Tag: Shirley Williams

  • Shirley Williams – 1974 Interview on Rising Prices

    Shirley Williams – 1974 Interview on Rising Prices

    Part of the interview broadcast on Good Afternoon on Thames TV on 9 August 1974 with Shirley Williams, the then Secretary of State for Prices and Consumer Protection.

    INTERVIEWER

    Shirley Williams, can you tell me what effective steps you’ve taken to control rising prices?

    SHIRLEY WILLIAMS

    Yes, indeed and I think I have to say that I’ve always said there are some things you can do and some things you can’t do. And I’ll now list the things that I’ve tried to do.

    We first of all, declare a cut across the board in the retail margins of profit by 10%. We extended it not just to fresh food, but all the way across including all the non food items as well. We then declared a three months gap between price increases except to the few very rare cases. We ended the business of increasing prices of goods bought at the same price for stock goods on display, the so called sticky label racket.

    The next group of things we did was to bring in a Prices Bill which is now law, which enabled us to subsidise foods and under it we’ve subsidised bread, milk, butter, flour, and cheese. And that’s not the end of it, there’ll be others. We took powers to require the display of maximum prices for these subsidised foods and the orders on that are going out at the present time. We took powers to introduce unit pricing of particularly fresh foods, especially fruit and vegetables, meat and fish. And the first orders on that tool will be going out in the next few weeks.

    We entered on a voluntary agreement with the retail trade covering essential foodstuffs which weren’t subsidised, in an attempt to try to keep the margins down as low as possible on that, and finally, we’ve taken steps with the local authorities to greatly extend consumer advice centres and we hope that in a short space of time, these will also engage in price monitoring. That’s just on the prices side. I will leave out the consumer protection side where we’ve tried to do some things also. Net effect you want to ask, between four and five points on the food index, up to now with a bit more to come.

    INTERVIEWER

    Well, there’s lots and lots of points to take up there. And perhaps we could start with subsidies? Now the classic argument is you must know only too well against food subsidies is that we all get them, regardless of whether we need them or not. And to back this up yourself, you said recently in the House that only a quarter of the people who benefit from subsidies earn less than 30 pounds a week, actually 24%, are they then the best way of helping people who need help?

    SHIRLEY WILLIAMS

    Oh, Tony, you’ve got yourself stuck into a statistical difficulty that all the House of Commons got itself stuck in, so I can’t blame you. No, it’s 24% of households. But you see, most pensioners are households of one or two people. So that that many households represents far more people than the household figure gives you. Now we know three things about this. The first says that pensioners benefit most, they actually benefit in absolute terms most, that’s to say they make more out of subsidies per head than anybody else in the population. Reason for this quite simply is they buy more staple foods and they spend more of their budget on food. They don’t spend the same amount on cars and holidays and entertainment that no doubt you and I do. So they benefit the most, absolutely. They also benefit the most proportionately, and so do the poor families.

    The other part of the argument, I’ll be as quick about this as I can, of course it’s true that the average benefit of 60 pence a week goes to everybody. But the great difference is that anybody who earns over 60 pounds a week is paying an extra tax much more than he’s getting in subsidy. And anybody earning under 20 pounds a week is paying nothing extra in tax at all. So the whole of the subsidy benefits him and it’s what we call a give and take scheme, quite simply.

    INTERVIEWER

    But isn’t it true that the point of subsidies is completely lost if the good effect they have on lowering the cost of living is completely eroded by the government’s decision to put extra charges on the services of nationalised industries, things like electricity and gas, which pensioners need just as much as everybody else? I mean, isn’t that whole effect completely eroded away, and therefore we’re back to square one?

    SHIRLEY WILLIAMS

    As I began this programme by saying, there has been a definite impact on the food index and a definite impact on the pensioner index. The reason for this is that, although I agree with you nationalised industry prices do affect the pensioner, the pensioner does spend more of his income on food and rent. The two crucial things that had been directly affected in one case by subsidy and the other by freeze, then does anybody else in the population except the very poor large family.

    Now coming to nationalise industries prices. I mean, obviously, as the Prices Minister, I hate to see nationalise industries prices go up. But I think it’s fair to say that the scale of the subsidy was running at about 1,400 million pounds at the end of February, that the only way to sustain this would have been a massive further increase in income tax and other taxes including VAT. Therefore the feeling was in the government, and indeed in the Conservative government before it, that we could had to set a ceiling to these nationalised industry subsidies. And the only other point I would make is this. We have tried to protect the less well off, for example, rail fares to commuters have gone up substantially less than rail fares for people travelling InterCity because our studies have shown us that commuters include far more lower paid people.

