What plans she has to increase the number of Irish language schools. [54760]

Following the Government's commitment in the Belfast agreement, the Department of Education has a statutory duty to facilitate and encourage Irish-medium education and is drawing up proposals for the funding of a body to promote its development. In addition, arrangements are in place to enable Irish-medium pre-school provision to be grant aided within the pre-school education expansion programme for Northern Ireland. Around 1,250 pupils are currently enrolled in grant-aided Irish-medium schools in Northern Ireland.

I thank my hon. Friend for his answer, and for the requirement in the education order to encourage and facilitate Irish-medium schools. Does he acknowledge that an impediment to achieving that objective remains in the school numbers criteria, which restrict several Irish-medium schools, such as the Meanscoil Dhoire in Derry, from receiving registration and funding? Will my hon. Friend undertake to reconsider the school numbers criteria so that the agreement's laudable objective of increasing the number of Irish-medium schools is achieved?

I thank my hon. Friend for her comments. We recently reduced the viable entrance criterion from 100 to 80 for secondary schools. The school to which she referred does not, unfortunately, meet current viability thresholds, but we are considering setting up an Irish-medium unit at St. Brigid's secondary school. The school to which my hon. Friend referred is receiving £120,000 from the European Union, and there is a possibility of further capital funding.

The Belfast agreement refers to the Council of Europe's charter for regional and minority languages. Can the Minister confirm that it states that the promotion of Irish should take place only where it is desired, and that Irish will not be generally promoted throughout Northern Ireland, where only 3 per cent. of people are fluent in it?

I understand the right hon. Gentleman's point. Irish-medium education depends on viability and on whether people want to be taught through the medium of Irish. As far as general use of the Irish language is concerned, the Government are committed to ensuring that there are no obstacles in the way of those who desire to learn it and use it.

Which parties in the Northern Ireland Assembly she has met to discuss the level of public support for the peace process; and if she will make a statement. [54762]

My ministerial colleagues and I have met all the political parties represented in the Assembly several times, and I met most of the parties yesterday to discuss support for the Good Friday agreement and how we can maintain momentum.

I am grateful to my right hon. Friend. Will she join me in congratulating the right hon. Member for Upper Bann (Mr. Trimble) and the hon. Member for Foyle (Mr. Hume) on winning the Nobel peace prize? The prize confers great honour on the House, and every hon. Member should recognise that. Will my right hon. Friend tell us what hopes she has for the initiative taken by the First Minister and the Deputy First Minister to find a consensus among all the parties in Northern Ireland on progress towards the next stage of implementation of the Good Friday agreement?

I thank my hon. Friend for that question and join him in congratulating the right hon. Member for Upper Bann (Mr. Trimble) and the hon. Member for Foyle (Mr. Hume) on their tremendous achievement. They both deserve it royally. The initiative mentioned was launched on Monday and I understand that it will commence tomorrow with discussions with all the parties in an attempt to resolve a number of outstanding issues under the Good Friday agreement. I wish them every success in that effort. It is important that they are dealing with the issues between the parties on the ground and discussing them themselves. I wish them luck.

May I refer the Secretary of State to ceasefires by paramilitary organisations? I am sure that she wants to ensure that the Government operate even-handedly. In particular, I refer her to the ceasefire by the Loyalist Volunteer Force, which has held for several months and appears to be just as genuine as any other paramilitary ceasefire. What is the attitude of the Northern Ireland Office to that ceasefire? Has she received recently any fresh assessment from any element in the security forces with regard to it?

I thank the right hon. Gentleman for that question. I assure him that I want to act even-handedly with all groups associated with trying to find a ceasefire. He particularly referred to the LVF. I have said before that I will keep the situation under constant review, and I have. I have received a recent report from the security forces which I am reviewing. I have said that I will make a judgment in the following weeks on whether I think that the situation needs to be reviewed. It is a serious, difficult issue and I assure the right hon. Gentleman that I am not dragging my feet.

