my hon. Friend the Under-Secretary that it should be in favour of the VM40 system. Only by incorporating the VM40 can the full potential of Sea Wolf be realised. By deciding in its favour, the Ministry of Defence will not only secure the jobs of today, but will create many jobs for tomorrow in one of our most vital and successful industries."Fixed and Firm Price, with excellent warranty. Enhanced Employment Prospects for United Kingdom. High Export Potential. Versatile and light enough to be integrated into smaller ships and prime merchant targets. Sufficiently advanced to adapt to the changing threat. Investment in Technology for the future."
8.1 am
I am glad to have the opportunity to reply to the debate so ably initiated by the hon. Member for Bristol, North-East (Mr. Palmer), supported by my hon. Friend the Member for Bristol, North-West (Mr. Colvin). They will not expect me to make a dramatic announcement, and in case they are under such a misapprehension I make it clear straightaway that no decision has yet been taken and all that I can do at this stage, having heard the arguments well rehearsed, is to go over the ground in similar fashion.
It will be no surprise to the hon. Members to learn that there has been considerable lobbying at all levels by both sides. The arguments are extremely finely balanced. It could be an attractive prospect for advocates picking up the case on either side. Each would believe that only his side's solution was the right answer. I assure both hon. Members that, although we are familiar with the arguments, we are conscious of all the points that have been raised—the sales possibilities, the employment considerations, the potential, the "stretchability", to which my hon. Friend referred, and the rest. They are all part of the equation and are being considered. The requirement for an improved Sea Wolf system is accepted—in particular the need to respond in future to the anticipated threat to our surface ships that will be posed by low-flying missiles employing electronic countermeasures as the means by which to penetrate ship defences. As the hon. Member for Bristol, North-East has pointed out, there are essentially two competing solutions to the requirement for a new tracking radar to enhance the capability of the Sea Wolf system in those vital areas. One is based on a proposal put forward by the dynamics group of British Aerospace, which designed the Sea Wolf system and its missiles, using the VM40 tracker developed by Hollandse Signaal Apparaten of Holland. The other is a proposal by Marconi Radar Systems Ltd. which supply the radar currently used in the Sea Wolf system that would use a tracker from the firm's 800 series of radars, the 805/SW. Both of these radar Systems will also offer advantages in respect of improved reliability and reduced weight thus making it possible to fit them in a wider range of ships and thereby widening their export prospects. I realise that there are other debates to follow. It may be as well if I go over some of the history. It has been claimed that Marconi is a "Johnny-come-lately" to the scene and that British Aerospace has been investing money over the years. It is misleading to suggest that the 805/SW threatens to overturn a long-standing Ministry of Defence commitment to the British Aerospace project or, as suggested in some circles, that the Ministry has misled British Aerospace. Marconi was for four years under Ministry contract to develop the DN181 Rapier radar as a low angle tracking improvement—a mini-metric addition for Sea Wolf. In parallel, from 1978 onwards, British Aerospace's HSA tracker was developed as a private venture with overseas sales in mind. This work included a demonstrator programme for VM40 to which the Ministry of Defence contributed £4·5 million, although it was made clear that there was not yet any firm Royal Navy requirement for a lightweight tracker or any commitment on the part of the Ministry of Defence to continue beyond the demonstrator programme. That was made clear to British Aerospace at the time. Following a review in the summer of 1980 of progress and continuing cost-effectiveness of DN181, it was decided to consider VM40 as a possible alternative and British Aerospace was accordingly invited to prepare a development cost plan on VM40 at its own expense. It was again made clear to BAe at this stage that there was no commitment on the part of the Ministry of Defence to proceed with VM40 DN181 was finally cancelled in July 1981 when it became clear that development was not proceeding satisfactorily. When Marconi realised that DN181 was likely to be cancelled it came forward in April 1981 with its own lightweight alternative to VM40. It was assured when the DN181 development contract was cancelled that its 805/SW would be fully and fairly compared with VM40 when the time for a decision on the choice of lightweight trackers arose. That programme builds on the experience of Marconi's work on DN181 and GWS25 and incorporates the Ferranti FM1600E computer being introduced into service in the type 22s. I have given that history because it is important to get the record straight. If anything, the matter is only harder to resolve. In attempting to evaluate and compare these competing Systems, a number of important and interlinked factors have to be taken into account. I assure the House that it is a complex matter to weigh up all of them to determine where the balance of advantage lies between the British Aerospace System and Marconi alternatives. There is a fundamental need to establish how each system will measure up to the naval staff requirement in terms not only of their intended performance but their availability, reliability and serviceability. The cost of the alternatives must be closely examined to determine the best value for the Ministry's money taking into account not just the costs of development and production but those of in-service operation and support. In order to reach conclusions on these difficult and complex matters, it is necessary first to judge the practicability of the proposals that the competing firms put forward. For example, it is necessary to determine the degree of technical risk and uncertainty contained in them in order to estimate the likelihood, or otherwise of cost and/or time over-runs on the project. Another aspect of the Ministry's technical evaluation of the Systems is the degree of stretch potential of each so that a view may be taken of the long-term operational and financial consequences for the fleet. There are other strictly defence-related considerations such as manpower costs and ship-fitting time scales that have a bearing on the decision. I do not propose to refer to them in further detail now. However, I hope that what I have said shows the enormous thoroughness with which we are examining the matter.The House appreciates the difficulties involved in the decisions that have to be made, but can the Under-Secretary give us an estimate of the time that is involved? A decision will have to be reached sooner or later. Will it be sooner or later?
I propose to conclude my remarks by saying when the decision may be expected. That is as firm as I can be at present.
No less important than the considerations that I have outlined is the attention that is being given to the industrial and employment consequences of the decision to be taken on the tracking radar. I fully recognise the significance which the hon. Gentleman, my hon. Friend the Member for Bristol, North-West and hon. Members who are not present attach to these aspects. The views expressed to me by the supporters of the competing Systems are divided, not so much on party lines as on constituency lines. There is nothing unrespectable about that.
My hon. Friend is surely aware that we are doing our best to help Chelmsford, where there are more jobs for Marconi in adapting the VM40 project than in going ahead with the Marconi project.
I am sure that my hon. Friend's remarks will be read carefully by the people in Chelmsford. It is for them to comment on the matter. However, it is fair to say that they do not see it entirely in that light.
