The Rt. Hon. Sir John Major KG CH

Tag: 1989

  • Mr Major’s Parliamentary Answer on Balance of Payments – 26 January 1989

    Below is the text of Mr Major’s response on Balance of Payments, made on 26th January 1989 in the House of Commons.

    Mr. McLeish To ask the Chancellor of the Exchequer if he will state the current balance of payments as a proportion of gross domestic product.

    Dr. Godman To ask the Chancellor of the Exchequer what is the current balance of payments as a proportion of gross domestic product.

    Mr. Tom Clarke To ask the Chancellor of the Exchequer if he will state the current balance of payments as a proportion of gross domestic profit.

    Mr. Major In the latest 12 months for which figures are available the current account deficit as a proportion of gross domestic product was 2½ per cent.

    Mr. Strang To ask the Chancellor of the Exchequer if he will list his policies which are aimed at reducing the balance of payments deficit; and if he will make a statement.

    Mr. Major The rise in the current account deficit has primarily reflected the strength of domestic demand. The Government responded appropriately by tightening monetary policy and the effects of this are already beginning to bite, particularly in the housing market and in the retail sector. However, as my right hon. Friend the Chancellor has made clear, the current account deficit is likely to be one of the last indicators to respond.

    Mr. Battle To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom’s balance of payments.

    Mr. Cohen To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom’s balance of payments.

    Mr. McFall To ask the Chancellor of the Exchequer if he will give his latest forecast for the United Kingdom’s balance of payments.

    Mr. Major The Autumn Statement forecast a current account deficit this year of £11 billion. There will be a new forecast published on Budget day in the usual way.

  • Mr Major’s Parliamentary Answer on Consumer Credit – 26 January 1989

    Below is the text of Mr Major’s response on Consumer Credit, made on 26th January 1989 in the House of Commons.

    Mr. Beith To ask the Chancellor of the Exchequer what estimate he has made of the impact of his interest rate policy on consumer credit.

    Mr. Major By increasing the cost of credit, rises in interest rates exert downward pressure on the growth of consumer credit.

    Mr. Beith Are Treasury Ministers sufficiently confident of the success of their policies to tell us that they will not need to raise interest rates further? Have they looked at the indices that they now use to argue that they have got control of the situation? Last year, those indices were showing even more clearly that there would not be a credit boom. If Ministers believed them then, that may be the explanation for what went wrong with the Budget strategy. Will Treasury Ministers consider alternative measures that are available to broaden the attack on inflation without going to the credit control measures favoured by the right hon. and learned Member for Monklands, East (Mr. Smith), whose return we so much welcome?

    Mr. Major No Minister can give the hon. Gentleman the firm assertion which he asked for at the beginning of his question. The problem at the moment is excess demand. The way to control the growth of credit is to increase its cost. That is what we have done. We are confident that it can and will work.

    Mr. Neil Hamilton Will my right hon. Friend remind the House that last spring Opposition Members were calling for even faster reductions in interest rates which would have fuelled the consumer boom even more? Now they are claiming the benefit of hindsight and they say that we were moving too fast. Their economic policy does not add up.

    Mr. Major I certainly recall that. I also recall that Opposition Members were asking for more public spending both last autumn and earlier this year. That would not have helped, either.

  • Mr Major’s Parliamentary Answer on Investment – 26 January 1989

    Below is the text of Mr Major’s response on Investment, made on 26th January 1989 in the House of Commons.

    Mr. Cran To ask the Chancellor of the Exchequer what was the total level of investment in the United Kingdom in 1988 and 1987; and what was the change in the level of consumption over the same period.

    The Chief Secretary to the Treasury (Mr. John Major) Between 1987 and 1988 investment is expected to have grown by at least 12 per cent., twice as fast as consumption.

    Mr. Cran Does my right hon. Friend agree that business investment in the years 1986–88 rose by the almost unprecedented figure of 20 per cent. in real terms, and exceeded that of the United States, Germany and France? Does he agree that that massive investment programme confirms the economic well-being of the United Kingdom, even in terms that the economic illiterates of the Opposition can understand?

    Mr. Major I am not sure about my hon. Friend’s last point, but I can certainly confirm his first point. Since 1981, business investment in the United Kingdom has grown faster than in any other major industrialised country and any country in the European Community.

    Mr. Foulkes Will the Chief Secretary come down to earth? Is he aware that the National Savings Bank has introduced regulations so that the minimum investment is now £5? That is causing great concern among pensioners and Age Concern Scotland as many pensioners invest £1, £2 or £3 regularly and will be unable to do so when the regulation comes into force. Will the Chief Secretary intervene and see whether some action can be taken to reverse that regrettable decision?

    Mr. Major I hear and understand what the hon. Gentleman says. I have no direct response to his point except that he needs to bear in mind that throughout the economy as a whole investment is growing and that in our judgment, and in the judgment of the independent surveys, it will continue to grow. That is thoroughly desirable.