We in the Northern Ireland community greatly rejoiced at the award of the Nobel peace prize to my party leader and the leader of the Ulster Unionist party. We have made our exaltation known to them personally already. The Secretary of State will share my disappointment that this phase of the Belfast agreement is not likely to be implemented by 31 October. Does she agree that the immediate cause of the impasse is the failure to agree on the departmental structures of the north of Ireland and on the implementing bodies north and south? While both communities desire at least token decommissioning of weapons by both republican and loyalist paramilitaries, that thorny and emotive problem was handed by the agreement to an international, independent decommissioning body.

It is important to have deadlines to focus people. I hope that we continue to work to 31 October even though it is close and it may be difficult to get there. That does not mean that we should not try. Several issues are creating difficulties: decommissioning and the Executive body. Then there is the progress that I hope that the parties will make with the work done by the First Minister, the Deputy First Minister and the parties tomorrow. It is important that progress is made in parallel on all aspects of the agreement so that confidence can be built and we can get more momentum back in the process.

What would the Secretary of State regard as satisfactory and significant progress by the 31 October deadline, given that the First Minister and the Deputy First Minister have been working hard over the summer, especially in the past few weeks, to make the progress that we need for a lasting settlement?

It is difficult for me to set an absolute baseline. Obviously, we want as much progress as possible, but what is happening more and more—and this is what is important—is that it is the parties, their leaders, the First Minister and the Deputy First Minister who are trying to take the process forward. Of course, the Government will do all that we can in terms of pace, help and encouragement—as, I am sure, will the Irish Government—to help make progress.

Will the Secretary of State accept that all reasonable people would expect there to be no further early releases of terrorist prisoners until there is substantial and verifiable decommissioning of all illegally held weapons and explosives?

I appreciate the support of the right hon. Gentleman and his party for the Good Friday agreement. I look forward to that support extending to its contents. As the right hon. Gentleman knows, neither he nor I—no one—can renegotiate the Good Friday agreement. It is there and it says that there must be progress in parallel on all the different dimensions. It also says that if progress is not being made on different dimensions, it can be reviewed. I have not forgotten that. This is not about grabbing headlines. This is about the work taking place on the ground by the parties trying to make progress. We should give them the support, encouragement and space necessary to do that.

Will the Secretary of State accept that, from the Dispatch Box, her Prime Minister made it clear that decommissioning was part of the agreement and part of the renunciation of violence? We have now had over six months and not one single gun or one ounce of Semtex has been handed in. Over the same time, over 150 hardened terrorist prisoners have been released early. That is not parallel.

I have made clear to the right hon. Gentleman on other occasions the words of my right hon. Friend the Prime Minister and I shall repeat them. He said that decommissioning is crucial, that it is a central part of the agreement and that we want all dimensions to move in parallel. If there is no progress, we will review it. I am sure that the right hon. Gentleman will acknowledge that the previous Prime Minister, the right hon. Member for Huntingdon (Mr. Major), gave a commitment that we would support the parties, the people and the Parliament when they made a decision. That is what we intend to do.

What plans she has to improve mental health provision. [54763]

I am sure that the hon. Gentleman will know that the plans for the development of mental health services are set out in the document, "Regional Strategy for Health and Social Well-Being 1997–2002". That document sets out quality targets and time scales so that we can be sure that we do all we can to meet the needs of the most vulnerable in society.

I welcome that response, but will the right hon. Lady accept that, while there are those of us who have been supporting care in the community, there is also deepening concern that there may not be enough secure units for people who need special help? Will she also accept that the changes suggested for Muckamore Abbey hospital—taking the power of decision from parents and guardians—are causing great concern in relation to children and young people, who are particularly vulnerable?