    INTERVIEWER

    But you mentioned the word income then. Isn’t it really better to give people the money in some form or another, like increase pensions or family allowances or even less tax ,or some sort of tax credit then they can decide what they themselves would like to spend the money on?

    SHIRLEY WILLIAMS

    It’s no good giving people pensions on the one hand, and then see the whole lot eroded by increases in prices on the other. But the other point I want to make is this, because I think you have got a serious point about family allowances. Subsidies affected the cost of living immediately. It takes perhaps four weeks, six weeks to bring in a subsidy scheme, at least in areas where you can properly inspect it. There are some things like meat, but I’ve always admitted it’s very difficult to do.

    You can’t bring in a new family allowance system in anything like that time. You’ve got to print the books, you’ve got to set up the staff and so on. So can I just say this too quickly? The services have never been intended to be permanent, they’re intended to take the top off inflation. There is nothing in subsidies to preclude the government moving on to family allowances, moving on to higher pensions, but it can’t be done as quickly. It even took pensions up to July to be done although Mrs. Castle worked overtime and so did her staff and that was the shortest possible time.

  • Shirley Williams – 1978 Statement on Education

    Shirley Williams – 1978 Statement on Education

    Below is the text of the statement made by Shirley Williams, the then Secretary of State for Education and Science, in the House of Commons on 3 November 1978.

    I think that everyone in the House will welcome the fact that we are having a debate on education today, because we have too few opportunities to discuss education here. I think that there is room for a good deal more debate, which many of us would like to see.

    I am very glad to say that at least some objectivity has been filtering into the great debate about standards, which has gone on for so long in the world of education. On 26th September this year the national primary survey was published.

    It covered 542 primary schools and 1,127 primary classes. It is perhaps worth recalling some of the things that the survey said. I quote first what the inspectors said about the three Rs:

    “High priority is given to teaching children to read, write and learn mathematics.”

    They also said:

    “The children behave responsibly and co-operate with their teachers and with other children … A quiet working atmosphere is established when necessary … The teaching of reading is regarded by teachers as extremely important, and the basic work in this skill is undertaken systematically.”

    The results of surveys conducted since 1955 by the National Foundation for Educational Research are

    “consistent with gradually improving reading standards of 11 year olds.”

    Indeed, those tests show quite a marked improvement over the past 20 years, and particularly over the past four years.

    Too often examination results are used as if they were the only yardstick by which standards can be judged. I do not accept that. As we all know, a school may he doing outstandingly well in difficult circumstances without coming high in any examination results league table. A good school in an inner city area may not achieve as many examination passes as a bad school in a rich suburb, and yet it is, for all that, a good school.

    The hon. Member for Brent, North (Dr. Boyson) recently attempted to suggest that the contrast between the Trafford and Manchester A-level examination results demonstrated the superiority of the old selective system over the comprehensive system. It does nothing of the sort. The social and economic differences between the two areas, measured by almost any index one likes to take—overcrowding at home, unemployment, dependence on supplementary benefit, unskilled or professional family occupations, single-parent families, car ownership or virtually any other index —show that Manchester is below all those indices, nationally taken, and Trafford substantially above.

    Yet, as if even that were not enough—and I believe that this demonstrates an essential weakness in the hon. Gentleman’s comparison—the hon. Gentleman also left out of account completely the A-level performance of Catholic pupils in Manchester, who constitute no less than 26 per cent. of the school population. Incidentally, there are no Catholic schools in Trafford, so the comparison could not apply.

    Such real evidence as there is about whether comprehensive schools are having an effect on standards of achievement points in a different direction. In national terms, almost twice as many young people obtained one or more A-level passes as was the case 15 years ago under the almost total selective system. Over four-fifths of school leavers now leave with some qualification as compared with barely half 10 years ago. This positive national evidence is reinforced by information from local education authorities such as Sheffield, Leicestershire, and East ​ Sussex, which shows marked signs of improvement.

    A Hertfordshire survey, the most recent we have, shows that in Welwyn Garden City, the first area of the county to go fully comprehensive in 1968, O-level passes almost doubled between that year and 1975, while A-level passes rose by 63 per cent. Nationally, in the 10 years between 1966–67 when there were few comprehensive schools, and 1976–77, the proportion of school leavers gaining the higher grades 1 to 4 in O-level GCE—and I take the Opposition spokesman’s measure of GCE and not CSE—rose from 17 per cent to 27 per cent. By any standards, that is a creditable achievement.

    There are, of course, some areas of concern and we tackle each of these where they are identified. For instance, in mathematics there have been problems arising from the adoption of modern maths in many schools and the preference of employers for those to whom they offer jobs to have traditional maths. This is why the Government announced, in March of this year, their intention to set up an inquiry into the teaching of mathematics. On 25th September I was able to announce the composition of the inquiry and to say that the chairman would be Dr Wilfrid Cockcroft.

