Wednesday 20th October 1982
Paddie [Paddie Walters] very worried about “not being liked” in her job
Lunch Dick Sargent (Midland Bank)
Wanted to discuss Bank Profits Tax - I suggested (Inflation - 8)(Assets)(tax rate) - he thought last (1981) years tax was related to the wage increases.
Confirmation of John Hoskyns views of Civil Service
Defeatism - Old Routines (7 Civil Servants! Plus 3 ministers) - PJ [Patrick Jenkin] said he found my schemes attractive but (1) Elasticities (2) Output predictions and (3) Large Profits? Politically? - easy to dispose of them. Agreed to include enabling clause in bill and get Beesley or Littlechild or Heath to set up a proper Walters system. Civil servants were very defeatist - the old ROR system is well tried. We know all about it and it does not work! Ministers much more willing to try new things.
Dinner with PM, Michael Howard, Lord Dacre [Hugh Trevor-Roper], Hugh Thomas, (FO) George Weldon [?George Walden], Terry Burns. Argument on Free Trade