As the hon. Gentleman will be aware, there are six traditional hospitals with secure units for people with mental health difficulties and there are wards within the major hospitals. The plan that is being put together will look at the question raised by the hon. Gentleman—need in relation to community. The hon. Gentleman will know from his constituency that beds have been moved from one institution that helps people with mental health difficulties to another. It is those specifics that are being considered by the regional strategy to ensure that the aims stated by the hon. Gentleman are those achieved. There is a section addressed particularly to young people because, as the hon. Gentleman and I agree, that is a crucial part of the future development of mental health care in Northern Ireland.

Is my right hon. Friend aware that the House will welcome her robust defence of the entirety of the Belfast agreement? Will she ensure that that applies also to the proposed powers—

Order. This question is about mental health. Perhaps I will look to the hon. Gentleman on a more appropriate question.

What steps her Department has taken to ensure high educational standards in Northern Ireland. [54764]

Educational standards have improved substantially in recent years, but they could be higher still. The school improvement programme and a number of other initiatives, including a reduction in class sizes for the youngest pupils and the expansion of pre-school education, have been introduced to ensure that standards continue to improve.

Does my hon. Friend agree that educational standards and, probably as important, wider community development would be greatly enhanced if we could promote integrated education much more widely in Northern Ireland? Can he assure me that every effort is being made by the Government to promote the transformation of schools into integrated schools so that many more of our children in Northern Ireland can grow up in an atmosphere and culture of co-operation and learning across the religious divide?

I agree with my hon. Friend. Integrated education provides an opportunity for young people in Northern Ireland to be educated in a unique way. I am glad to tell the House that there are now 40 such integrated schools in Northern Ireland. We have also set up a co-ordinating group to improve the further development of those schools and we intend to spend a further £30 million in the next three years on integrated education in Northern Ireland.

Does the Minister agree that the provision of a pre-school place for every child whose parents seek one will eventually increase the achievement of children at primary and post-primary level? Does he further agree that greater collaboration between grammar schools, secondary schools and colleges on local education provision could enhance standards? Does he agree that there is now a unique opportunity under the Labour Government for secondary schools to embark on providing lifelong learning for the whole of the communities that are served by them, thereby raising standards for every individual?

I agree with the hon. Gentleman. Much of what he has said is the policy of my party. Across the board—from pre-school to further education—the Government are committed to the points that the hon. Gentleman has made. We are ensuring that there are 2,200 extra pre-school places from September. That is the largest increase ever. We have spent £50 million extra in Northern Ireland on education. I am grateful for the hon. Gentleman's questions. I agree with every point that he has made.

What progress has been made towards strengthening the economy in Northern Ireland. [54765]

What progress has been made in promoting a strong and sustainable economy in Northern Ireland. [54768]

The Northern Ireland economy is performing very well. Unemployment continues to fall and is at its lowest level since 1980. Manufacturing output is outpacing the United Kingdom average. The Chancellor's economic package announced in May offers major benefits, and the current north American investment tour has attracted significant interest. These measures will greatly assist us to exploit the economic opportunities presented by lasting peace and stability.

I spent time working in Northern Ireland in the late 1980s encouraging enterprise. The business climate is now transformed and the economic prospects are far better. I welcome the north American investment tour. What indications are there of its success? What other measures are planned to ensure that more Northern Ireland companies do more business in our European home market?

It is too early to say what the outcome of the 11-city tour, or north American investment tour, will be. We have attracted more than 1,000 business interests from the cities that we have visited. We have had a high-quality input from the business community in north America and we have had a high level of endorsement from existing United States investors in Northern Ireland. I pay tribute to everyone who participated in that north American tour, including the right hon. Member for Upper Bann (Mr. Trimble), and the hon. Members for Newry and Armagh (Mr. Mallon) and for Lagan Valley (Mr. Donaldson).

I left Northern Ireland at the age of 18 because of the lack of job prospects. Does the Minister agree that structural unemployment is one of the key issues facing Northern Ireland, and will he outline the success of the new deal in Northern Ireland, with particular reference to the environmental task force and community and voluntary groups?