    The Government have taken steps to engage in a curriculum survey. The replies from individual local education authorities, which were requested by 30th June 1978, have led so far to 90 responses from English authorities, out of a total of 97. We have had responses from all the Welsh authorities. We are promised returns from six more English authorities within the next few weeks. There is, so far, only one authority which has not submitted a return. Not too surprisingly, it is the Conservative-controlled authority of Kingston upon Thames, which will not respond to the curriculum survey.

    All of this shows that the survey has been taken very seriously. We are now engaged in assessing the replies received. We hope to be able to summarise the information and make it available early next year. It will, for the first time, give us a clear picture of what gaps there may be in our system, what its strengths are, and of variations in provision ​ between one area and another. It will be directly relevant to giving all of our children a fair deal in education. It is interesting to note that this is the first time that it has been attempted. As usual, we have not had much support from the Opposition Benches for the curriculum survey. I am bound to say that I believe there to be a certain element of hypocrisy in the endless reiteration of concern about standards by Tory Members.

    Dr. Keith Hampson (Ripon)

    Will the right hon. Lady give way?

    Mrs. Williams

    No. I will not give way because I have not yet indicated why I believe there to be an element of hypocrisy. I think that I had better explain why I think this is so.

    I mentioned Kingston upon Thames, which is just one example of an authority which is not co-operating in something which most people recognise to be crucial if we are to give our children adequate opportunities. There are a number of other instances to which I would like to draw the attention of the House. For example, the estimates made by CIPFA for the current year show that the average pupil-teacher ratio in all our schools is now 23 pupils per teacher in primary schools and 16·6 in secondary schools. Incidentally, these figures are the best we have ever had in our history.

    As for the worst records, the worst 10 authorities in terms of pupil-teacher ratio in primary schools are all Conservative. The worst 10 authorities in terms of pupil-teacher ratio in secondary schools are all Conservative, although most people recognise that small classes are helpful in achieving good education.

    Dr. Hampson

    I was trying to intervene on the accusation the Secretary of State made that the Conservative Front Bench and other education spokesmen on the Tory Benches had not given her support over the curriculum review. We have. All the way through the procedures on the Education Act 1976 we kept asking for this sort of review. Indeed, two years before the right hon. Lady set up the maths inquiry, we were calling for one, and a year and a half before she set up the scheme for the training of teachers in maths we were calling for that.

    Mrs. Williams

    I can only say that the hon. Gentleman’s Administration were in power for quite a long time, when all of these problems emerged, not least the problem of mathematics. They did absolutely nothing about them.

    Dr. Hampson

    Is the right hon. Lady withdrawing the accusation?

    Mrs. Williams

    I am not withdrawing the accusation, I am sustaining it.

    Turning now to the under-fives, let me say at once that the 1977 figures for educational provision—and we all say that nursery school education is important —indicate that all the 18 worst authorities giving 20 per cent. or less provision were Conservative-controlled. Of the nine authorities which provided 60 per cent. provision for the under-fives, six were Labour-controlled. In the past two years, the Government have mounted a modest nursery education capital building programme. It is not as large as I would wish to see, yet the interesting thing is that only 40 per cent. of Tory-controlled authorities made any bid whatever for that programme as compared with nearly 90 per cent. of Labour-controlled authorities.

    It is not too surprising, with regard to school milk, that all Labour-controlled LEAs and only a minority of Tory-controlled LEAs have taken advantage of the scheme. Hon. Gentlemen argue that the rate support grant distribution makes it difficult for some of their authorities to take up this Government provision. It is perfectly true that for some authorities, especially in the shire counties, the combination of a rising school population and the rate support grant distribution has made life difficult. I readily concede that. However, there are a great many Conservative-controlled authorities of which this is not true and which persistently try to keep down the rate and finance their education by doing so and which fail to take advantage of the opportunities offered to them.

    The hon. Member for Chelmsford (Mr. St. John-Stevas) sometimes trips into words or print on the basis of rather inadequate homework. I must be merciful to him, because not all of us have to bear the burden of the hon. Member for Brent, North, who, I am reliably informed, is known among his colleagues ​ as the Colossus of Rhodes. I would like to investigate two of the more recent sallies of the hon. Member for Chelmsford. Last year, the hon. Member said:

    “The Tories would reintroduce national standards of literacy and numeracy, which were unwisely done away with by the Labour Government in 1966.”

    He was then asked what he meant, and replied:

    “You will have to research that one for yourself. I don’t know.”

    I am bound to tell the hon. Gentleman that there were once minimum national standards of this kind for schools. They existed until the First World War. A child could not leave school without achieving those national minimum standards. We had minimum standards earlier when we had the payment by results system in 1866. But at no time since the First World War have there ever been national minimum standards laid down by any Government, for the straightforward reason that they tend to be a ceiling and not a floor.

