The Rt. Hon. Sir John Major KG CH

Tag: 1989

  • Mr Major’s Written Parliamentary Answer on Local Authority Income – 18 April 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Local Authority Income on 18th April 1989.

    Mr. Allen To ask the Chancellor of the Exchequer to what extent his Department has studied the possibility of replacing locally collected local authority income with a hypothecated amount within the income tax system; and if he will list such research or studies which have taken place over the last 10 years.

    Mr. Major This approach of “assigned revenues” has been considered and rejected in successive studies of local government finance, most recently in the 1983 White Paper “Rates: Proposals for rate limitation and reform of the rating system” (Cmnd. 9008). It is not the practice of the Government to hypothecate revenues from a particular tax to particular areas of expenditure.

  • Mr Major’s Written Parliamentary Answer on Interest Rates – 10 April 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Interest Rates on 10th April 1989.

    Mr. Cox To ask the Chancellor of the Exchequer what have been the effects on British industry of increased interest rates over the last six months.

    Mr. Major Inflation is the greatest threat to corporate prosperity. British industry will greatly benefit from the Government’s firm anti-inflationary policy.

  • Mr Major’s Written Parliamentary Answer on Productivity – 6 April 1989

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

    Mr. Wood To ask the Chancellor of the Exchequer what has been the percentage increase in British manufacturing productivity since 1979.

    Mr. William Powell To ask the Chancellor of the Exchequer what has been the percentage increase in British manufacturing productivity since 1979.

    Dr. Twinn To ask the Chancellor of the Exchequer what has been the percentage increase in British manufacturing productivity since 1979.

    Mr. Stevens To ask the Chancellor of the Exchequer what has been the percentage increase in British manufacturing productivity since 1979.

    Mr. Major Output per head in United Kingdom manufacturing industry in the three months up to January 1989 was 48.8 per cent. higher than its average level in 1979, an average annual growth rate of 4.3 per cent.252W

    Mr. John Marshall To ask the Chancellor of the Exchequer if he will make a statement about the trends in productivity in British industry.

    Mr. Major Output per head in the manufacturing sector in the three months up to January 1989 was 55 per cent. higher than its average level in 1980. This is equivalent to an annual average growth rate of 5.3 per cent. significantly higher than the 1.6 per cent. growth achieved in the 1970s and 3 per cent. a year in the 1960s. Since 1980, United Kingdom manufacturing productivity growth has been higher than in any other major industrialised country.

  • Mr Major’s Written Parliamentary Answer on Government Expenditure – 6 April 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Government Expenditure on 6th April 1989.

    Mr. Baldry To ask the Chancellor of the Exchequer what has been the fall in general Government expenditure, excluding privatisation proceeds, as a percentage of gross domestic product since 1982–83.

    Mr. Hayes To ask the Chancellor of the Exchequer what has been the fall in general Government expenditure, excluding privatisation proceeds, as a percentage of gross domestic product since 1982–83.

    Mr. Hague To ask the Chancellor of the Exchequer what has been the fall in general Government expenditure, excluding privatisation proceeds, as a percentage of gross domestic product since 1982–83.

    Mr. Major The Financial Statement and Budget Report gave a figure of 39½ per cent. for the ratio of general Government expenditure (excluding privatisation proceeds) to gross domestic product in 1988–89. The corresponding figure for 1982–83 was 46¾ per cent.

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

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

    Mr. George Howarth To ask the Chancellor of the Exchequer which countries in the European Economic Community have a larger balance of payments deficit as a percentage of gross domestic product than the United Kingdom.

    Mr. Robert Hughes To ask the Chancellor of the Exchequer which countries in the EEC have a larger balance of payments deficit as a percentage of gross domestic product than the United Kingdom.

    Mr. Hoyle To ask the Chancellor of the Exchequer which countries in the EEC have a larger balance of payments deficit as a percentage of gross domestic product than the United Kingdom.

    Mr. Major On the basis of published figures, none.

    Mr. Frank Field To ask the Chancellor of the Exchequer if he will estimate when the balance of payments will return to surplus.

    Mr. Flynn To ask the Chancellor of the Exchequer if he will estimate when the balance of payments will return to surplus.

    Mr. Fisher To ask the Chancellor of the Exchequer if he will estimate when the balance of payments will return to surplus.

    Mr. Flannery To ask the Chancellor of the Exchequer if he will estimate when the balance of payments will return to surplus.

    Mr. Major The Financial Statement and Budget Report for 1989–90 published on 14 March provided forecasts of the balance of payments for 1989 and the first half of 1990. The balance of payments on current account is expected to remain in deficit over this period. Forecasts for later years are not published.

    Ms. Harman To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments deficit.

    Mr. Win Griffiths To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments deficit.

    Mr. Grocott To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments deficit.

    Ms. Gordon To ask the Chancellor of the Exchequer if he will make a statement on the current balance of payments deficit.

    Mr. Major I refer the hon. Members to the recently published Financial Statement and Budget Report.

    Mr. Galloway To ask the Chancellor of the Exchequer when he expects the balance of payments deficit will begin to fall as a percentage of gross domestic product.

    Mr. Foulkes To ask the Chancellor of the Exchequer when he expects the balance of payments deficit will begin to fall as a percentage of gross domestic product.

    Mr. Major I refer the hon. Members to the reply that my right hon. Friend the Chancellor of the Exchequer gave earlier today to the hon. Member for Norwich, South (Mr. Garrett).

  • Mr Major’s Written Parliamentary Answer on Budget (Representations) – 6 April 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Budget (Representations) on 6th April 1989.