My hon. Friend has touched on an important range of matters. He is right about structural unemployment, which is an endemic and deep problem within Northern Ireland's economy. One of the initiatives we have taken is a £40-million package announced by my right hon. Friend the Chancellor earlier this year, which is to be targeted on long-term unemployment among those aged 25 and over. That will provide schemes covering up to 30,000 unemployed people and will go a long way toward redressing much of the structural unemployment-causing imbalance inherent in the Northern Ireland economy. The scheme represents one third of the total UK schemes for the 25-plus group. It sits alongside other initiatives covering 18 to 24-year-olds and the new measures the Government are taking through the targeting social need initiatives.

Does the Minister agree that strengthening the economy requires long-term planning? Will he tell the House what long-term plans were made in respect of prison officers who, inevitably, would be made redundant as a result of political progress in Northern Ireland? Will he tell us how many prison officers are likely to be made redundant over the next two years; and what efforts have been made to put in place fast-track retraining facilities to deal with those officers who are likely to be thrown on the scrap heap of the unemployed?

My feeling is that many of the prison officers who enter the employment market will not be thrown on the scrap heap of the unemployed, if we can increase the level of job opportunities in Northern Ireland. To achieve that, we need to have peace and stability. The number of prison officers who are likely to be made redundant is rather indeterminate, depending as it does on the pace of prisoner releases and changes in the approach taken toward the whole prison regime in Northern Ireland. A review is currently taking place of the long-term needs of the prison regime as it serves Northern Ireland's interests. In addition, through the Prison Service, we have entered into negotiations with prison officers to look at some of the issues—indeed, all of them and more—the hon. Gentleman raises.

Given that the agri-food industry is the largest industry in Northern Ireland and that farming faces its biggest crisis this century, with farm incomes down 50 per cent. in two years and agricultural bank debt increasing to £500 million, when are the Government going to act to prevent a major collapse in the rural economy; or is that yet another price worth paying in the fight against inflation?

To hear any Conservative Member bleating on behalf of farmers is a bit rich, given what the Conservatives did to the farming community during the many years they were in power. The Government have set out to deal with the problem of BSE that we inherited; to return confidence to the meat and livestock markets; to take new initiatives to give support to the farming community; and to ensure that a local purchasing approach is taken within Northern Ireland's economy. That last measure is important, because farming is an important part of the overall economy in Northern Ireland. We have grasped the issue firmly and we are making progress. [Interruption.]

Order. The House must come to order. We can barely hear what is being said.

What steps she is taking to encourage more women to become involved in elected politics. [54766]

In dealing with that question, we should be careful not to make the mistake of thinking that, because no women from Northern Ireland have been elected to the European Parliament or to the House, women in Northern Ireland are not politically active. Over the years, women in Northern Ireland have done a lot to build the peace process, and to build trust from the bottom up. Of the 108 Assembly Members, 14 are women. Ultimately, it will be for the parties to decide whether women manage to come through and win election.

I thank my hon. Friend for that reply, and warmly welcome the progress that is clearly being made in Northern Ireland to ensure that more women participate in elected office. Does she agree that further progress towards gender equality in elected office could only assist the peace process, and that such equality will be a clear and visible indication that all sections of both communities are participating and being represented in the on-going peace process?

I agree with my hon. Friend, and assure her that what we can do in monitoring, targeting and encouraging movement in the public sector, particularly the civil service, is being done. It is the political parties themselves that will be involved in making progress, and I am sure that they have heard her message.

Although I welcome any action to encourage more women to stand for elected office in Northern Ireland, may I ask the Secretary of State whether she will resist the temptation to revert to a former socialist policy of single-sex lists for nomination—bearing in mind that most women wish to be elected not only because of their ability, but because of what they stand for and can offer to the electorate?

I am sure that the hon. Lady heard me say that the matter is for the individual political parties, whether they are in Britain or in Northern Ireland.

