The Rt. Hon. Sir John Major KG CH

Category: Chief Secretary (1987-1989)

  • Mr Major’s Parliamentary Answer on Economic Growth – 8 June 1989

    Below is the text of Mr Major’s response on Economic Growth on 8th June 1989 in the House of Commons.

    Mr. Oppenheim To ask the Chancellor of the Exchequer what was the rate of economic growth in the latest year for which figures are available.

    Mr. Major Gross domestic product is estimated to have grown by 41/2 per cent. in 1988.

    Mr. Oppenheim Is it true that, whereas a great deal of investment in manufacturing in the 1970s was directed by politicians into uneconomic enterprises or into uncommercial capacity, it is now being directed by private industry into proper jobs and proper industry? Perhaps that is why, whereas under the last Labour Government manufacturing output fell, it has risen sharply under this Government.

    Mr. Major That is right, and it is why we are now well into the eighth successful year of sustained growth of more than 3 per cent. During the past seven years there has been a combination of strong and steady growth that has not been matched since the war.

    Mr. Campbell-Savours Would there not be a substantial increase in growth if the Government adopted a positive policy of import substitution? Will the Minister reflect on my modest contribution to last night’s debate, when I set out a scheme for private sector support for industry that would lead to a substantial number of jobs, cost the state very little and, to some extent, reduce the trade deficit? Will the Minister read what I said last night and, perhaps, drop me a line about it?

    Mr. Major I always read carefully what the hon. Gentleman has said, although some of the ideas that he advanced yesterday were tried not wholly successfully in earlier years. I welcome the efforts many industries are now making to provide goods to be sold at home at competitive rates as an alternative to imports. I hope that they will continue to do that.

  • Mr Major’s Parliamentary Answer on Manufacturing Output – 8 June 1989

    Below is the text of Mr Major’s response on Manufacturing Output on 8th June 1989 in the House of Commons.

    Mr. Ward To ask the Chancellor of the Exchequer what has been the annual rate of growth of manufacturing output over the last two years.

    Mr. Major In the two years to the first quarter of this year, manufacturing output grew at an average annual rate of 7.1 per cent.

    Mr. Ward Does my right hon. Friend agree that the news about investment in manufacturing that we have just heard is good news for tomorrow? However, the answer that he has just given indicates that the supply side boom, which the Government have been working for, is with us today.

    Mr. Major My hon. Friend is right. The strength of manufacturing output shows clearly that the supply side changes of recent years are working. My hon. Friend will be pleased to know that the levels of investment that we have seen recently will ensure that that continues.

    Mr. Mullin In view of the lavish claims being made about the level of manufacturing investment, will the Chancellor have another go at explaining the figures that I put to him yesterday – that according to the latest figures from the Department of Trade and Industry, manufacturing investment in the north-east stands now at 53 per cent. of what it did in 1979?

    Mr. Major That relates to manufacturing output. In fact, manufacturing investment has risen by 14½ per cent. in the last year to a record level.

  • Mr Major’s Parliamentary Answer on Labour Statistics – 8 June 1989

    Below is the text of Mr Major’s response on Labour Statistics on 8th June 1989 in the House of Commons.

    Mr. Brazier To ask the Chancellor of the Exchequer for how many months adult unemployment has fallen continuously in the United Kingdom.

    Mr. Major Unemployment in the United Kingdom has fallen for 33 months in succession.

    Mr. Brazier Does my right hon. Friend agree that unemployment has fallen in every region, especially among the long-term unemployed? In the past 10 years, we have moved from above the EEC average to well below it. Does he agree that there can be no greater testimony to the performance of the Government on unemployment than the silence of the Opposition on the subject yesterday?

    Mr. Major There was certainly a deafening silence on the Opposition Front Bench yesterday. My hon. Friend is entirely correct. The fast falls in the west midlands, Wales and Yorkshire are especially welcome. There have been remarkable reductions in long-term unemployment in every region.

