The Rt. Hon. Sir John Major KG CH

Category: 1979-1983 Parliament

  • Mr Major’s Commons Contribution on Local Authorities – 12 December 1979

    Below is the text of Mr Major’s comments during the Local Authorities debate, held in the House of Commons on 12th December 1979.

    Mr. Major Asked the Secretary of State for the Environment what consultations he has had with local authority leaders regarding the publication of individual staffing figures, authority by authority.

    Mr. King The Department is discussing with the local authority associations how the central and local government joint manpower watch might be extended to publish centrally manpower figures for all individual local authorities. We have also invited them to discuss what manpower and other figures might be published locally.

    Mr. Major Does my right hon. Friend agree that it is essential that the figures are made publicly available, individual authority by individual authority, so that ratepayers may know which authorities are increasing their staff levels at a time of restraint?

    Mr. King It is extremely important that the House, local authorities, councillors and local electors should have this information. I was unable to reply more fully to an earlier question about the performance of different local authorities in making economies because at present the information is aggregated and it is not possible to form selective judgments. Local electors are unable to form an informed judgment.

  • Mr Major’s Written Question on Closed Shop Agreements – 4 December 1979

    Below is the text of Mr Major’s written Commons question regarding Closed Shop Agreements, made on 4th December 1979.

    Mr. Major asked the Secretary of State for Employment how many closed shop agreements once entered into have subsequently been rescinded by mutual consent of management and work force.

    Mr. Mayhew I regret that the information is not available. Parties to collective agreements are not under any obligation to notify my Department when any collective agreements are entered into or rescinded.

  • Mr Major’s Written Question on Dublin European Council – 4 December 1979

    Below is the text of Mr Major’s written Commons question regarding Dublin European Council, made on 4th December 1979.

    Mr. Major asked the Prime Minister whether she is satisfied with the outcome of the Dublin summit.

    Mr. Renton asked the Prime Minister to what extent she is satisfied with the outcome of the EEC Dublin summit meeting.

    The Prime Minister [Margaret Thatcher] I refer my hon. Friends to the statement I made to the House yesterday

  • Mr Major’s Question Relating to the Council of Foreign Ministers – 28 November 1979

    Below is the text of Mr Major’s Commons question regarding the Council of Foreign Ministers on 28th November 1979.

    37. Mr. William Hamilton asked the Lord Privy Seal when he next intends to meet the Foreign Affairs Ministers of the EEC.

    38. Mr. Major asked the Lord Privy Seal when he next intends to meet his colleagues in the EEC.

    39. Mr. Spearing asked the Lord Privy Seal when he next expects to attend a meeting of the EEC Council of Ministers.

    Sir Ian Gilmour At the Foreign Affairs Council in Brussels on 18 December.

    Mr. Hamilton Can the Lord Privy Seal give an assurance that he will take the initiative and raise the question of international co-ordination of aid to Kampuchea and other countries which are in dire need? The individual efforts of separate Governments seem to be inadequate to meet the challenge.

    Sir I. Gilmour I entirely agree with the hon. Member that this is a desperately serious problem. He will be aware that Britain has done more individually than most other countries. He will also be aware that on 30 October the Community decided to give a further £16 million for famine relief in Cambodia as its contribution to a world-wide effort to save the Cambodian people.

    Mr. Major Will my right hon. Friend convey to his colleagues in Europe, if necessary before his meeting with them in December, that if a suitable settlement to the problem of our net contribution to Europe is not agreed in Dublin, this issue will not go away? This House will not permit it to do so. Will he also advise his colleagues in Europe that if there is protracted wrangling on this issue it will do great damage to the European cause in the United Kingdom, even among its most firm supporters?

    Sir I. Gilmour I agree with my hon. Friend. This issue will be discussed tomorrow and the next day in Dublin by the Prime Minister. It is a most serious issue and if it is not solved it certainly will not go away.

  • Mr Major’s Question Relating to Mortgage Interest Rates – 26 November 1979

    The text of Mr Major’s Commons question regarding mortgage interest rates on 26th November 1979.

    Mr. John Major (Huntingdonshire) I have listened to the debate with an element of growing astonishment, not only because of some of the arguments presented by the Opposition but also – if this is such a desperate and serious charge – the relative lack of fire in what they had to say. Notwithstanding the denials made by the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley) at the outset of the debate that the present situation was partly the responsibility of the previous Government, the course of this debate is the clearest possible evidence that the Opposition are well aware that their public borrowing legacy was a significant contributor to the present high level of interest rates and the rates that mortgagors have to pay.

    No one – from my right hon. Friend the Secretary of State who opened the debate to my hon. Friend who will close it, and every other Member who has spoken – denies that the present level of the minimum lending rate is a disaster for the country and something that we all wish to avoid and hope to see reduced at the earliest opportunity. That is not the matter in dispute.