What measures her Department has taken to promote equality of opportunity in Northern Ireland. [54767]

Parliament is currently considering the Northern Ireland Bill, which provides for a new equality commission and for a new statutory obligation on public authorities to perform their functions with due regard for equal opportunities.

I thank my hon. Friend for that reply. I also welcome the establishment of the equality commission—as, I am sure, will the recently established Northern Ireland Low Pay Unit, which, I am sure, will receive the House's support. Does my hon. Friend accept that, in addition to those developments, the new deal—about which we have heard much today—and the national minimum wage will have a major impact in Northern Ireland by reducing the disproportionate impact of low pay and the gender pay gap between men and women in Northern Ireland? Will he tell the House when the national minimum wage will be introduced in Northern Ireland?

I assure my hon. Friend that the national minimum wage will be the same across the United Kingdom and that the Northern Ireland Assembly will have no power to vary it. I can tell him also that discussions are continuing on other aspects of the National Minimum Wage Act 1998 for which the Northern Ireland Departments are currently responsible.

Will the Minister confirm that, in Northern Ireland, there must be equality of opportunity between democrats and the representatives of gunmen, and that there can be no progress in the peace process by placing the representatives of armed tenor in government while terrorists remain fully armed with explosives and guns?

It is very important that, as my right hon. Friend said, we implement all aspects of the Good Friday agreement, which was a package in favour of which the people of Northern Ireland voted by a very large majority. Events in the next few days in Belfast—with talks between the First Minister, the Deputy First Minister and all the party political leaders, including the hon. and learned Gentleman—will go a long way towards ensuring that those problems are resolved.

My right hon. Friend the Secretary of State and my hon. Friend the Minister said that the agreement had to be implemented in full. Will my hon. Friend therefore give an undertaking to the House that all the direct powers given to the equality commission and to the human rights commission and outlined in the agreement will be put in place, specifically with regard to victimless crimes?

My hon. Friend is aware, because we met earlier today to discuss these matters, that I and my right hon. Friend have had many meetings to consult on various aspects of the Bill—probably an unprecedented amount of consultation. I assure him that the agreement will be implemented in the Northern Ireland Bill.

What is the estimated cost of the security forces' deployment at Drumcree in 1998. [54769]

The additional cost of the Royal Ulster Constabulary operations at Drumcree, including the consequential impact elsewhere, during July 1998 amounted to approximately £11 million. Since July, additional costs have continued to be incurred by police at approximately £400,000 per month, due to the continuing protest.

I thank the Minister for that reply. Does he agree that had the Parades Commission taken the right decision and allowed the parade down the Garvaghy road, the expenditure would have been much less. Does he further agree that had the proper decision been taken, the subsequent deaths and injuries might not have occurred? Finally, will he acknowledge that, as a result of the bad decision, community relations are at an all-time low in the Portadown district?

It is worth while reflecting momentarily on the fact that one Royal Ulster Constabulary officer has lost his life as a result, and many others have been driven from their homes because of thuggery and brutal actions against them and their families. I am surprised that the hon. Gentleman did not refer to that.

If he will list his official engagements for Wednesday 28 October.

This morning, I had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

I am sure that the Prime Minister will agree that a common European Union withholding tax would be disastrous for employment and for the earnings of the City of London. Will he agree to use our veto if necessary to stop that happening?

We will certainly use our veto to stop any measure that will harm the City of London. I have to say that not all measures that we agree with our European partners would do that, but if any measure did do that, we would certainly not hesitate to use our veto.

My right hon. Friend will be aware that in the House last night the Conservative Opposition attempted to prevent British workers from being protected by basic minimum standards for hours of work, rest breaks and paid holidays. Will he assure me that the Government will continue to promote fairness in the workplace, thus ensuring that the Conservative party, which opposes the minimum wage and minimum standards, will remain a very minimum party?