Having said that we attach great importance to the effect of the decision on firms and jobs, I do not pretend for a moment that it is possible to quantify with any certainty the exact overall impact of the Government's final choice. We can estimate the value and work content of the programme for the individual companies concerned. Naturally, we listen carefully to each firm's view, and it will surprise no one to hear that there is some divergence of opinion between them as to the likely significance of their winning or losing the work. The Ministry of Defence must endeavour to reach a balanced and realistic assessment of the position. It is not possible to examine in isolation the Royal Navy's requirement for a new tracking radar for Sea Wolf, when attempting to gauge the industrial and employment implications of the choice of system. It is necessary to consider the scope for winning orders from overseas from each of the competing radars, both when incorporated in the overall Sea Wolf missile system, and when sold separately for incorporation into other missile Systems. Here again, as one might expect, there tends to be some disparity between the claims of the protagonists of each of the competing Systems, and it falls to the Ministry of Defence to examine the claims and reach a balanced overall judgment. The resolution of all these issues is bound to take time. So I do not accept the criticism that the choice of lightweight tracking radar for Sea Wolf is taking too long. No effort is being spared to push the matter forward. Ministers are keeping closely involved in the decision process. As an example of the close ministerial involvement, I remind the hon. Member for Bristol, North-East of the representations that my colleague Lord Trenchard and I have received from the managements and trade unions of the competing firms, who have lobbied very hard on behalf of their proposals. The hon. Member for Bristol, North-East asked when we can expect the decision. I see that a written question on the subject has been tabled by my hon. Friend the Member for Welwyn and Hatfield (Mr. Murphy). All that I can say now is that we earnestly hope to reach a decision and make an announcement as soon as possible in the new year.Nurses (Pay)
8.14 am
I welcome the opportunity to speak on the question of nurses' pay. I cannot believe that there is another single group of workers in the public sector who arouse more sympathy, both in the public mind and in the House. It is fair to say, however, that nurses cannot live on sympathy alone. They are disenchanted with their pay settlements. They believe, with some justification, that only groups who exercise the most pressure, make the most noise, strike the most or threaten to strike the most are the ones who get the most in pay rounds. They believe that it lowers the standing of their profession and is a very sad state of affairs that every couple of years they have to rattle their begging bowls and make noises to the Government of the day to draw attention to the fact that yet again they have slipped behind in the pay league.
This is not new at all. It has happened on many occasions. In 1974, nurses' and midwives' pay was referred by Barbara Castle, then Secretary of State for Social Services, to a committee under the chairmanship of Lord Halsbury, which reported in September 1974. The committee came to the conclusion:The committee also agreed that simply remedying the decline was not enough. Its report went on:"We are in no doubt that the pay of nurses and midwives has fallen behind other occupations and professions which, four years ago, were at broadly similar income levels and it is important that this should be remedied."
Lord Halsbury's recommendations were accepted by the Government of the day, and there were substantial increases averaging 30 per cent. in the pay of nurses and midwives. However, as a result of the operation of pay policy, nurses once again slipped down the pay scale. In April 1978, the staff side made a claim for a special award outside the 10 per cent. limit then operating under the pay policy to compensate them for this slippage. The Government would not agree to such an award. But the subject came up again in the following year, and in April 1979 nurses settled for 9 per cent., which had become about the going rate in public sector pay increases at that time—it was payable from 1 April—and there was a reference of their pay claim to Professor Clegg's standing commission on pay comparability. His report on nurses and midwives was published in January 1980 as the third report of the commission, and it recommended increases averaging 19·6 per cent. in addition to the 9 per cent. already paid, but ranging from 0 per cent. for regional and area nursing officers to 25 per cent. for ward sisters. It is fair to say that the nurses felt rather disappointed with the Clegg report. They were one of the few members of the public sector who I felt were not dealt with particularly generously by Professor Clegg. The Clegg awards were the completion of the 1979 pay award. For 1980–81, the Government set aside £116 million to finance the reduction of the working week from 40 to 37½ hours, and that was a most welcome change for nurses and was the equivalent of a 6½ per cent. pay rise. The 1980 pay settlement was held to 14 per cent. in addition to this by National Health Service cash limits and, after lengthy negotiations, agreement was reached within the cash limit in July 1980. All nurses got 13 per cent., with an extra 1 per cent. being distributed among the senior nurses who had done so badly out of the Clegg awards. It meant that, over two years, the amount made available for increases in nurses' pay was 61 per cent., but this included money for financing the shorter working week, and it was 50·4 per cent. without that. At the end of February 1981, nurses' leaders jointly put in a claim for an increase of 15 per cent. from 1 April, which was their estimate of the increase in inflation over the year from April 1980. The management side on the Whitley Council stuck to the 6 per cent. cash limit, and a deadlock resulted. On 10 June, the staff side met the Secretary of State for Social Services in the hope of persuading him to increase the cash limit. It was unsuccessful. The chairman of the Whitley Council staff side, David Williams, was quoted as saying:"Although there is no doubt that the relative decline in nurses' earnings over recent years has contributed to the change of balance in the numbers of qualified and unqualified staff, we do not consider that the restoration of the relative position that existed in April 1970 would be sufficient in itself to overcome the manpower shortage, let alone to meet the future need for additional staff. In short, we consider that a relative improvement in the position of nursing pay in the national pay hierarchy is required."
The leaders of the various unions involved then consulted their members on whether they should settle within the 6 per cent. limit. Members of the National Union of Public Employees, the Confederation of Health Service Employees and the National and Local Government Officers Association voted against the offer, but at a Whitley Council meeting on 14 July the majority of the staff side voted reluctantly to accept it. Now the nurses, under their leader, Catherine Hall, are seeking recognition of their cause, through a further pay increase. The essence of their case can best be put in the words of Catherine Hall when she spoke at the Royal College of Nursing annual general meeting:"Mr. Jenkins made it absolutely clear there was no more money being made available for nurses."
"This is a pay campaign which should not be: but it has to be because nurses have lost confidence in vague promises of better things to come—in the future. They have had too many—and have had their hopes and expectations dashed too often. Statements made recently by Ministers that nurses could not expect more than four per cent. in the next pay round was the last straw.
