How successful was Heath as PM? Flashcards
What were Heath’s aims?
> Thought that Labour govt. economic management = failure. He promised to:
- Strengthen economy
- Legislate to transform industrial relations
- Create ‘one nation’, promising regional developments, faster economic growth, better social services + maintenance of full employment
- APPLY TO JOIN EEC, THINKING THAT MEMBERSHIP WOULD FACILITATE THESE OBJECTIVES
Heath’s economic record
> Cons inherited an inflation rate approximately at 5% per annum. This reached 10% four years later.
Unemployment levels in 1974 were no higher than in1970 but number of working days lost to strikes during Cons. 4 years was double that of Wilson’s 6 years.
He inherited a balance of payments surplus but left a substantial deficit.
HOWEVER, his years as PM coincided with what one analysis called a ‘world economic blizzard’. How much can be blamed on Heath’s decisions and how much on adverse circumstances.
How did Britain join the EEC?
> Became a full member on 1st Jan 1973. Heath was a passionate advocate of European Unity + believed that British industry would be better off with access to European markets + that European competition would stimulate modernisation and development.
During debate on EEC membership in 1971, both major parties were divided over Europe. 39 Cons voted against entry but Heath still gained a comfortable majority with 69 Lab MPs defying party line.
De Gaulle had left office ‘69 + therefore Britain had a better chance of success in joining EEC in ’70s. However, George Pompidou wanted Britain to enter on French terms:
-Britain had to sacrifice any remaining preferential trade deals with Commonwealth.
-Accept EEC policy of heavily subsidising French farmers.
What was the Industrial Relations Act, August 1971
> Considerable popular support for govt action to curb strikes.
The Act aimed to balance rights of individual workers and those of the unions.
Provisions of Act:
-Workers would have legal right to join (not to join) a TU. Thus challenging the legality of the closed shop.
- National Industrial Relations Court (NIRC) + Industrial Relations Commission (IRC) were established.
-TUs were required to register with NIRC + IRC. Those that did would have improved rights of recognition by the employers.
-Members of registered TUs would be liable for claims of damages.
-Act gave govt power to order a pre-strike ballot and impose a cooling off period of up to 60 days. (up from 28 with ‘In Place of Strife’).
The failure of the Act
> Many of the policies were similar to ‘In Place of Strife’- not surprising that the Act was unpopular with most union members.
TUC tried to make the Act unworkable by telling members to de-register + defy NIRC.
Act increased bitter confrontations between unions + employers + made Heath’s job of negotiating with TUC over strikes about prices + wages more complicated.
Militant union leaders (esp. at local or shop-floor level) hoped to destroy not only the Industrial Relations Act but also wanted to bring down heath’s govt.
LEGAL JUDGEMENT IN ‘72 ORDERED RELEASE OF SOME DOCK WORKERS WHO REFUSED TO APPEAR BEFORE NIRC- THIS UNDERMINED THE CREDIBILTY OF THE ACT.
What were industrial relations under the Conservatives like?
> Less successful than Wilson in managing industrial relations.
Although the strikes were partly about hostility towards Industrial Relations Act, it was mainly a response to inflation. As prices rose, worker sought to increase wages to prevent living standards from falling.
Why was inflation so severe in the early 1970s?
> ‘71, Nixon ended the system of fixed exchange rates which had existed since end of WW2. This devalued the dollar, making British exports more expensive in the USA.
‘72, £ was allowed to ‘FLOAT’ freely (its value determined by money markets). Britain’s poor industrial performance meant that when the £ floated downwards in value, imports became more expensive.
There was worldwide increase in commodity prices of raw materials, food + fuel.
Heath govt aimed to stimulate growth but this pushed up prices as, by cutting taxes + increasing public spending, (esp. in ‘72 budget), it stimulated demands for goods and services.
The miners’ strike, January to February 1972
> Miners had considerable public sympathy for doing a poorly paid, dangerous and dirty job. However, claim for 47% pay increase was well above govt wage policy + the 8% offered by the National Coal Board.
Jan ‘72, 280,000 coal miners came out on strike- govt force to declare state of emergency - regular power cuts throughout the country. By Feb, govt were anxious for settlement + appointed a commission of inquiry. THIS AWARDED THE MINERS A LARGE PAY INCREASE.
Damaging for the govt because:
-Encourage other workers to strike for pay increases
-Successful strikes added to inflationary pressure
-Govt looked weak in face of hostility (Heath backed down after only a month).
-Emphasised the failure of the Industrial Relations Act.
Why was the miners’ strike successful?
> Skilfully organised -esp. by Scargill (Yorkshire miners’ leader) who co-ordinated FLYING PICKETS.
Violent incidents- namely in Saltley coke depot in Birmingham -15,000 massed pickets successfully prevented large supplies of fuel from leaving the depot. (This didn’t seriously damage public sympathy for the miners).
Govt was poorly prepared to cope with the strike + severe winter weather meant that it had an immediate effect on the country’s power supplies