    I am sorry that the right hon. Member for Sparkbrook is not present. To treat the House, as he did, to a recitation of what the newspapers thought rather than indicate the Opposition’s policy is not to give the debate the merit it deserves in the eyes of many whose mortgage and other borrowing interest rates are so high.

    It is not a cause of dispute that mortgage interest rates are too high and that mortgagors will be hit. Although it has not been mentioned, the construction industry, which is so often the first casualty of high interest rates, may also be hit. That much is self-evident. We can all accept that that is so.

    The hon. Member for Swansea, East (Mr. Anderson) mentioned high interest rates as an element of deliberate Government policy. That is, at best, a half truth. It is true that the Government are prepared to have high interest rates to contain the money supply, because we believe that that is an important component, though not the sum total, in the control of inflation, but it is untrue to say that for some masochistic, self-destructive reason the Government have artificially forced up the level of interest rates. That is absurdly untrue.

    The hon. Member for Truro, (Mr. Penhaligon), whose party is so concerned about this matter that its members seem to have left the Chamber after making their contributions, listed the many sectors of the community that he claimed voted Conservative – I have no reason to disagree with him – that would be badly hit by a high level of interest rates. The hon. Gentleman is right. Many of the supporters of the Government who gave us such a clear majority at the last election will be affected by these rates. So it must surely be self-evident to everyone that the last thing that the Government would do as a deliberate act of policy would be to inflict a high interest rate unless it was for a purpose. That purpose, as we see it, is the control and reduction of future inflation. That is a policy that surely should be shared by all hon. Members.

    We believe that we cannot achieve the containment of inflation, and with it the reduction of interest rates, without, first, a reduction of the public sector borrowing requirement and, secondly, control of the money supply. I believe that most Opposition Members will recognise that as being so, even if, at the moment, for understandable reasons, they are not inclined to admit it. The truth is that mortgage interest rates cannot be divorced either from other interest rates in our domestic economy or, as the hon. Member for Swansea, East stated, when he spoke rather well, from the general level of world interest rates.

    Mr. Stuart Holland (Vauxhall) If the hon. Member for Huntingdonshire (Mr. Major) believes that we cannot insulate mortgage interest rates from interest rates in general, will he explain how in the United States, for example, over most of the post-war period, mortgage companies have effectively done that in relation to Federal Reserve finance and how, on the Continent, mortgage financing effectively operates insulated from the rest of the banking system?

    Mr. Major That is a totally different system of finance, as the hon. Member for Vauxhall (Mr. Holland) is well aware. If he wishes to debate the American and British systems of financing housing, I should be delighted to do so, but not when there are five minutes or so left before the winding-up speeches begin.

    A little earlier, Opposition Members charged that there was a measure of Government incompetence in relation to interest rates rising to their present level. There has been much rather sterile talk about “our interest rates never reached more than 15 per cent. and the Government have produced a minimum lending rate of 17 per cent.” If one considers the position in relation to the rest of the world one cannot, as has been said, isolate oneself from that. I believe that Opposition Members will agree with that.

    At the time when the previous Government imposed a minimum lending rate of 15 per cent., the interest rates in New York were about 5 per cent. At present, when we have a minimum lending rate of 17 per cent., interest rates in New York are 15 per cent. or thereabouts. If relative incompetence is to be a charge on the present Government, they escape from that charge relatively unscathed.

    A moment ago I mentioned the PSBR. That is an element of considerable concern in connection with our domestic levels of inflation and interest rates. Even after what the Opposition have charged as excessive cuts in public expenditure, the PSBR anticipated in the Budget was £.8¼ billion, and it is likely to be a little greater at the outturn of the year. The sheer difficulty of funding that amount is a material factor in connection with the level of interest rates. Surely that is something that the Opposition must recognise as partly attributable to the legacy that we inherited and one that we, in the short term, have been unable to do anything about. If, as I am sure they do, Opposition Members accept that we must contain inflation, they must also accept that we must seek to reduce the PSBR and consequently reduce, over a period of time, the general level of interest rates, not least in the interests of mortgagors.

    I cannot understand how Opposition Members are able, at an early stage of this Parliament, to mount an attack in the terms of the motion without recognising their past contribution to the present situation. Whether Opposition Members like it or not, many owner-occupiers, or would-be owner-occupiers, not least in the council house sector, will see in the attitude of the Opposition a large measure of hypocrisy. Despite many Opposition Members opposing mortgage interest relief and other elements of policy that would lead to greater owner-occupation, they now bring this sort of motion before the House. I hope that the motion will be decisively defeated.