Four per cent. on the basic £85 per week paid to the registered nurse after at least three years training is £3·40p—that won't do much for the family budget!
The vast majority of nurses are low paid by any standards. Over the past 20 years they have only got a decent increase on about four occasions—and that after pay campaigns launched by the Rcn. Then they became the forgotten race again—they slip year by year until they are once more at the bottom of th pay league of any comparable occupation or profession.
We thought we were going to get special treatment from the last Government in 1978—but we didn't. We had hopes when this Government came in because they had talked about nurses being a special case. We had the Clegg award in 1979—but so did other comparable groups and as far as nurses were concerned it did not even get us back to the position in the pay league which we had achieved in 1974.
The latest pay campaign is thus taking place only two years after the standing commission on pay comparability recommended an overall pay increase of 19·6 per cent. for nurses and midwives. The Royal College of Nursing welcomed the commitment of our party when in opposition that if elected we would honour the commission's findings if they were seen as a recognition that the pay of nurses was too low. It is a tribute to the Government that we have done as much as we have to date since coming to office. The nurses' pay bill has risen by about 54 per cent. However, surely this increase has failed not only to maintain nurses' pay at a level comparable with that of other comparable occupation groups but to safeguard the real value of those increases. The relative decline in nurses' pay since the standing commission's recommendations were implemented illustrates yet again the pattern that has bedevilled nurses' pay over the years. Major reviews in 1970, 1974 and 1979 have been instituted to drag up levels of pay following a relative decline in the intervening years and following a major pay campaign. Sadly, the current campaign, now called the "Bridge that gap campaign", is the latest in a series that the Royal College of Nursing has had to launch. The members of the Royal College of Nursing have repeatedly committed themselves to a policy against any form of industrial action. They do not believe that they have been treated up to their expectations over pay, particularly as my right hon. Friend the Prime Minister, when in opposition, referring to vital services such as hospitals, stated publicly in January 1979:The Minister of Health has offered talks on what can be done to improve the position of nurses but talks are no good unless the money is going to be there, and now the four per cent. guillotine is hanging over our heads."
I hope that such an effort is bearing fruit now, when discussions are going on between the nurses and my' right hon. Friends the Secretary of State for Social Services and the Prime Minister. I believe that I should quote two examples. The first is at the lower end of the nursing structure and the other is near the top. The basic grade is that of staff nurse, whose basic minimum salary in 1976 was £46·80 a week. In recent years this grade has received one of the largest percentage increases. Even so, the basic minimum salary is only £85·60—after three years' training for a statutory qualification. This rate compares very unfavourably with the starting salary of a policeman—£107·90—and a fireman—£109–49—neither of whom has undertaken such a long period of training. These figures show that the catching up exercise undertaken by the standing commission on pay comparability failed to raise pay levels sufficiently and that the recommendations have no lasting effect. Nearer the top, district nursing officers particularly have suffered when compared with the salaries of other members of the team of equals. In 1979, the Speakman review of top posts in the National Health Service recommended for district nursing officers a salary no less than that of their colleagues in the district management team of equals. In the same year the nurses and midwives Whitley Council achieved for district nursing officers salary parity with the district finance officer, but the linkage was maintained for only five months. The minimum salary of the district finance officer is now 18 per cent. above that of the district nursing officer. The purpose of the current campaign is to highlight the absolute and comparitive low level of nurses' pay to ensure that, in the short-term, the gap grows no wider and that, in the longer term, a mechanism is developed to set and maintain nurses' pay at an acceptable and equitable level. Recent developments—notably the meeting between my right hon. Friend the Secretary of State for Social Services and the staff side of the nurses and midwives Whitley Council, and the meeting last Friday with my right hon. Friend the Prime Minister—have, I am sure, given hope that some mechanism will be instituted at the earliest possible date. However, it is essential that, in the interim, nurses' pay should not be allowed to decline further compared with other groups. I end with a tribute to Catherine Hall, the general secretary of the Royal College of Nursing. It is ironic that, yet again, at the end of her career as general secretary, she has had to spearhead a further pay campaign. Her outstanding leadership of the profession is well recognised and her work to promote the science and art of nursing and the provision of the highest standards of nursing care will be a lasting tribute to her. She has been a protagonist for nursing in all its spheres, but her concern for the welfare and well-being of those who are the providers of nursing care has been equally important to her, and, during the past 24 years, she has battled hard to achieve economic justice for nurses. It can only stand as an indictment of previous Governments that she has continually had to undertake these battles. I hope that, at the end of her career, Catherine Hall will be able to show her nursing supporters and those for whom she has worked so hard during the years that, at the last ditch so to speak, a Conservative Government, recognising the special role of nurses in our society, their dedication to patients and their excellent record of hard work and service to the community, have instituted some form of pay policy under which nurses are fairly paid without their resorting to taking their pay claims into the public arena. The nurses would welcome my hon. Friend's assurance that their pay claims are being carefully considered."We must try to negotiate a no-strike agreement with those who operate these services in return for firm guarantees for pay now and in the future. Clearly, there are problems to overcome, but they need not prove insurmountable, and the next Conservative Government will make a very determined effort in this area."
8.28 am
I congratulate my hon. Friend the Member for Abingdon (Mr. Benyon) on bringing this matter before the House and on setting out so clearly the history of nurses' pay and the difficulties that have arisen from time to time. This is an important issue on which feelings are understandably strong.