    Mr. Heffer It would have been remarkable if unemployment had not fallen, given that it had risen to such high levels under this Government since 1979. Is it not clear that despite the falls in unemployment, which I do not deny for one moment, under the capitalist system unemployment comes down just as it goes up, but the Government have not achieved the lower levels of unemployment which existed under Labour? The levels are still far higher than they were when the Government took office.

    Mr. Major The hon. Gentleman overlooks a point which is material to his concern – that there are more people in work today than there have ever been. The dramatic falls in unemployment have exceeded even the most optimistic forecasts two years ago – certainly those of the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley), who forecast at the general election that unemployment would increase, since when it has fallen by over 1 million.

    Mr. Waller My right hon. Friend said that unemployment had fallen especially fast in areas previously regarded as the more deprived parts of the country. Does he agree that this shows that those who talked in the past of the inevitability of the north-south divide were somewhat misguided and that the north has qualities and reservoirs of skill which should attract many people to the north?

    Mr. Major I agree with my hon. Friend. On the many visits that I have made to the north in recent months, I have been extremely impressed by the way in which the economy is growing and by the confidence and investment in industry. It is clear that the best regional policy is the sustained economic growth that we have experienced in the past few years.

    Mr. John D. Taylor Does the Minister expect unemployment to continue to fall for the rest of this year?

    Mr. Major We never make predictions about unemployment. We declined to do so last year, since when it has continued to fall dramatically. As I reminded the House a moment ago when quoting the right hon. Member for Sparkbrook, predictions about unemployment are unwise.

    Mr. Andrew MacKay As the spectre of unemployment fades as a result of the Government’s economic policies, does my right hon. Friend agree that industry faces a new problem – skill shortages? Are Ministers addressing the problem to ensure that more skills are developed and fresh people brought into the labour force, including women?

    Mr. Major That is an important point. As my hon. Friend will know from the public expenditure round last year, substantial additional resources have been made available for skill training. I hope that as industry is increasingly profitable it will devote more of its resources to training present and future workers.

  • Mr Major’s Parliamentary Answer on Pay Rises – 8 June 1989

    Below is the text of Mr Major’s response on Pay Rises made on 8th June 1989 in the House of Commons.

    Mr. Cohen To ask the Chancellor of the Exchequer what information he has on the pay rises awarded to directors in the last period for which figures are available, if he will indicate the economic effect of all workers having a similar pay rise this year; and if he will make a statement.

    The Chief Secretary to the Treasury (Mr. John Major) Pay is for the parties involved to agree and it is not for the Government to intervene.

    Mr. Cohen What a cop-out answer! How does the Chancellor justify an average increase of 23 per cent. for top directors when inflation is 8 per cent. and workers are having to accept much less than that? How does the Chief Secretary justify a 20 per cent. increase for ICI bosses, 34 per cent. for Unilever’s boss, 43 per cent. for Barclay’s boss, 47 per cent. for Cadbury’s boss, 48 per cent. for BP’s bosses, 58 per cent. for Sun Alliance bosses, 100 per cent. for Legal and General’s bosses and 100 per cent. for P and O’s? Is not the reason that the Conservatives and those directors have the same incestuous class interest? Regardless of the economic effect, there is Government condemnation for workers’ pay rises and a free-for-all for top directors.

    Mr. Major I am bound to say that I think that the hon. Gentleman has a rather limited view of directors. Contrary to his vivid expression, the vast majority are able, efficient and effective, and we need the best management. Notwithstanding that, I have never justified wage or salary increases that are unjustifiable, and I do not do so now. It is not, however, for me to determine what is or is not justifiable in that respect.

    Mr. Bill Walker Does my right hon. Friend agree that there are only two resources in any company – money and people – and that it is the way in which those resources are managed and deployed that results in profitability or loss in operation? It is only right that those who create the profits should, as a result of the shareholders’ wishes, be properly remunerated.

    Mr. Major My hon. Friend makes his point extremely clearly, but I repeat that I am not directly responsible for or concerned with the matter. Pay is a matter for those who negotiate and determine it, and it is not for the Government to intervene.