    The hon. Member for Chelmsford might wish to go back to 1866—we all know that he is extremely fond of the era of Gladstone and Disraeli—but he must recognise that when he accuses the Labour Government of having removed national minimum standards he is talking about a fable.

    Let me give a more recent example. The hon. Member for Chelmsford recently made a speech in Coventry on the subject of the 16-plus common system of examinations. He began by denouncing me for irresponsibility, for dangerous and inadequate proposals, for doctrinaire attitudes—indeed, the thesaurus almost began to run out before the hon. Gentleman had exhausted his adjectives. It then emerged that the hon. Gentleman was backing every horse in the race—O-level, CSE, common examination and anything else we might care to name.

    Not too surprisingly, The Times of 27th October 1978 said:

    “Apart from a pledge to preserve the identity of the O-level examination, Mr. St. John-Stevas’s proposals do not seem to differ widely from those put forward by the Government in its White Paper.”

    The article also pointed out that the hon. Gentleman said that he was strongly in favour of a single system with a common seven-point grading system and of ​ national provisions to make sure that the subjects were effectively monitored. But this Government said long before he did that there should be a seven-point grading system of common examinations, a national monitoring body to monitor standards, and a proper rationalisation of the 22 boards we have for examinations. The hon. Gentleman may look good in my clothes, but I suspect that he would look even better in his own.

    With regard to the 16-plus examination there has also been a long and confusing discussion about what local authorities actually said, so I shall quote once again what they said and ask the House to make a judgment of whether it constitutes what the hon. Gentleman has seen fit to call opposition to the proposal for a common system of examinations.

    The education committee of the Association of County Councils said that it

    “fully accepts the desirability of a common system of examining at 16+; uncertainty should be ended and decisions quickly made”.

    The education committee of the ACC also said that it believed that the common system of examinations would improve standards.

    The Association of Metropolitan Authorities, also now under Conservative control said:

    “We resolve that the case for some reform is well made. There are far too many examination boards and many of them work far too separately. Public uncertainty needs to be resolved.”

    It went on to say that it wanted to see O-level standards maintained. It said this against the background of accepting the case for reform.

    The Confederation of British Industry, in a letter to me, said:

    “The CBI is therefore prepared to accept the overall judgment of the Committee ”

    —that is, the Waddell committee—

    “in favour of a common examining system from an educational standpoint.”

    It stressed the importance of maintaining standards.

    Since these responses to the Waddell committee and the White Paper, it is true that local authorities have in various ways qualified very much. My belief is that the hon. Member for Chelmsford is much too civilised to have leaned on them, but I am not quite so sure about some of his political colleagues. But what is clear is that ​ all the local authorities after considering the points made to them, made the statements that I have read out to the House, and those statements, only as recently as a few days ago, the ACC in particular has reiterated in the form that I have read out.

    Mr. Norman St. John-Stevas (Chelmsford)

    I am sure that the right hon. Lady would not want to misrepresent the truth or represent only a portion of it. Surely the vital point at issue between her and me and the ACC and the AMA is that she wishes to abolish O-levels whereas we all wish to retain them. Both the AMA and the ACC are on record on that point, and that is the point of difference between the two sides of the House.

    Mrs. Williams

    No, I do not think that that will quite do. I recognise and accept that the hon. Gentleman has said that he wants to retain O-levels. He has also said that he is not opposed to a single examination system. The problem is—and the House must get this clear—that just as hon. Members opposite so often claim that it is possible to have both grammar and comprehensive schools, they now appear to claim that it is possible to have a common system of examinations and the O-level. We have to face the fact that choices need to be made. The ACC has said that it wants to see O-level standards maintained, and I believe that that can be adequately done.

    I want to say something about the Bill that we shall bring forward under the terms of the Gracious Speech. One element will deal with the troubled question of school admissions. We need to strike a new balance between the legitimate desire of parents to be able to express their wishes about where their children should go to school—and it is worth recollecting to the House that under the old selective system 80 per cent. of parents exercised no choice at all, a fact constantly glossed over in the frequent comments about parental preferences—and the need on the other hand to plan the redeployment of education resources.

    Over the next few years, local education authorities will have a very difficult job of planning for and managing the decline in school rolls. We have to create a framework in which they can arrive at a sensible solution for their own areas, ​ and that must allow for some control over the capacity of schools. Without such control there is no way of phasing out of the system some of the very old and decrepit schools we still have in our cities and some other areas in such a way as to ensure that our children have better accommodation and better facilities than at present.

    But in order to strike this balance we also aim to give all parents the right to express a preference for the school they wish their child to attend and adequate information on which to base that preference. This would include a sensible system of local as well as national appeals.