We cannot look after sick people without nurses, so in that respect they are very special. Without nurses, there is no National Health Service. As my hon. Friend reminded us, the colleges of nursing and midwifery have undertaken not to strike—we admire them for that. But we must not take them for granted. They have every right to a reasonable salary for the skilled and devoted—some-times dangerous—work that they do. My hon. Friend's various questions are relevant to this point. Are nurses paid enough for the work that they do? Is enough money paid to clinical nurses? Is enough money spent on student nurses and on newly trained nurses? Are they part of an emergency service or a special service, as my hon. Friend suggested? Should nurses be paid, for example, in the same way as teachers and policemen? What are the Government doing? The Government give high priority to nurses and to finding a more satisfactory arrangement for maintaining nurses' pay. There has never been a satisfactory basis for settling what is fair for this group. However, it is wrong that there should have to be an inquiry every few years, such as the Halsbury inquiry in 1974 and the Clegg commission in 1979. For a short time after the inquiries the situation improves, but it gradually deteriorates again. The Government and I believe that that state of affairs has gone on for far too long and it is vital to find a better way of sorting out the nurses' pay system. Under this Government the National Health Service generally has been safeguarded financially. Spending for the NHS as a whole has increased considerably and, indeed, has increased by 5 per cent. in real terms since 1978–79. As my right hon. and learned Friend the Chancellor of the Exchequer announced on 2 December, the Government plan to continue that increase in growth by a further growth of 1·7 per cent. in health authority spending in 1982–83. Even The Guardian cited figures from the Office of Health Economics on 18 December and said:Those are not my words, but those of The Guardian. Nurses have had a share in the increased resources available. The amount of money spent on nurses has been increased by £1,100 million in just over two years—a lot of money by any standard. The amount of money spent on nurses' salaries has been increased from £1,400 million early in 1979 to £2,500 million in 1981. The trouble is that we inherited very low levels of pay particularly for some groups of nurses. In addition, just as the total amount of money has increased, we have increased—over the past two years—the number of trained nurses by about 2,000 whole-time equivalents. The figure for the number of extra persons is higher than that if all the part-time posts are included. That is only right, and has led to an improvement in the service to patients. Just as the money has increased enormously, so has the number of nurses who share it. I am talking about huge sums of money and some 400,000 nurses are involved. I remind my hon. Friend that a 1 per cent. increase in nurses' pay amounts to £26 million. In addition, we reduced the number of hours from 40 to 37½, and that has had to be paid for. The sad fact is that many nurses may still see problems in making ends meet, paying for their accommodation, and, if they work in the community, in running the car that is essential to their work. That is where their claim to be special comes in. They are special, but they are not school teachers, firemen or policemen, but nurses. In our view, they deserve to be paid as nurses and at a level appropriate to their skills and training. Last year at the Harrogate conference I suggested that the nurses could have another independent inquiry if they wanted it. I think that they were wise not to request that. As an alternative, I suggested that they could have discussions with the Government on two related aspects: first, on how to arrange their pay so that that did not keep falling back; secondly, on a real consideration of their career structure, particularly for those in clinical nursing. I am glad to tell the House that both those sets of discussions are proceeding. In August last year I wrote on behalf of the Secretary of State to the staff and management sides of the Whitley Council. The management side replied quickly. For reasons that I fully understand, the staff side did not reply until August this year. I then saw each side separately. It seemed right at that stage to tell them that the Megaw committee—which was set up recently to consider similar problems in Civil Service pay—might have ideas relevant to nurses. I am afraid that that was taken as meaning that no talks could continue or be completed until that committee had reported in the following year. That was not the intention, but, as a result, the profession asked to see the Prime Minister. However, before doing that, it saw my right hon. Friend the Secretary of State. A most constructive talk occurred and was followed by an equally constructive discussion last Friday with the Prime Minister. It was agreed that talks with both sides of the Whitley Council should continue soon after Christmas with the Secretary of State to identify possible approaches likely to be acceptable to all concerned. At the same time, I met representatives from the General Nursing Council and the professions to discuss the career structure and to consider the various aspects of the teaching of nursing, for example, the possibilities of improving the ratio of teachers to pupils which is presently 1:23 but should, in the profession's view, be 1:15. In addition, there are such matters as considering whether more teaching can be given in the wards, whether the ward staff should be more involved in that, the possibilities for greater staff training on the wards and various forms of accreditation. A working group is now considering those aspects and will soon be reporting and discussing them with me. The talks have far-reaching implications for the entire profession. Things are moving and, since we came into office, we have already achieved much of benefit for the nursing professions. We can also say that we accept that problems do remain, but we are determined within what is possible to try to find a better way to settle salaries in the future. We have shown that by taking the initiative in asking the nurses' and midwives' Whitley Council to discuss a new mechanism for settling pay in future and for keeping it at a reasonable level. I hope that the nursing professions will recognise in all that that we value their services very highly and that we set a high priority on making progress towards finding a more satisfactory arrangement for their pay."Health spending has risen under the Conservatives faster than at any other time since the creation of the welfare state in 1948."
Secretary Of State For The Environment
8.38 am
Even at this late stage in the debate, I am grateful for the opportunity to raise the relationship between the Secretary of State for the Environment and local government.
Perhaps the most valuable asset that Britain has is its democratic processes. One of the saddest indictments of the Government is the way that they have allowed the democratic processes to he slowly chipped away; letting more and more power slip away to the EEC, and their enthusiasm for hiving off industry and making it less and less accountable to the public and democratic process. I draw attention to the steady and sustained attack that the Secretary of State has made on local government. If ' democracy is to mean anything—if it is to be worthwhile—one must give the individual the opportunity to participate and to influence as many of the decisions that affect him as possible. If this is to have any real meaning, decisions must be taken at as local a level as possible, a level at which the individual can easily be involved. Local government is vital; and, if our democracy is to thrive, local government must thrive. I regret the way in which the old boroughs and cities were dismantled in the 1974 local government reorganisation, but I accept that it has taken place. The Secretary of State was then performing an earlier ministerial function and he had a great deal of enthusiasm for local democracy. He argued that local government reorganisation would bring about a rebirth of local democracy. Since May 1979 the right hon. Gentleman has systematically attacked local councils and their decision-making process. First, the right hon. Gentleman has tried to brand local councils as profligate spenders and wasters. Even yesterday, when announcing the rate support grant, he accused them of being overmanned and spending far too much on staff. The right hon. Gentleman is never specific. He is always vague and he always generalises. He fosters and encourages the myth that councils waste vast sums. It is easy to pick a few examples of mismanagment in local government, but to claim that that is a basic characteristic of local government is a gross slander. It is made worse because the right hon. Gentleman claims repeatedly that it is easy to make economies, but he is never willing to be specific. If it is so easy to make economies, why does the right hon. Gentleman not visit a local authority and after a week's visit tell it "This is where you can cut. Do this and do that"? He never does that because he knows that if he were specific it would become increasingly clear that there are no areas of waste and that he is talking about cutting basic services rather than cutting out waste. The right hon. Gentleman has not identified waste because he knows that it is impossible to do so. It is extremely dishonest of the Government to talk about waste, to create a myth about wages in local government and yet never to offer specific remedies. The right hon. Gentleman knows that he will explode his own myth. The second way in which the right hon. Gentleman has systematically attacked local government is by undermining confidence in the rating system. The Secretary of State has done this by the confusing number of arbitrary changes in the way in which local