We will certainly introduce the minimum wage. We believe that the Opposition's calls for the minimum wage to be cancelled next year are wrong and do nothing for people on very low incomes, for their families or for the economy. We believe that basic, fair, decent standards in the workplace are fully compatible with an effective and dynamic economy.

The Prime Minister committed himself at the election to a referendum on the voting system in this Parliament. Is he still committed to it?

We have made it clear that we will state our position when the Jenkins commission reports tomorrow.

What is wrong with answering a question in this House yes or no? Does not the Prime Minister's answer reveal that he has got himself into something that he does not know how to get out of? He now has the Foreign Secretary, wherever he is, passionately in favour of proportional representation, the Leader of the House passionately against it, and himself passionately concerned to avoid answering the question, not knowing whether to betray the Liberal party or the Labour party. He has got himself into an indecisive position, like the late—[Interruption.]

Order.

The Prime Minister has become as indecisive as the late Lord Wilson, who also had a faithful dog called Paddy, although not on this particular subject. On 11 February 1997, he said in the Financial Times:

"We have made it clear all the way through that we are committed to a referendum and we are committed to it as part of our programme for the next Parliament".

As indeed I said a few days ago, we have always envisaged holding a referendum this Parliament, but we have also said that we shall wait for the Jenkins commission, to see what precise system of voting change it proposes. I should have thought that it was sensible to wait for the Jenkins commission to report before stating a view on it.

How is it that a commitment in the Labour party manifesto depends on the writings of the former leader of the Social Democratic party; and that the Prime Minister now envisages keeping a promise, but will wait to see whether he is going to do so? [Interruption.] Even he is laughing at the silliness of his own answers.

First, we have made it clear that it is sensible to wait for the Jenkins commission to report, because obviously, the system that Lord Jenkins proposes will be relevant in determining the position of the Government and the referendum.

Will my right hon. Friend join me in congratulating the women in Stourbridge on taking a stand against domestic violence and joining the NSPCC and the police locally tomorrow, at a meeting, to bring attention to the appalling reality of violence in the home? One in 10 women suffered violence in the home last year, and one in four have done so at some time in their lives. Is my right hon. Friend aware that—even worse—in 70 per cent. of cases where the woman was abused, the child was also abused; and that, in 90 per cent. of cases where the woman was abused, the child was in the room or next door? This cannot go on.

Yes, domestic violence has been a problem that has probably been going on for a long period, but we are more aware of it today than ever before. I am pleased to say that my right hon. Friend the Home Secretary and the police are taking it far more seriously now, and will produce, over the next few months, a plan to try to reduce domestic violence and help its victims.

Will the Prime Minister acknowledge that loss of life on a substantial scale, starting with children and the elderly, is now only weeks away in Kosovo? [HON. MEMBERS: "Not again."] I am amazed to hear that from the Conservative Benches. Of course it is right that President Milosevic should have responded to the credible threat of the use of force, and that NATO should now preserve that on a hair-trigger. Should not our urgent attention now turn to the pitiful plight of the refugees who are suffering as a result of President Milosevic's brutality? Is not the scale and urgency of the international effort nowhere near what is necessary to preserve them and prevent a catastrophe yet to come?

The right hon. Gentleman is right to say that there is still an awful lot more to do. We have provided £1 million to the United Nations High Commissioner for Refugees for co-ordination and shelter for the people who have been displaced. We have also given extra money to a range of non-governmental organisations. In addition, we are sending our own assessment team to ensure that supplies get to the people who need them.

The fact that the people are coming out of the forest does not mean that their lives will be saved. They are moving to appalling disease, overcrowding and, in many cases, homes that have no roofs and food that has been wasted and exhausted in the past few months. Britain has taken the lead in pressing for stronger action in Kosovo.

I certainly can give an undertaking that we shall do whatever we can. I am advised at the moment that we do not think that the delivery of humanitarian assistance would be helped by the use of NATO planes, but I understand that additional measures are being taken to try to ensure that daily relief convoys reach the parts of the country that they are currently not reaching. We shall keep the situation closely monitored.