  • Mr Major’s Written Parliamentary Answer on Manufacturing Investment – 6 June 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Manufacturing Investment on 6th June 1989.

    Mr. Pike To ask the Chancellor of the Exchequer what was the level of manufacturing investment in the United Kingdom in 1979 and 1988.

    Mr. Major The level of manufacturing investment in the United Kingdom in 1985 prices was £11,157 million in 1979 and £11,586 million in 1988.

  • Mr Major’s Written Parliamentary Answer on Exports – 6 June 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Exports on 6th June 1989.

    Mr. Butterfill To ask the Chancellor of the Exchequer what estimate he has made for the growth of exports for 1989 as against 1988.

    Mr. Major I refer my hon. Friend to the reply that I gave to the hon. Member for Bootle (Mr. Roberts) on 4 May at columns 203–4.

  • Mr Major’s Written Parliamentary Answer on Balance of Trade – 6 June 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Balance of Trade on 6th June 1989.

    Mr. Tony Lloyd To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in visible goods in 1989.

    Mr. Harry Barnes To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in visible goods in 1989.

    Mr. Grocott To ask the Chancellor of the Exchequer what is his latest forecast of the balance of trade in visible goods in 1989.

    Mr. Major The “Financial Statement and Budget Report” for 1989–90 shows a forecast deficit for visible trade in 1989 of £21.5 billion.

  • Mr Major’s Written Parliamentary Answer on Balance of Payments – 6 June 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Balance of Payments on 6th June 1989.

    Mr. Morgan To ask the Chancellor of the Exchequer what is his latest forecast for the United Kingdom balance of payments for 1989.

    Mr. Major The “Financial Statement and Budget Report” for 1989–90 shows a forecast deficit for the current account of the balance of payments in 1989 of £14.5 billion.

  • Mr Major’s Comments on Labour’s Economic Policies – 27 May 1989

    Below is the text of the press release, 695/89, issued by Conservative Central Office on 27 May 1989. It contains the text of a message sent by Mr Major to the Huntingdon Conservative Association.

    CHIEF SECRETARY TO THE TREASURY:

    Ask Mr Kinnock a serious question about his economic policies and you do not get an answer, you get an explosion.

    After two years of careful coaching, he still cannot tell us how he would control inflation. He does not believe that interest rates are the answer. He prefers credit controls. But he cannot explain how he would make them work. And his own Shadow Chancellor has as good as admitted that they would not.

    So how would he control inflation?

    He claims to be a born-again European. But his policies would bring him into direct conflict with the Community. He knows that people would dodge his credit controls by borrowing from foreign banks. So he would need exchange controls to back them up. But exchange controls are illegal throughout the European Community from next year.

    So how does he reconcile his commitment to Europe with his interventionist economic policy?

    He seems to want to take direct action against imports, perhaps through deposits, perhaps by controls. But unfortunately he went off the air before he could finalise his answer. No doubt he will tell us.

    After two years of reviewing his economic policies, you might expect him to have produced a properly costed programme. But not a bit of it.

    He does not say how much his extravagant spending pledges would cost.

    And he is no more willing to tell us how many families would pay more under Labour’s plans for higher rates of income tax. Tax payers are entitled to an account of what their tax rates would be under a Labour Government. When will they be told?

    One question repeated four times by Mr Naughtie produced a memorable explosion. What will four questions produce, I wonder?

  • Mr Major’s Written Parliamentary Answer on Manufacturing Investment – 26 May 1989

    Below is the text of the Written Parliamentary Answer on Manufacturing Investment from 26 May 1989.

    Mr. Jack To ask the Chancellor of the Exchequer what is the latest official projection for the growth of manufacturing investment in 1989.

    Mr. Major The latest DTI investment intentions survey published in December projected manufacturing investment in constant prices to rise by 11 per cent. in 1989 on a year earlier. The latest CBI quarterly trends survey published in April confirms this buoyant outlook.