government has been supported. He has confused and muddled the electorate so that it has little idea whether a rate increase is the result of the local council's policy or whether it has been brought about because of a policy imposed on it by the Secretary of State. It would not be too bad to devalue and debase the whole concept of rating if the Secretary of State really had an alternative to the rating system. However, time and time again, when challenged, the Secretary of State cannot put forward a viable alternative. The Green Paper sets out all the alternatives. The right hon. Gentleman must admit that there are almost as many disadvantages to all the alternatives to rating as there are to rating itself. However, he continues to attack the rating system. The right hon. Gentleman must come up with a clear, specific alternative and nail his colours to the mast. He must say "This is what we are doing to replace rating. Alternatively, he must stop and ask himself "Is it really a good idea to continue devaluing the rating system and with it the process of local government?" The right hon. Gentleman should remember that rates have some distinct advantages. They are pretty easy to collect. It is one of the taxes that is difficult to avoid paying. Most householders have to pay their rates. The other advantage is that this is an area in which local councils can make a clear choice. They can increase the rates and improve services or they can peg services and hold the rates. Until the right hon. Gentleman started to introduce so many complicated systems for topping up local government finance, most electors had a clear understanding about the level of rates and the level of services. I suggest that the Secretary of State's long-term plan is to discredit and abolish local government. He can do that simply by coming to the House and saying that the Government do not believe that local government is efficient, so they wish to abolish it. If he did that, there would be a fight in the House, but at least it would be an honest, honourable way in which to tackle the matter. However, he has set out to undermine the local councils, to take away their powers and to leave them as mere rubber stamps. Yet he says that he still believes in local democracy. I shall give some examples of the way in which the Secretary of State's policies have caused problems for local government and forced it to become increasingly inefficient. The first is the way in which he has dealt with the rate support grant since he came to office. His continuous requests that local government should review spending meant that most local councils devoted vast amounts of their resources in time and energy to producing reviews for the Secretary of State and scrapping carefully prepared programmes and plans. Far more waste has occurred in the energies of local government because of the Secretary of State's economies than savings have been made. If the Minister believes in local government, why cannot he give it a chance to plan ahead? He should give it a clear undertaking about the Government rate support grant not for next year but for the year after, so that it can plan more than a week or two ahead. He should be aware that, if local government is to be efficient, it must have clear ideas about how much money it can spend and be able to plan any saving care Fully. It should not have to be told by the Government that they are changing the amount available. They are altering the rules as they go along. That has led to much uncertainty. We should consider some of the services. The Minister, in his statement, yesterday talked about a further cut in school meals provision. Local authorities will be faced with putting up charges once more. Local government does not have much control over this area, because the fixed costs of most school kitchens are there whether they are used or not. They must be paid for. That was decided some years ago when there was a campaign to get children to eat school meals. There are also the food costs, but most local authorities get their food for school meals at economical prices. Then there are staff costs. Almost everyone who is made redundant in the school canteen ends up as a charge to the Government either through the social security system or through unemployment benefit. Bearing in mind the wages that are paid to those who help with school meals, it almost always costs the Government more when they are out of work than to employ them in such places. It is not really a saving to the Government. They are wasting resources in manpower and the fixed assets in the kitchens. The Secretary of State also seems keen to cut back on home helps. Anyone who sees the magnificent work of home helps knows that they save money for the Government, because they enable many old people to stay in their homes who would otherwise be hospitalised or institutionalised. That costs much more money, yet almost all of the local authorities have been reviewing the number of home helps. From my experience, the number of those receiving home helps may not have fallen much, but the number of hours and the quality of the service have deteriorated a great deal. It may have saved some money for local authorities, but the costs have had to be picked up by the Health Service for people who have been forced into institutions and hospitals because of the cutback. I turn now to the issue of refuse collection. Much pressure has been put on local authorities to reduce the number of people employed in the service. Many of those who lose their jobs in that way end up as a charge to the Government in the form of unemployment benefit. It may not be quite the same amount of money that refuse collectors would wish to receive, but it is not far short. If one compares the unemployment benefit with the wages and takes into account the tax loss, one sees that the difference is not great. In almost every local authority area a poorer refuse service means more and more fly tipping, with the result that the environment becomes polluted. On the urban fringes many attractive walks are now spoilt by vast amounts of fly tipping, as local authorities have cut the refuse collection service or imposed charges for taking refuse to tips. Local authority services have also been cut in many other areas because of the Secretary of State's dictates, yet there has been no overall saving. It was announced yesterday that local authority budgets for education are to be cut. It is particularly sad that that also applies to further education. It is a non-cost-saving exercise. Unemployment benefit will have to be paid to teachers and students, so the Government will get a bad deal. The Secretary of State does not consider the actual savings. He merely makes a doctrinaire attack on local government. He suggests that local authorities are wasters, yet they provide a first class service. By implication, he attacks the character of councillors. One virtue of our democratic system is not that councillors are necessarily brilliant but they are hard-working and reflect a genuine cross-section of our population. We should praise them. Although they may now receive a loss of earnings allowance, they give a great deal of time and energy to serve the community. The Secretary of State should not attack councillors and take away their powers. The Secretary of State creates a great deal of resentment among local government employees by suggesting that they sit at their desks and do nothing. He should spend a few weeks in Stockport and see the work load of all the officers who work for the authority. They are hard-working and compassionate officials who show care and concern for the community that they serve. The Secretary of State should praise them. The Secretary of State is determined that he and not the local democracy should decide certain questions. Time after time when I visit Stockport schools I see leaking roofs, with buckets underneath to collect the drips, because the authority has been forced to cut and further cut the money for repairs. Surely the community should make such decisions. Anyone who has seen the leaking roofs would be prepared to spend the money. Some of the Stockport council houses are in an appalling condition because of lack of basic maintenance. The council should have been allowed to spend the money. The Secretary of State says that the people do not know best and that he does, even though he has never seen the problem. The Minister will argue that he who pays the piper should call the tune, but whose money is it? The local authority levies the rate, and the money to top up the rate support grant comes from taxes—from income tax and VAT. The local population provides the money, so it should best know how to spend it. I do not wish to take up too much more of the time of the House and I realise the pressures on hon. Members to try to complete the debate, but I wish to stress the bitter resentment that is felt in Stockport—an authority that believes that it has always provided an efficient service. In his announcement the Secretary of State asked it to cut back on the amount of money that it will be able to spend. The tragedy of Stockport is that it provides many services on a one-off, experimental basis. When Ministers come to Stockport they praise it. The people of Stockport would like those experimental services extended so that they cover the whole town. Then they would be able to give good value for money. The Secretary of State has mounted a major attack on local government. He should take his hands off local government and let it get on with doing what I believe is a good job. The Secretary of State was once happy to brandish the Mace in the House. I say to him firmly that he should take his hands off the maces of the local authorities. Leave their maces in place. Leave local democracy. Strengthen it, not weaken it.8.56 am
The hon. Member for Stockport, North (Mr. Bennett) made many sweeping accusations against the stance of the Secretary of State vis-a-vis his responsibilities towards local government. The hon.