    I hope that the House will recognise that the present system is beginning to break down before our eyes. There are no effective systems of local appeal in some authorities. The national appeal system involves parents in keeping children out of school, sometimes for months on end, at considerable suffering to the child and to his or her parents, in order, at the end of the day, sometimes to secure that the child attends the school they originally preferred but at a cost which in educational and psychological terms is unacceptably high.

    The Bill will also include reference to the question of the governing of schools. I draw the House’s attention to the fact that here again the Government will be taking steps to give parents as well as teachers a greater role in the governing bodies of schools. Here again we are acting where from other people only much lip service is paid to the importance of parents, but nothing has actually been done by previous administrations.

    We intend therefore to lay down a statutory requirement to provide for a minimum number of parents and teachers on each governing body. As the House will appreciate, the size of a governing body varies as between a primary school and a secondary school and according to the size of the school. Therefore, I cannot give a figure but we will be laying down minimum proportions. At the primary level we intend that district councils and other minor authorities should continue to have a right of representation on primary school governing bodies.

    Mr. A. J. Beith (Berwick-upon-Tweed)

    When the right hon. Lady says “other minor authorities “, does she have parish councils in mind? They lay great importance on their right to nominate to the local primary school.

    Mrs. Williams

    I hope that the hon. Gentleman will not mind awaiting the terms of the Bill. The question of minor authorities turns a great deal on the representation in schools, but we are not accepting the Taylor committee’s recommendation that the right of minor authorities to appoint governors should be phased out.

    With regard to secondary schools, it is our view that representatives of the wider community, in particular employers and trade unions, appropriately ought to be represented on governing bodies because the transition from school to work is of such importance. We do not believe that they are appropriate on primary school governing bodies, where there is a stronger case for other groups to be represented.

    I am particularly pleased to tell the House that the national bodies representing denominational schools have also been willing to discuss associated changes in the composition of governing bodies of voluntary schools. This has been a problem because of the way in which the Education Act 1944 enshrines a substantial majority for denominational bodies.

    Within the next few weeks a consultation document will be published setting out the background to our proposals for primary legislation and for the regulations to be made under that legislation. This will allow me to hold a further round of negotiations on the regulations and also to take full account of what is said in the House during the passage of the Bill.

    In response to fears which have been expressed about the prospect of radical change in the powers of governing bodies, I want to echo what I said in this corresponding debate 12 months ago. The changes in the composition of governing bodies are not intended to diminish the professional responsibility of teachers with regard to the curriculum and teaching methods. They remain, of course, the statutory responsibility of the local education authorities, and it is our view, that they should above all constitute a forum for discussion, explanation and influence on these matters. But there is no question that the governing bodies should take ​ over from the professionals with regard to the direction of the curriculum itself.

    I made it clear last March that in the Government’s view the Oakes working group’s proposals

    “taken in their entirety, mark a real advance towards a solution of the problem of forward planning and financial control of higher education in the maintained sector “.—[Official Report, 20th March 1978; Vol. 946, c. 428.]

    I also indicated our broad agreement with the report’s conclusions as the basis for possible future action to modify present arrangements, but I said that before taking steps in the matter we intended, as I had promised when the group was established, to consult all the various interests involved.

    Comments received show a broad consensus in favour of the report’s main proposal for the establishment of a national framework for the planning of higher education in the maintained sector. Certainly, there is no evidence from the comments received of an alternative solution to the problems of management likely to command more support from the various parties involved.

    The position of the local authorities as maintaining authorities would be both underlined and redefined if the proposals of the report are implemented. The Government fully appreciate the concern expressed by the local authority associations that the interests of maintaining authorities should be protected in any new system, and the legislation that we are proposing will reflect this.

    The House will also know of my concern for young people from poorer homes who leave education early because their parents are not able to afford to keep them there any longer. Some find jobs and perhaps are able, with luck and determination, to continue their education, probably part-time, in later life, but many are not so lucky. Some do not find a job.

    The provision for them, through the programmes of special help to the young unemployed, is of the greatest value and is growing rapidly, but none of these measures can fully make good all that these young people might have achieved if they had been able to carry on full-time with their better-off contemporaries in school or college. We lose many of our most able young people at 16 from the ​ school and further education system, because they cannot afford to stay on.

    There is growing evidence also that the participation rate of 18-year olds in higher education is levelling out in a way that suggests that we are not tapping as many of the groups in the population that would be capable of gaining from higher education as I believe all of us in the House would want to do.