    Sir William Clark Does my right hon. Friend agree that the Opposition’s criticism of the economic handling of our country is rather hypocritical when one bears in mind that under their regime we were at the bottom of every economic league not only in Europe but in the world and now we are at the top?

    Mr. Major As usual, my hon. Friend is entirely right. These are painful waters for the Opposition and I hesitate to dwell on them any longer.

  • Mr Major’s Written Parliamentary Answer on Employment – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Employment on 26th January 1989.

    Mr. David Porter To ask the Chancellor of the Exchequer what has been the growth of (a) self-employment and (b) part-time employment in the United Kingdom since 1979.

    Mr. Couchman To ask the Chancellor of the Exchequer what has been the growth of (a) self-employment and (b) part-time employment in the United Kingdom since 1979.

    Mr. Major Between June 1979 and September 1988 the number of self-employed people in Great Britain rose by 60 per cent. to nearly 3 million. Over the same period, the part-time work force in employment rose by 30 per cent. to over 6 million.

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

    Below is the text of Mr Major’s written Parliamentary Answer on Manufacturing Investment on 26th January 1989.

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

    Mr. Brandon-Bravo To ask the Chancellor of the Exchequer what is his latest information on the investment intentions of manufacturing industry.

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

  • Mr Major’s Written Parliamentary Answer on Gross Domestic Product – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Gross Domestic Product on 26th January 1989.

    Mr. Moss To ask the Chancellor of the Exchequer what has been the increase in the output measure of gross domestic product for the latest 12-month period.

    Mr. Bright To ask the Chancellor of the Exchequer what has been the increase in the output measure of gross domestic product for the latest 12-month period.

    Mr. Major The output measure of gross domestic product is estimated to have grown by 4½ per cent. in the year to the third quarter of 1988.

  • Mr Major’s Written Parliamentary Answer on Northern Ireland (Revenue Contributions) – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Northern Ireland (Revenue Contributions) on 26th January 1989.

    Rev. Martin Smyth To ask the Chancellor of the Exchequer what information he has as to the contribution from Northern Ireland to United Kingdom exchequer revenue; and if he will make a statement.

    Mr. Major I assume that the hon. Member is referring to Northern Ireland’s attributed share of taxation. The attributed share in 1985–86 (the last year for which there are full figures) was £1,873 million.

  • Mr Major’s Written Parliamentary Answer on Economic Prospects – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Economic Prospects on 26th January 1989.

    Mr. Leigh To ask the Chancellor of the Exchequer if he will make a statement on the economic prospects for the United Kingdom for 1989.

    Mr. Major A revised economic forecast for 1989 will be published at Budget time.

  • Mr Major’s Written Parliamentary Answer on Grants – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on Grants on 26th January 1989.

    Mr. Gill To ask the Chancellor of the Exchequer what has been the total cost to the Exchequer of all grants in aid to trade, industry and commerce in the financial year 1987–88.

    Mr. Major The table below shows the 1987–88 estimated outturn for grants and subsidies included under the trade and industry part of the trade, industry, energy and employment section of table 2.7 (Functional analysis of United Kingdom public expenditure) of volume I of “The Government’s Expenditure Plans 1988–89 to 1990–91” (Cm 288). The figures cover grants and subsidies to both public corporations and the private sector. Revised out-turn data for public expenditure in 1987–88 will be given in the 1989 public expenditure White Paper which is due to be published in the next few days. I shall write to my hon. Friend to update the figures given below shortly.

    Expenditure (1) on certain grants and subsidies to trade, industry and commerce (2)

    Grants Subsidies Total £ million
    Regional and general industrial support 455.0 242.2 697.1
    Scientific and technological assistance 3.2 0.4 3.6
    Support for aerospace, shipbuilding, coal, steel and vehicle manufacture 316.2 46.9 363.1
    Trade 9.0 151.2 160.2
    783.3 440.7 1,223.9

    (1) Estimated outturn figures.
    (2) Covers the trade and industry part of the trade, industry, energy and employment section of Table 2.7 of Volume I of Cm 288.

  • Mr Major’s Written Parliamentary Answer on New Businesses – 26 January 1989

    Below is the text of Mr Major’s written Parliamentary Answer on New Businesses on 26th January 1989.

    Mr. Cash To ask the the Chancellor of the Exchequer what has been the average weekly rate of business start-ups in net terms in 1988.

    Mr. Stevens To ask the Chancellor of the Exchequer what has been the average weekly rate of business start-ups in net terms in 1988.

    Mr. Nicholas Baker To ask the Chancellor of the Exchequer what has been the average weekly rate of business start-ups in net terms in 1988.

    Mr. Major In 1987, the latest year for which figures have been published by the Department of Employment, the net increase in the number of businesses registered for VAT was 45,000, an average of approaching 900 a week. Indications are that the rate of increase in 1988 is even faster. The number of VAT registrations and de-registrations processed by Customs and Excise during 1988 indicate a net increase of over 1,200 a week. Department of Employment figures for 1988 will be available in the summer.