Gentleman's suggestion that in principle the Secretary of State does not believe in local government, or that it is the Government's policy to destroy the authority of local government and the relationships between local government and central Government, is a travesty of the truth. However, I understand the hon. Gentleman's anxieties about the pressures that have been placed on local government in the context of our overall economic management. The hon. Gentleman should be the first to recognise—I think he does—that the relationship between local authorities and central Government must depend upon cooperation in terms of economic management. He knows that for generations there has been a relationship between the local authorities and the central authorities with regard to the financing of local government which has worked beneficially to both parties. It is not possible, in these days of grave economic difficulty, to allow local authorities merely to continue either to raise their rates or to borrow moneys, irrespective of the overall state of the national economy. For that reason, in recent times the Secretary of State has had to introduce in local government financing a number of restraints on what local authorities may expect to obtain from Government sources. It is interesting to note how modest in percentage terms those overall changes have been. The hon. Gentleman asked why it is not possible for the rate support grant to be made available for more than one year. He knows that, technically, it is not possible because Government financing is carried out from one Budget to another. However, he should recognise that the percentage grant which has been made available to local authorities has varied very little over the years. For example, in 1975–76, the percentage grant for non-metropolitan areas was 57·3 per cent.; in 1981–82 it is 55·9 per cent. For metropolitan areas, it has varied from 29·4 per cent. in 1975–76 to 30·8 per cent. in 1981–82. There has been far more consistency over the percentage of Government financing made available to local authorities that the hon. Gentleman at first sight appeared to suggest. The hon. Gentleman made a major attack on the competence of the rating system. He suggested that the Secretary of State was deliberately seeking to distort the rating system and to destroy the system upon which local authority financing had been based. At the same time, the hon. Gentleman wishes to have more local accountability, more consultation and more effectiveness in the local democratic process. The Government are seeking to offer a consultation paper on alternatives to the present rating system in such a way that everyone can have true consultation on the matter. He would be the first to recognise that the present problem with the rating system is that many industries, and hence many jobs, are at stake because the rate of impost by local authorities has reached a point where it is no longer bearable. Therefore, the Government, in pursuance of their view that they should find for local authorities the most equitable form of financing, have now introduced a wide-ranging consultation paper. I suggest to the hon. Gentleman that what the Government are now doing is just what he would wish to see done, that is, achieving more democratic consultation about the fundamental problems of trying to obtain a more equitable local financing system. The hon. Gentleman suggested that there was a personal vendetta between the Secretary of State and perhaps the role of councillors and the role of local authority workers. I put it to the hon. Gentleman that that is far from the case. In his statement today to the consultative council on local government finance, the Secretary of State said:That is in no sense an attack on local government—either on those who work in it or on those who work for it. It is the plain truth of the economic condition of the day that for far too long rates and taxes have been levied locally at a faster rate than economic productivity has provided the wherewithal. It is for that reason that it is now essential to call a halt and to re-examine the position. The hon. Gentleman's other suggestion was that the morale of local government was seriously at risk and that this in some way could be attributed to the Secretary of State's own actions. There are many aspects of the relationship between central Government and local authorities which have shown even higher degrees of cooperation than in the past. I draw the hon. Gentleman's attention particularly to the improvements made in relation to planning, where, through voluntary co-operation, local authorities and the planners who work within them can be congratulated on the admirable co-operation achieved in speeding up the handling of planning applications and in trying to carry out their part of the planning process with even greater efficiency than before. In the case of the derelict land grant initiative, a new initiative announced by the Secretary of State a week ago, the local authorities which met him last Friday expressed very keen interest in what was on offer to try to solve, by wider and more general use of the derelict land grant scheme, some of the urban problems that local authorities such as his own may well face. This is an example of even further control and co-operation. With regard to land registers—another recent initiative of the Secretary of State—a great deal of co-operation has been formed with local authorities in the 35 land register areas that we now have on offer. I fully understand why the hon. Gentleman seeks to lay at the door of the Secretary of State these various charges. It may well be true that, when a Secretary of State is seeking to pursue an effective policy which the Opposition dislike, it is a mark of its effectiveness that it should draw attack from an Opposition Member. I believe that the way in which the hon. Gentleman has attacked the Secretary of State today indicates that my right hon. Friend's policies seem in every way to be right, just and effective."I cannot stress too strongly, therefore, that higher pay rises can only lead either to faster staff reductions within local government, or to higher rate increases, and hence higher unemployment, in industry and commerce."
Question put and agreed to.
Bill accordingly read a Second time and committed to a Committee of the whole House; immediately considered in Committee.
Bill reported, without amendment.
Motion made, and Question, That the Bill be now read the Third time, put forthwith pursuant to Standing Order No. 93 (Consolidated Fund Bills) and agreed to.
Bill accordingly read the Third time and passed.
Statutory Instruments, &C
Motion made, and Question put forthwith pursuant to Standing Order No. 73A(5) (Standing Committee on Statutory Instruments, &c.).
Fish Farming
That the Marine Fish Farming (Financial Assistance) Scheme 1981 (S.I., 1981, No. 1653), a copy of which was laid before this House on 27th November, be approved.— [Mr. Berry.]