    I am determined that we shall mend this broken bridge, and the Government —as I said to my hon. Friend the Member for Stockport, North (Mr. Bennett) —committed themselves in May this year in principle to the provision of a mandatory system of awards to meet this clear need. At that time it was fully supported by the local authority associations, and I greatly regret that since then they have seen fit, at least in part, to change their opinion on the matter. It seems to be a rather frequent occurrence at present among the local authority associations, but I would not wish to make any suggestion as to the reason for it.

    In the Government’s view, it is not a question of whether to do this but when to do it. I will make no bones at all about the fact that the climate for public expenditure has become more difficult since May, owing to there having been no agreement yet on an incomes policy, but, as the House knows, the Government are looking very carefully at proposals for major increases in public expenditure and at the timing for the introduction of an educational maintenance allowance system. I shall keep the House informed on this matter.

    I turn now to resources for education. I am not yet at liberty to tell the House what is the position with regard to public expenditure for the coming financial year, nor, as the House will know, has any announcement of the rate support grant settlement been made to the local authorities. The matter is still under discussion. But I can say that at present—I think it is worth reiterating this—education’s share of the gross national product, which was 4 per cent. in 1960, 5·8 per cent. in 1970, and 6·1 per cent. when the Conservative Administration left office, was last year 6·3 per cent. There are reasons to believe that the figure will increase in the coming year.

    There is already provision in 1979–80 for 7,600 additional teaching jobs, which will help to improve the staff/student ratios. The figure for employment of teachers this year is the highest ever, at 464,972. The figure of registered teachers unemployed was lower this September—only slightly lower but nevertheless lower —than it was last year, largely because of the provision for additional teaching jobs.

    I hope to be able to tell the House shortly the position with regard to teaching jobs next year. We hope also to be able to inform the local authorities, within the next short period, about the position concerning school meals, because we recognise that they are put in very grave difficulties by announcements about school meal charges being made at a late date, as happened last year.

    With regard to in-service expenditure and expenditure on books and equipment, the House will know that there was an underspending, on the basis of the RSG figures, of £13 million for in-service training and £8 million for books and equipment last year. I regret both of these, because both are crucial to the quality and standard of education. My hon. Friend the Minister of State will be talking to the local authorities about the ways in which in-service training can be more rapidly expanded in order to get back to the target for which the Government have provided resources, on the basis of achieving the equivalent of some 13,500 full-time teachers in the year 1981–82. But I have to say that local authorities have fallen behind our targets in the last two years. The same is true with regard to books and equipment, where we are making provision in the coming year for an improvement of 2 per cent. in real terms for non-teaching costs. I hope very much that authorities will take this up.

    I think that the Government have a good record in terms of the provision they have made for education, and I only regret that not all of that provision has been taken up. I end by saying that my real fear is that, at a time when the education system is beginning to show a real and measured improvement in terms of the quality and standard of education, we are offered by the Conservatives the recipe for a demoralised education service, a scheme for ​ skimming voucher schemes, aided places, and the reintroduction of selection in a curious back-door way, which in my view would disrupt our education all over again, just at the time when it is beginning to settle down and give all our children a better chance than ever before.

  • Shirley Williams – 1974 Speech on the Bread Subsidy

    Below is the text of the speech made by Shirley Williams, the then Secretary of State for Prices and Consumer Protection, in the House of Commons on 20 March 1974.

    I have discussed with representatives of the bakers the situation arising from their proposals to make increases in bread prices on 25th March following their notifications to the Price Commission.

    As the House is aware, it is the Government’s intention to introduce food subsidies for certain basic foodstuffs as soon as possible and, against that background, I explained to the bakers that it was my wish to avoid any price increases occurring on the major types of bread. After consultation with my right hon. Friend the Chancellor of the Exchequer, I have now agreed with the bakers on arrangements under which there will be no increase on 25th March in the price of almost all loaves weighing 14 ounces or more, which account for nearly 94 per cent. of bread consumption.

    I am grateful for the co-operation of the bakers in enabling these arrangements to be made so quickly. Loaves of less than 14 ounces—which comprise smaller speciality loaves such as French bread, bread rolls and most types of starch-reduced bread—are not subject to these arrangements. Therefore, there may be some prices increases for these speciality breads.

    The proposals which I am making will involve paying a subsidy, subject to the approval by the House of the powers I shall be seeking in the proposed legislation on prices and subsidies. Estimates will be laid before the House in due course. The estimated cost of avoiding this round of increases in bread prices is of the order of £21 million per annum. My right hon. Friend will be taking this cost into account in formulating his Budget.

    Mr. Peter Walker

    May I ask the right hon. Lady whether it is her intention, by means of subsidy, to hold the price of bread at its present level irrespective of ​ further rises in cost? Secondly, may I ask her whether she is satisfied that spending £21 million on an indiscriminate subsidy of this type is the best way to spend such a sum to help those most in need? Finally, is it her intention to make further statements on subsidies for milk, cheese, butter, margarine, cooking fats, eggs, bacon, ham, poultry and flour, which the present Leader of the House said are items which could be subsidised by a Labour Government?

