To ask the Prime Minister if he will list his official engagements for Thursday 16 May.

This morning I presided at a meeting of the Cabinet and had meetings with ministerial colleagues and others. In addition to my duties in the House, I shall be having further meetings later today.

Does the Prime Minister agree that today's unemployment figures prove conclusively that the Conservative party has one economic policy only—that of mass unemployment? Is it true that the Government intend to introduce some form of compulsory work scheme to reduce the numbers of jobless people in this country, or will he be following the example of his predecessor by adding to the 30 or so fiddles in the calculation of the number of unemployed? Or will he—[Interruption.]

Order. The hon. Member is taking a great deal of time from his colleagues.

Or will the Prime Minister do what is in the best interests of his country, by resigning and making way for a Labour Government with a genuine strategy on jobs and industry?

The hon. Gentleman is being both silly and graceless. I am as concerned about unemployment as the hon. Gentleman is, and it is precisely for that reason that I propose to continue with the policies to get inflation down, to ensure that there is a stable basis for the creation of jobs. There are a million extra jobs today than there were when the Conservative Government came to power and, in so far as making way for a Labour Government is concerned, as the right hon. and learned Member for Monklands, East (Mr. Smith) has said, because of Labour policy on the minimum wage people will lose their jobs.

Will my right hon. Friend give me an assurance that it is not part of his policy to increase taxation on earnings, unlike the Leader of the Opposition who proposes to increase tax on earnings for one in 15 people, the Shadow Chancellor who intends to increase it for one in eight, or the people who are really master-minding the hidden Labour party agenda, who intend to increase taxes for everyone who earns?

My hon. Friend is certainly correct that Labour Members seem to be in something of a muddle over their tax and spending figures. As the hon. Member for Blackburn (Mr. Straw)—who, alas, is not here at the moment—has said: Yes, of course, in an ideal world we would like to do what the Liberal Democrats are saying and say yes, we'd increase taxation. That is their official policy.

If, as the Prime Minister claimed last Friday, his economic policies are working, why are 2,175,000 people in our country not working?

The right hon. Gentleman is aware that the intention—and it is beginning to show clear signs of success—is to reduce inflation so that we may begin, yet again, to add to the 1 million jobs that we have created during the period of this Conservative Government. There is only one stable and sure way to create jobs and keep them—to keep inflation low, a policy which we shall pursue and he never could.

The Prime Minister seems to forget that today's unemployment figures show the highest April rise in unemployment since the war, that since he has been Prime Minister 3,000 people have lost their jobs every working day, that output is down and that investment has plummeted by 20 per cent. over the year. When the Prime Minister's policies are responsible for causing that huge damage, and when he has no answers and no policies to get out of it, is it not time that he went?

If the right hon. Gentleman is genuinely concerned about unemployment, he should not advocate policies that will artifically increase it, such as the minimum wage. The Institute of Fiscal Studies said of his minimum wage policy: If the point is to avoid people being poor this is an extraordinarily stupid way of doing it. If he does not like the IFS, perhaps Mr. Joe Haines of the Daily Mirror is more to his taste. He said: The minimum wage proposals won't work and if they do, won't help.

Will my right hon. Friend visit, in the near future, a hospital that has opted out? Does he agree that yesterday Lord McColl explained clearly the benefits to patients when a hospital opts out—putting patients before bureaucracy?

I am grateful to my hon. Friend. I will also explain to people in the vicinity that when a hospital opts out, it opts out of bureaucracy and not out of the national health service—contrary to the dishonest literature passed around by the Labour candidate for Monmouth, which the right hon. Member for Islwyn (Mr. Kinnock) should repudiate.

To ask the Prime Minister if he will list his official engagements for Thursday 16 May.

I refer the hon. Gentleman to the reply that I gave some moments ago.

rose——[Interruption.]

Order. Let us settle down.

Conservative Members seem very nervous. In 1979, the Tories promised that, if elected, they would not double VAT, but once elected they increased it from 8 to 15 per cent. On Tuesday, the Prime Minister failed to answer a question on future levels of VAT. Can this simple and honest Prime Minister give a simple and honest answer to the question? If the Tories are re-elected, will they further increase VAT?

The hon. Gentleman graciously concedes that we shall be in a position to decide that at the next General Election, but I want no lectures on value added tax from the party which put tax on children's sweets, even though its leader did not know it.

rose——[Interruption.]

Order. I ask the House to settle down.

Does my right hon. Friend agree that the right way to raise the status of teachers is by giving them a pay review body, rather than reducing their take-home pay by increasing their tax?

I entirely agree with my hon. Friend. Our purpose in introducing a review body was to raise the status of teachers, and I believe that teachers across the country will accept that. The Opposition's policy, on the other hand, is entirely clear—to take away parental choice and, as the hon. Member for Derby, South (Mrs. Beckett) has admitted, to increase taxation on a large number of teachers.

To ask the Prime Minister if he will list his official engagements for Thursday 16 May.

I refer the hon. Gentleman to the reply that I gave some moments ago.

Has the Prime Minister heard of the great gas robbery? Is he aware that, last week, the Government gave permission for the development of up to 12 North sea fields to take gas from off the coast of Aberdeen straight to the north-east of England to generate cheap electricity, and that that will be done with public support through offsets against petroleum revenue tax? Why, under the right hon. Gentleman's Administration, is Scotland set to become the first country in history to pay international oil companies to take away its most valuable natural resource?

The hon. Gentleman might make some acknowledgement of the tremendous asset to Scotland that investment there has been —not least by the oil and gas industries.