Question agreed to.
Hops Marketing Bill Lords
Ordered,
That, in respect of the Hops Marketing Bill [Lords], notices of Amendments, new Clauses and new Schedules to be moved in committee may be accepted by the Clerks at the Table before the Bill has been read a Second time.—[Mr. Berry.]
Down's Syndrome (Hospital Treatment)
Motion made, and Question proposed, That this House do now adjourn.—[ Mr. Berry.]
9.4 am
I am very grateful to Mr. Speaker for giving me the opportunity to raise today a matter of, perhaps, the most basic of all human rights—the right of a child to life.
The House may find it strange that it should be necessary to raise this matter. I shall not seek to hide the fact that the circumstances that concern me arise from the recent highly publicised case of Dr. Leonard Arthur and the mongol child who died whilst in his care. I wish to make no more than a passing reference to that case, because Dr. Arthur, who is a very distinguished doctor, has been tried and, on the facts of his case, has been acquitted, and it would be quite wrong if he were to be seen to be hounded by any Member of this House. In particular, I do not wish to say anything today which would add to the suffering of the parents of the child in that case. They have gone through a great deal. They made a decision that I believe they may regret. Nevertheless, they made that decision, and they now live with it. The facts that concern me are very simple, and I have deliberately drawn them very narrowly. Where a child suffering from Down's syndrome, or mongolism as we more commonly know it, is rejected by his parents—as is very often the case—sometimes, but by no means every time, it appears that the medical attendants to that child in hospital withdraw anything more than nursing care. "Nursing care only", which is what I understand is put on the case sheet of the child in question, sounds rather compassionate and caring. What it means, in fact, is that the child is kept as comfortable as possible, is given small quantities of water, but is not fed. Of course, the inevitable outcome, even if there is no other treatment, is that the child will die; and such children die. They die partly because they are severely handicapped, but also because there is the added factor that their parents do not want them, and it is felt by some paediatricians—by no means all; I stress that—that they are children for whom society has no use, and that they should therefore be permitted to die. I stress that I am not speaking of grossly malformed children. We are not speaking of children who are born with dreadful malformations, such as the brain being outside the head, or other dreadful circumstances which require advanced operative techniques to try to alleviate the suffering. I am speaking simply of mongol children. Most mongol children need nothing more than warmth, comfort and food in order to survive. Putting it at its very lowest, it seems very sad that, simply because we feel that we have no use for such children, they should not just be permitted to die but their deaths should be brought about by some members of the medical profession. I am greatly concerned about this matter, partly because I have a mongol child. In the case of my wife and I, these circumstances did not arise, because we did not reject him. I would not blame any parent who does so because I have to say, from personal experience, that when one learns that one's wife has given birth to a mentally handicapped child, the sense of shock is such that one is incapable of making a rational decision. I have only the very haziest of memories of that time. Fortunately, my wife and I took what I believe to be the right decision, but that might well have been a matter of luck. I believe that there is a very significant general principle involved. If we permit distinguished doctors in our name as society to decide who shall or shall not live, we must ask where this will lead. At a later stage, when we have come to accept this procedure as normal, shall we begin to consider other handicaps and to say that perhaps blind or deaf children shall be similarly disposed of because they may be a burden on society? Is not that what happened between the wars to members of the Jewish faith in Germany? They were thought to be inferior and so they were disposed of. Hitler could not have disposed of them if he had not had the active help of some members of the German medical profession. Surely a society that professes to care about the least fortunate of its members would not dispose of handicapped children but would seek to help them. I believe that that is what we should do. It is difficult not to be over-emotive about this subject, as it concerns tiny children, but it is right that we should examine both the ethical and the legal implications. I am delighted to say that yesterday I received a letter from the British Medical Association making its position absolutely clear. I was very pleased indeed to receive that letter as I had thought that there was some equivocation on the part of the BMA. I am delighted to say that there is not. The relevant paragraph reads:In other words, the BMA does not distinguish. It says that all patients have the same right to treatment—or in this case, the same right to be fed, if that can be described as treatment. Among the many letters that I have received since Mr. Speaker was good enough to select this debate was a very short letter from a lady in Colchester which I found most impressive, partly because it was so short and partly because she managed to encapsulate the whole problem in two short paragraphs. She said:"The BMA believes that all patients, regardless of their age or condition affecting them, have the same right to treatment. A fit young adult with an acute curable illness has no different rights to an elderly patient, to a malformed infant or to a normal healthy infant."
"I am writing to offer my encouragement and support for your Adjournment Debate on the Hospital Care of rejected Down's Syndrome babies.
That lady suffers from spina bifida, but she has reached adulthood and she is married. Yet it is conceivable that in different circumstances she, too, might have been "permitted to die", as it is euphemistically called. The legal position seems very clear. I am not a lawyer, but, as I understand the position and as I understand the statement in writing of my right hon. and learned Friend the Attorney-General, the law does not differentiate between types of victim and types of killer. It does not say that it is permissible to kill citizens of one class because they are handicapped. Nor does it say that a "killer"—it is perhaps right to put the word in inverted commas—or one who kills by withholding food from a child is any less guilty because he happens to be a distinguished paediatrician acting out of perhaps the best of motives. If a child, handicapped or not, is allowed to die when it need not have died, that child has been killed and the law should recognise that and the law should be enforced. My request to my hon. Friend the Minister for Health is a simple one. I hope and believe that I am pushing at an open door, but I want members of the medical profession to be reminded of their duties and for them to know that if they take on themselves life and death decisions, with nothing more than a slightly arrogant assumption that they know best, they stand in danger of the law being applied against them. It is important that we uphold the law or, if we believe that it is wrong, change it. Every hon. Member would have to say whether he or she wants to pass a law allowing doctors to kill children. Until then, we have an obligation to ensure that the protection of the House is extended as widely as possible. I cannot believe that there is any doubt in the mind of any hon. Member, but if there is I extend the invitation that I extended in a newspaper article at the weekend. I have a mentally handicapped son suffering from the same disability as the child in the Arthur case. He has survived to the age of nine and has brought great joy not only to his family, but to everybody who has met him. If there is doubt in any hon. Member's mind, I extend to him or her an invitation to come to my home to meet that mentally handicapped boy and to experience the sheer joy in life that flows from him all the time. I do not believe that, having done that, anyone would say that it would have been right to kill him at birth. But that is what happens in too many cases. We like to think that we are a civilised society, but I do not believe that we are —not while we permit such things to happen in our name. A civilised society locks after handicapped people. It does not destroy them.I was born with spina bifida—another condition whose victims are now often 'left to die' by doctors. I am appalled that the handicapped do not now seem to have an equal right to the protection of the law, and I wish you every success in your effort to reverse this trend."