    Mrs. Williams

    In reply to the right hon. Gentleman’s first question, I can only say that he will have to wait and see, because neither he nor I can say what will be the movement of wheat prices in the next few months. Further price increases will be subject to notification to the Price Commission, and it will be open to us to engage in further discussions with the industry.

    As for the suggestion that the subsidy is indiscriminate, I must say that so-called discriminating subsidies constantly fail on the grounds of take-up. Therefore, we feel that bread, being an essential in the diet particularly of lower-paid workers and pensioners, is very well worth subsidising.

    On the question of further subsidies, my right hon. Friend said that these were articles that could be subsidised; it is important to distinguish between “could” and “would”. I will make further announcements to the House about any other individual commodities which we intend to subsidise.

    Mr. Cledwyn Hughes

    Is my right hon. Friend aware that her statement will be warmly welcomed as an important counter-inflationary measure and as an immediate fulfilment of our election pledge? Is she also aware that in certain rural areas, including my own constituency of Anglesey, an extra 1p is added to the cost of the loaf? Will she investigate this as a matter of urgency?

    Mrs. Williams

    I thank my right hon. Friend the Member for Anglesey (Mr. Hughes). In reply to his point about the rural areas where transport costs lead to higher prices, we are at present only holding existing prices, but this is necessarily the sort of matter that we shall have in mind in our longer-term consideration.

    Mr. Pardoe

    While congratulating the right hon. Lady on having emerged from these negotiations and having learned that cheque book government is a good deal more difficult than she thought, may I ask the right hon. Lady to confirm that to have pegged the price of bread in 1970 would by now be costing the British taxpayer £200 million? Does she not think that the £500 million that she has available would be better spent not on indiscriminate or discriminate subsidies but on family allowances? Will she confirm that, having failed to subsidise French bread, George Thomson was right when he said that the French are now subsidising British bread?

    Mrs. Williams

    In reply to the hon. Gentleman’s first point, only the hon. Gentleman and the Liberal Party suppose that any kind of government is easy. Some of us know better than that.

    The cost of family allowances is a separate matter which we shall be looking at as a Government. We were the last Government to increase family allowances. We believe that family allowances should have been increased in the long period since they were last increased. However, that is not a matter with which I am immediately concerned because bread is important in the diet of pensioners as well as of families.

    In reply to the third point, we are allowing the price of the French loaf—a loaf which may be enjoyed by those who receive the salaries of Members of Parliament—to find its own market level. It is no policy of the present Government to subsidise luxury foodstuffs.

    Mr. Mark Hughes

    Will my right hon. Friend say what will be the effect of this announcement on household flour, and whether there will be any consequential changes on milling tails for animal feeding stuffs?

    Mrs. Williams

    In reply to the first part of the question, no general price increase has been notified for flour. Were such a price increase to come, we would consider it sympathetically.

    In reply to my hon. Friend’s question about feeding stuffs, the subsidy relates only to bread flour used for the commercial production of bread. This by itself will not affect feeding stuff prices.

    Mr. Hordern

    Will the right hon. Lady confirm that the subsidy of £21 million covers only the historic costs of the bakers and does not include the current world price of wheat, and that a further claim by the bakers is likely to be made to the Price Commission in the next six weeks? An estimate of that cost is around £70 million. Will the right hon. Lady allow the subsidy to cover that figure in due course?

    Mrs. Williams

    The hon. Gentleman will appreciate that the figure which I announced will not cover any further increase apart from the one which we have under consideration. The figure which I am giving deals with the increase at present in the pipeline. Any further increase will have to be notified to the Price Commission and considered by the Commission, as was the case under the previous administration. What will happen in connection with the Government’s policy in respect of any further increases is a matter which I am sure the hon. Gentleman will not expect me to anticipate.

    Mr. Jay

    While warmly welcoming the announcement which my right hon. Friend has made, may I ask her to say whether the Government will also stop the denaturing of good milling wheat by the Intervention Board which is designed to keep prices up and cannot rationally be combined with a policy of subsidies?

    Mrs. Williams

    I understand that this matter is to be looked at by my right hon. Friend the Minister of Agriculture and Fisheries in the discussions which he will be having shortly with the EEC. I take my right hon. Friend’s point.

    Sir D. Walker-Smith

    Will the right hon. Lady clarify the position, in the context of what she calls speciality bread —such as wholemeal bread, starch-reduced bread and other dietetically beneficent bread, if these were excluded from subsidy—from the point of view of the health of the nation?