Has my right hon. Friend seen the disturbing report in today's issue of The Journal of Newcastle, using figures compiled by the Northern Development Company, that we are losing five manufacturing jobs in the northern region for every one being created? I therefore welcome the fact that my right hon. Friend has forced the issue of jobs and growth to the top of the European agenda, but I urge him to go further and please his friends in the north by working with the French and the Germans to forge a consensus around new Keynesian economic and financial policies.

We should do what is sensible for the long-term strength of the economy. There are three essential elements to the economic policy that we have outlined, which I believe to be in the interests of the north as well as of the rest of the country. The first is an end to the disastrous boom and bust of the Conservatives. Interest rates at 15 per cent. for a year or more and manufacturing output falling by 7 per cent. —that is the Conservative record. The first thing is to end that boom and bust by the new fiscal and monetary rules.

Will the Prime Minister confirm that nobody still requiring medical treatment has been taken off national health service waiting lists?

People who are on national health service waiting lists and require medical treatment are dealt with in the normal way. I am not aware of any change at all to that practice.

Will my right hon. Friend take this opportunity to tell my constituents who live around Wembley stadium about his discussions with the president of FIFA earlier this week? Will he assure us that Mr. Blatter did not leave these shores without being fully aware that England, in its bid to stage the world cup, has some of finest club grounds anywhere in Europe, and that Wembley stadium will be the finest new national stadium anywhere in the world?

Yes. There is a £300 million redevelopment project at Wembley. Wembley will be the finest stadium anywhere in the world. Mr. Blatter made it clear that, although he obviously recognised the strong case for an African country hosting the 2006 world cup, given the right facilities and infrastructure to do so, he also recognised England's very powerful case—with the finest stadiums in the world, massive new investment going into those stadiums and, as he pointed out, England of course being the motherland of football.

Since last week's Question Time, Ernst and Young has predicted that 500,000 manufacturing jobs will be lost in the next two years and the CBI has said that business optimism is at its lowest for 18 years. Does the Prime Minister still think, "Crisis, what crisis?"

I still think, as I said last week, that what is important is to get the issue in balance. Third quarter growth figures just reported show an annual rate of growth of 2.5 per cent. Since this Government came to power, 400,000 net new jobs have been created.

Well, I am glad that the Prime Minister has begun to realise that there is a problem. Business optimism may be at an all-time low, but Government complacency has so far hit an all-time high. A job is being lost every 10 minutes, and the Prime Minister has been inventing a new excuse every two minutes. The CBI has called for a cut in interest rates. We have called for a cut in interest rates. Even the Chief Secretary has been calling for a cut in interest rates. Will the Prime Minister instruct the Chancellor to announce when he comes to the House next week a change in policy sufficient for the Bank of England to cut interest rates by a full 1 per cent.?

I assume that we just heard the right hon. Gentleman's policy announcement that he wants us to scrap Bank of England independence. Half the Conservative Members are nodding their heads and the other half shaking them. As I told the right hon. Gentleman last week, and as I repeat today, all international institutions have downgraded their growth forecasts. However, as I also told him last week, a net 400,000 additional jobs have been created. His alternative, cancelling investment in schools and hospitals next year and cancelling Bank of England independence, would be a disaster for the British economy. When his policies were last implemented, interest rates were at 15 per cent. for a year or more and our schools and hospitals did not have the investment that they needed. That may be the right hon. Gentleman's policy to weather these difficulties; it is not ours.

Businesses in this country need a change of policy from the Government, not a history lesson from the Prime Minister. I can tell the Prime Minister that there is a serious problem out there, the economy is heading in the wrong direction, and the Government now have limited time to do something about it. Will he now put in place the conditions for lower interest rates, and does he realise that unless he does so he will have been fiddling with the voting system while jobs burn?