Below is the text of the maiden speech made by George Young, the then Conservative MP for Ealing Acton, in the House of Commons on 18 March 1974.
Due to the operations of the Boundary Commission, I have no fewer than three immediate predecessors to whom I must pay tribute in my maiden speech. One of them—Brian Batsford, the former Member for Ealing, South—did not seek re-election. The second—Nigel Spearing, the former Member for Acton—sought re-election and, after a vigorous contest with me at the hustings came second. The third—Mr. Molloy—sought re-election at a modified constituency, Ealing, North, and was duly returned. It does not need me to remind the House of his ceaseless efforts on behalf of those of his former constituents whom I now represent. He may not be very sorry to lose them, because he did not get many votes from that section of the constituency, but a lot of them are sorry to lose him, as he was a tireless and often pugnacious fighter on their behalf.
My predecessor in Acton—Nigel Spearing—earned the high regard and respect of his constituents in the three years in which he represented them. The closeness of the result doubtless reflected the local good will which he accumulated. He is by profession a school teacher, and in view of the current shortage of members of that profession in London, I hope that I have performed some small public service by enabling him to return to his previous vocation.
Brian Batsford represented Ealing, South for 16 years. He was a highly respected and much loved local Member who will be sadly missed. I am very grateful to him for the advice and encouragement which he gave me when I was a candidate.
I am honoured to tread in the collective footsteps of those three men.
I wish to speak briefly about my constituency. It is an amalgam of a highly industrialised area—Acton—with a large section of Ealing, a predominantly residential area with a major shopping centre at Ealing Broadway. Acton has the distinction of having more railway stations to its name than any other place in the country—North Acton, South Acton, East Acton, West Acton, Acton Central, Acton Main Line and Acton Town. It is, none the less, extraordinarily difficult to travel around it by public transport.
As with other industrial areas in London, Acton is suffering from the progressive rundown of industry. Successive Governments have taken the view that London has an inexhaustible supply of industrial firms which can be exported to other parts of the country. As a result, when firms in London wish to expand or modernise, they find that the planning and fiscal incentives to do so are almost irresistible. Consequently, there is a danger of London’s being left with the most inefficient and least modernised firms in the country. If this state of affairs is allowed to continue, it will undermine the economic base of the capital and adversely affect the employment prospects of those who live and work in it.
The Ealing section of the constituency is a pleasant residential area. Its main problem is a disease called planning blight, for which there appears to be no known cure and which can last for 25 years. Indeed, I had some pleasure in tracing back one set of road proposals to the last Liberal Government.
I am honoured to represent this new constituency and hope that it will be many decades before the House has to listen to another maiden speech from the Member for Ealing, Acton.
I wish to speak briefly on one matter concerning the economy, namely, the role of the public sector. Until recently I was an economic adviser in one of the largest nationalised industries—the Post Office Corporation. I was able to observe at first hand the effects of price restraint in this section of the economy. At a time of rising prices any Government will seek to use its influence to keep down prices, and it always does so in the nationalised sector because that is where it has most influence.
Historically, the nationalised industries have been the first to respond—not always willingly—to the call for price restraint. However, we should be under no illusion about the danger of this course of action if allowed to go on for long. First, many of the nationalised industries supply energy—the Central Electricity Generating Board, the National Coal Board and the Gas Council. At a time when the country must economise in its consumption of energy, it is indefensible that energy should be available to private consumer and industry alike at a price which is less than its true cost.
Secondly, pegging prices at low levels artificially increases demand, and in response to this the nationalised industries have put forward ambitious investment programmes. Many of the nationalised industries are capital-intensive and large sums of capital money are needed to increase their output. The two largest nationalised industries plan to spend £8,000 million in the next five years. If their investment plans are based on incorrect assessments of demand there will be a serious misuse of this country’s investment resources.
Morale in the nationalised industries falls if there is continued price restraint leading to substantial losses. Most of the nationalised industries are, in the normal sense, technically bankrupt and it is somewhat dispiriting for management in the nationalised industries to know this and to have to put up with it. Furthermore, the knowledge that the taxpayer will always foot the bill deprives management of the commercial criteria it needs to make sensible decisions.
Finally, price restraint in the nationalised industries has meant that they have had to have recourse to the Treasury for funds in order to keep going and to finance their investments. Not only is continuous Treasury interference in the affairs of the nationalised industries not always a good thing; it has pushed up the borrowing requirement of the Treasury and added to inflationary pressures. The Economist estimated last Friday that current subsidies to the nationalised industries were running at £1,100 million per year. In other words, twice the sum that is apparently available to subsidise food is currently being used to subsidise goods and services because they happen to be produced by the nationalised industries. I see little economic or social logic in this. It will always be difficult to get back to sensible pricing policies for the nationalised industries, but the later we leave it, the more difficult it will become, and in the meantime the greater will be the distortions in our economy.
It is probably too late to influence the Chancellor’s Budget next week, if, indeed, he would welcome any influence from the Conservative benches. But before the right hon. Gentleman commits himself to large increases in personal taxation, perhaps lie will look at the public sector deficits caused by the nationalised industries. If he were to remove these subsidies, the money he would get in would be equivalent to a 15 per cent. increase in personal taxation. Most people would maintain that it is much fairer to remove those subsidies than to put up personal taxation by that amount.