    Mrs. Williams

    I share the right hon. and learned Gentleman’s affection for these beneficent breads. Any loaf which weighs either 14 ounces or 28 ounces will be covered by the subsidy, which is necessarily rough and ready mechanism because it has been organised in a short time. What happens in the longer term is another matter, and we shall hold dis- ​ cussions with the bakers concerning the many varieties of bread which exist.

    Mr. Arthur Davidson

    May I ask my right hon. Friend a simple question? Does this mean that bread prices will not go up in any shop? Secondly, will she keep an eye on an important fact—namely, ensuring that the English loaf is not suddenly transformed overnight into a speciality French loaf for the worst possible reasons?

    Mrs. Williams

    I am glad my hon. Friend asked that question because it is important to make the position clear. The subsidy does not cover breads which are 10 ounces and below—such products as bread rolls, French baguets and so forth. It does not cover speciality breads of any kind. Those bakers who do not apply for the subsidy will not be covered by it. I trust that there will be few such, but there may be some.

    The simple answer, therefore, to my hon. Friend’s question is that the housewife will find that the price of the ordinary 14-ounce and 28-ounce loaves should not be increased. If she finds that it has been increased in one shop, I ask her to—[HON. MEMBERS: “Shop around?”]—walk down the road to the next shop. But we are talking about 94 per cent. of all loaves produced, so I am sure the housewife will not be obliged to shop around.

    Mrs. Oppenheim

    I welcome the right hon. Lady’s apparent conversion to shopping around. Does she consider bread to be one of those items which bear most heavily on the family budget? What is the cash benefit per week likely to be to the average family on average bread consumption? How is this likely to be offset by other increases in prices, such as for electricity?

    Mrs. Williams

    I am not converted to shopping around, which I thought was one of the sillier pieces of advice given by the last Government, since so many will not be obliged to shop around, because 94 per cent. of the loaves will be cause 94 per cent. of the loaves will be covered. Bread is one of the larger items in the retail food price index. I should have thought that the hon. Lady would know that. She will not expect me to anticipate statements, not only of my Department but of other Departments, about prices in the nationalised industries.

    ​Mr. Huckfield

    I welcome what my right hon. Friend said, but is she aware that the latest published returns of the big flour millers reveal that Rank Hovis McDougall’s showed a profits rise of 17·3 per cent., Spillers-French of 17·3 per cent. and Associated British Foods of 27·3 per cent? In the circumstances, should we be subsidising such companies? Should we not be asking them to reduce their subsidies to the Conservative Party?

    Mrs. Williams

    It would be useful if they did so. My hon. Friend is putting a fair point but he is looking at profits which do not wholly relate to bread, and we are not at present subsidising flour or any other ingredients which go into products other than bread. The question of profits is a matter which will be considered by the Price Commission, but it will also be studied by the Government. It would not be appropriate for me to go into the matter today.

    Sir H. Nicholls

    Can the right hon. Lady estimate how much time has been bought by this £21 million? Roughly, when does she expect the price of bread to go up or down as a consequence of the price of the ingredients?

    Mrs. Williams

    I cannot possibly say when the next increase might be due. We are living through an historic period during which wheat prices have risen very fast. [HON. MEMBERS: “Oh.”] We have said it over and over again. I really do wish sometimes that the Conservative Party would not cheer when we repeat what we said over and over again during the election—that world food prices have risen but that they are by no means the only factor in prices.

    Mr. Peter Mills

    In the interest of keeping the loaf fairly steady in price, will the right hon. Lady consider the encouragement of the use of more soft wheat in the mixture and get in touch with the Minister of Agriculture to see whether more hard wheat could not be grown in this country? Both these things would help keep the price of the loaf steady.

    Mrs. Williams

    As the hon. Gentleman will appreciate, there has already been ​ some shift towards soft wheat in the average grind, by millers over the past year, and we welcome that because it has managed to shave the price increase to some extent. I will take the hon. Gentleman’s suggestion about hard wheat further, but he also knows that in the use of soft wheat there is a limit on the staying quality of the loaf. But I will pass his suggestion to my right hon. Friend the Minister of Agriculture.

    Mr. Kilfedder

    What will be the saving to the average family as a result of the subsidy, which I welcome? Can the right hon. Lady ensure that, because of freight charges, the price of bread in Northern Ireland will not be any different from the price in England?

    Mrs. Williams

    The immediate effect will be to avoid an increase in the food price index of 0·25 per cent. I cannot possibly answer the hon. Gentleman’s point about the saving to the average family because this involves each person’s individual food budget. But I have given the best indications I can.

    The hon. Gentleman asked me about the price in Northern Ireland. The subsidy is intended not to meet the additional cost of transport to any part of the United Kingdom but to meet the additional cost of the flour for bread production.