9.17 am
I am sure that the whole House would like to thank my hon. Friend the Member for Dorking (Mr. Wickenden) and to express its appreciation of the way that he raised the subject and reminded us of the deep moral and personal issues involved. Many of us read my hon. Friend's intensely human and sympathetic article headed:
in the Sunday Express at the weekend. Following the two recent court cases, the care and treatment of children born with mongolism has been in all our minds over the past few months. It has certainly been in the minds of parents and relatives of doctors, nurses and all those who care for young children, and in the minds of lawyers and a host of thinking people throughout our community. My hon. Friend wisely limited his speech to babies with Down's syndrome and made it clear that he was not talking about children with very severe physical handicaps. There have been enormous advances in the care of mongol children in recent years and the Royal National Society for Mentally Handicapped Children and Adults and the Down's Children's Association, as well as a number of other voluntary organisations, have done a magnificent job to widen our knowledge and to see that better facilities are available for helping those children. I know from my professional experience that many mongol children are a great joy to all who meet them. They are lively, often surprisingly musical and almost always deeply affectionate. However, we must be realistic. As my hon. Friend reminded us, other mongol children have multiple and often severe handicaps. Discontinuous bowels are very common, as are grossly abnormal hearts and lungs. These conditions are so severe that a healthy survival is unlikely. The question before society today is whether the doctors have been taking too much upon themselves. What should be the rights of parents in this sort of situation? What are their rights over another person's life, even if that person happens to be their child? What is the role of the courts? These are very difficult questions. They have been highlighted by the court cases of baby Alexandra and by the trial of Dr. Leonard Arthur of Derby city hospital. To my mind, there are three conclusions from these two cases. The first is that where a handicapped baby is rejected by its parents, this need not be the end of the story. For baby Alexandra it was the doctors who drew the attention of the social services department to her problems and asked that something should be done. This is very important. It is known that many parents who at first reject their child have later been able to build up a loving and very living bond that they have never regretted. I saw this happen quite frequently with the thalidomide handicapped children. For the first few weeks, the parents totally rejected the child but later developed a bond of affection and had the child within the family, with great happiness and joy to everyone. One aspect is that parental attitudes do change. Secondly, when reaching a decision in conjunction with parents and professional colleagues, a doctor must surely obey the law of the land. There cannot really be any argument about that. As my hon. Friend has remarked, if the law is not correct or not satisfactory in society's view, we must look at the law. So long as the law is there, the professional people must work within it. Thirdly, a doctor or nurse must conform to the ethics of his or her profession. We have very high standards of ethics in this country. Professional advice is given by the British Medical Association in its handbook on medical ethics. I understand that the association is looking again at the matter in the light of the two recent court cases. The handbook can only set out general ethical principles. At the end of the day, individual cases, individual people, children, must be judged individually by the doctors and parents concerned. It seems that public opinion agrees with the joint professional statement issued recently that it is right to allow doctors considerable freedom when coping with the birth of a handicapped baby. The general view seems to be that this is correct. Part of what draws a doctor or nurse into medicine and part of their whole attitude, built into their training, is the dictum of Sir William Osier, to which I have referred previously in the House—"To comfort always." Built very deeply into their training is the concern to save and not to destroy life. Most of my experience of complaints in the past relates to people who say that doctors and nurses have been too active in sustaining lives that were really unsustainable, not the reverse."The sheer joy and love that could so easily have been dented to me"
I wish to ask the Minister one question that I should have liked to raise if I had been able to take part in the debate. The hon. Gentleman mentioned that there was a great deal of discretion in individual cases. Will he confirm that the general principle of the preservation of life remains a central medical issue of ethics?
Yes, of course. This is built into the medical outlook. It may partly be what attracts people into medicine. I was glad to hear of the assurance that my hon. Friend the Member for Dorking has received from the British Medical Association to the effect that the prime duty is to save life and not to take it.
This week's British Medical Journal contained an editorial on this subject. It said something that I consider important:I understand the problems within a family and within a group discussing this subject, but if the action is correct, it need not be concealed. It should be open to questioning, and if necessary it should be open to the courts. If it is right to take a particular course of action, it is right that that action should be questioned, if need be. It is difficult to contemplate a situation in which a child capable of any kind of real life is deliberately allowed to die. Certainly, that should not be done on social grounds. I find that quite abhorrent and morally wrong. What happens when a body is so deformed, so little a person, that only the most heroic efforts will achieve any existence at all, and then perhaps for only a short time? This is where the difficulty arises. I pay tribute to the parents who consciously—conscientiously—resolve to respect the right of life of the handicapped child and keep the child within the family. I suggest that they will never regret that decision. They have to make that difficult decision when, as my hon. Friend said, they are often confused and unsure about what to do. I stress, too, the difficulty that doctors face in giving advice in such circumstances. It is not always easy. Professor John Lorber said in his letter to the British Medical Journal on 28 November that often"the decision to withhold treatment and let an infant die should be made openly".
We recognise the position as it is at the moment, that each case should be considered individually, and that the overriding, paramount consideration is to sustain and preserve life, not to do the reverse. I doubt whether it is a matter on which the Government should take action. That is my personal view. I believe that it is a matter for the parents, the doctors and the courts. We are, of course, considering carefully the implications of the recent cases, and if it appears that some action is needed we shall be willing to take it. As I have said, these are difficult matters. My hon. Friend has rightly drawn attention to the problems, and I am sure that the whole House will pay tribute to him for bringing the matter to our attention today."it is parents who love their newly-born child dearly who have to be helped to reach a decision whether to embark on a course of active treatment to prolong its life, or to let nature take its course".
Question put and agreed to.
Adjourned accordingly at twenty-seven minutes past Nine o'clock am.