  • Mr Major’s Written Question on Members’ Allowances – 23 November 1979

    Below is the text of Mr Major’s written Commons question regarding Members’ Allowances, made on 23rd November 1979.

    Mr. Major asked the Chancellor of the Duchy of Lancaster when he expects to receive the report of the Top Salaries Review Body on the secretarial allowances of Members of Parliament.

    Mr. St. John-Stevas The delivery of this report is, of course, a matter for the review body. However, I can say that my right hon. Friend the Prime Minister hopes to receive the report in the next few months.

  • Mr Major’s Written Question on the TUC – 22 November 1979

    Below is the text of Mr Major’s written Commons question regarding the TUC, made on 22nd November 1979.

    Mr. Major asked the Prime Minister when next she expects to meet the general secretary of the Trades Union Congress.

    The Prime Minister No dates have been arranged.

  • Mr Major’s Written Question on the Tax and Price Index – 19 November 1979

    Below is the text of Mr Major’s written Commons question regarding the Tax and Price Index, made on 19th November 1979.

    Mr. Major asked the Chancellor of the Exchequer what is the latest figure for the year-on-year increase in the tax and price index.

    Mr. Lawson The tax and price index in October was 14.8 per cent. higher than a year earlier.

  • Mr Major’s Contribution to the Council House Building Debate – 14 November 1979

    Below is the text of Mr Major’s contribution to the Council House Building debate in the House of Commons on 14th November 1979.

    Mr. Norman Atkinson asked the Secretary of State for the Environment how many units of council housing he expects will be started in 1980; how this compares with the average number of starts over the last five years; and if he is satisfied with the progress made.

    Mr. Stanley The average of new house building starts by local authorities in England over the five years 1974 to 1978 was 92,000. The level of house building in 1980, and the progress made, will depend upon the decisions made by each local authority.

    Mr. Atkinson Does the Minister accept that that answer is totally evasive? Does he agree that when the figures are revealed they will represent an absolute disgrace? Is he aware that many thousands of families have no bath and no hot water and have to go through somebody else’s living room to get to the lavatory? Is he also aware that thousands of families do not enjoy normal marital relations because they have no privacy? Families are living in the most dreadful conditions, yet the Minister will announce a deplorable lack of starts next year. He is willing to be complacent and do nothing about that.

    Mr. Stanley The lack of starts is a reflection of the fact that we inherited the lowest house building programme for 30 years when we took office. If the hon. Gentleman wishes to make such criticisms, he should address himself to the performance of the local authority in his constituency. In the last two years of the previous Labour Government Haringey underspent by £4.4 million.

    Mr. Michael Morris Instead of worrying too much about the absolute level of council housing, will my hon. Friend address himself to the problems of London boroughs such as Islington, Haringey, Lambeth and Camden, with their thousands of council properties that remain empty? It seems that no progress is being made to deal with that situation.

    Mr. Stanley I agree with my hon. Friend that it is imperative that local authorities make the best use that they can of their existing housing stocks. I deplore the fact that there are some high levels of vacancies in certain London authorities.

    Mr. Dubs When considering next year’s starts, will the Minister distinguish between Conservative and Labour controlled local authorities? If he does that he will note that the tardiness in new housing starts comes mainly from Conservative-controlled local authorities, such as Wandsworth in my constituency.

    Mr. Stanley The underspend is similar between authorities of different political complexions.

    Mr. Major Would it not be more cost-effective to divert scarce resources into improvement and renovation rather than apply them to the building of council houses?

    Mr. Stanley As my hon. Friend will know, one of the most unfortunate developments during the past five years has been the serious decline in the improvement programme. As a result of the new provisions that we look forward to bringing to the House on improvement and repairs, we hope to be able to reverse that trend.

    Mr. Freeson I revert to the original question. Is it not correct that the figures published in the recent public expenditure White Paper are based on an assumption that there will be about 45,000 to 50,000 housing starts by local authorities? If that is correct, does not the hon. Gentleman consider that disgraceful as an intended policy?

    Mr. Stanley One of the important changes that we shall be making, which will, I hope, help to reduce the appalling levels of underspend that took place when the right hon. Gentleman was a member of the previous Labour Government, will be to alter the present system of housing investment programme allocations so that local authorities have a single block, which will enable them, I hope, to make the best use of the allocations.

  • Mr Major’s Written Question on Rate Support Grant – 14 November 1979

    Below is the text of Mr Major’s written Commons question regarding the Rate Support Grant, made on 14th November 1979.

    Mr. Major asked the Secretary of State for the Environment what consultations he has held concerning the reform of the rate support grant.

    Mr. Heseltine We are, of course, constantly in touch with those chiefly concerned about the defects of the present system and the future development of rate support grant, but I have held no formal consultations.