    Mr. Sumberg To ask the Chancellor of the Exchequer what representations he has received from industrial organisations in connection with his recent Budget statement.

    Mr. Major The proposals in my right hon. Friend’s Budget have been widely welcomed.

  • Mr Major’s Parliamentary Answer on Pensioners (Income) – 6 April 1989

    Below is the text of Mr Major’s response on Pensioners (Income) , made on 6th April 1989 in the House of Commons.

    Sir Trevor Skeet To ask the Chancellor of the Exchequer what has been the change in the post-tax income of pensioners since 1979.

    Mr. Major The average post-tax incomes of pensioners increased by 23 per cent. in real terms between 1979 and 1986.

    Sir Trevor Skeet I welcome those figures and the fact that the Chancellor raised income support substantially in the Budget for the over-75s, but will my right hon. Friend bear in mind the plight of pensioners who are on only the single state pension and have no savings?

    Mr. Major I understand my hon. Friend’s concern. These days it is misleading to assume that most pensioners rely solely on the state retirement pension. At present about 50 per cent. of all pensioners also have an occupational pension and that proportion rises to about 70 per cent. of those who retired in the past five years. Those who do not have an occupational pension could either receive an earnings-related supplement to their state pension or be entitled to income support and housing benefit additions.

    Mr. Shore How much of the increase about which the Chief Secretary told us was due to reductions in income tax and how much was due to the secular increase in occupational pensions that has been taking place year after year?

    Mr. Major To give the right hon. Gentleman the precise figure I shall need to write to him.

    Mr. Charles Wardle Have not people who retired before the introduction of the state earnings-related pension scheme in 1978, without an occupational pension of their own, fared less well than the average? Therefore, will my right hon. Friend consider including in his welcome changes to the higher level of age allowance people of 70 and over to cater for all women who retired at 60 prior to 1978?

    Mr. Major The principal problem that my hon. Friend outlines has been dealt with in the package for poorer pensioners that my right hon. Friend the Chancellor announced some months ago. It comes into effect from October this year and will provide an extra £2.50 for single pensioners who qualify and £3.50 for couples.

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

    Below is the text of Mr Major’s response on Balance of Payments, made on 6th April 1989 in the House of Commons.

    Dr. Godman To ask the Chancellor of the Exchequer what representations he has received on his Budget forecast for the balance of payments in 1989 and 1990.

    The Chief Secretary to the Treasury (Mr. John Major) None, Sir.

    Dr. Godman After learning last week’s figures, does the Chief Secretary’s right hon. Friend, the Chancellor of the Exchequer, now predict that the balance of payments deficit for this year will rise or fall?

    Mr. Major I see no reason to change the estimate that my right hon. Friend gave some time ago.

    Mr. Nicholas Winterton Bearing in mind the answer given by my right hon. Friend the Chancellor to the last questions, does my right hon. Friend the Chief Secretary accept that if interest rates were lower, investment in this country would be higher and that our balance of payments would improve? Does my right hon. Friend agree that interest rates have affected, and will affect, investment, and that investment will have a direct impact on our balance of payments?

    Mr. Major What would certainly have a very direct effect on investment would be a failure to take the action necessary to bring down inflation – and that is the purpose of the current short-term interest rate policy. One of the attractive aspects of investment over the past year or two is that so much of it has been made out of retained profits, whereas in previous years and under previous Governments, profits were not there to provide for investment.

    Mr. John Smith Has the Chief Secretary seen the international monetary fund’s prediction that the balance of payments deficit for 1989 will reach a record £17 billion? As the Chancellor got it so badly wrong this year, why should we believe his prediction this year as opposed to that of the IMF?

    Mr. Major The right hon. and learned Gentleman will recall that the IMF was equally inaccurate last year, as were most other forecasters. The right hon. and learned Gentleman neglects to mention that the IMF report also described the Government’s policies as being entirely appropriate, and it confirmed that our strong fiscal policies support monetary policy and strengthen confidence.

    Mr. Beith Would the Government regard it as an achievement if, instead of being £10 billion out with their balance of payments forecast, this year they were only about £6 billion out? Will the Chief Secretary explain why he believes that exports will rise more than twice as fast as imports in order to make his promise come true?

    Mr. Major There is no doubt that in recent years exports have been performing extremely well. The reasons why we believe that export performance will continue include the degree of investment and the improved supply-side performance.

    Mr. Sumberg As we listen to the views of Opposition Members and hear their policies unfolded, is it not becoming clearer day by day that the Labour party remains the party of high taxation and of higher spending than we can afford, and that it wants to return to the days of public borrowing and public debt?

    Mr. Major My hon. Friend describes the situation with precise accuracy.

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

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

    Mr. Paice To ask the Chancellor of the Exchequer what is his latest information on the investment intentions of British manufacturing industry.

    Mr. Soames To ask the Chancellor of the Exchequer what is his latest information on the investment intentions of British manufacturing industry.

    Mr. Major I refer my hon. Friends to the reply that I gave earlier today to my hon. Friend the Member for Hereford (Mr. Shepherd).

  • Mr Major’s Written Parliamentary Answer on Industrial Investment – 6 April 1989

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

    Mr. Strang To ask the Chancellor of the Exchequer what is his estimate of the level of industrial investment in the last year; and what change he expects in investment in the current year.

    Mr. Major Total business investment in 1988 was £49.8 billion at 1985 prices, its highest level ever, as a percentage of GDP. It was forecast in the Financial Statement and Budget Report to increase yet further, by 8 per cent. in 1989.