By STUART TROTTER,

Political Correspondent

THE Prime Minister yesterday refused to admit that the identity card

scheme for football supporters south of the Border is to be shelved, but

she had to endure a bad quarter-of-an-hour in the Commons as she was

taunted about the defeat of her particular brainchild.

The report of Lord Justice Taylor on the Hillsborough disaster, in

which 95 died, will be published on Monday if printing can be completed

in time, and the Home Secretary, Mr David Waddington, will make a

statement on it to MPs.

The Cabinet yesterday yesterday endorsed the decision earlier this

week of a meeting of Ministers most closely concerned, including the

Prime Minister, that the ID scheme could not be implemented because of

the strong terms in which Lord Taylor describes the potential dangers

through overcrowding at the turnstiles which it could cause.

The Prime Minister argued that the provision for a scheme contained in

the Football Spectators' Act should be kept in reserve. That face-saving

formula is likely to be used by Mr Waddington on Monday -- although most

MPs feel there is little chance of it being introduced at any time.

However, the Taylor Report is believed to contain a sufficiently large

number of recommendations on crowd safety and policing to provide a

further action programme which the Government can endorse. MPs will have

their first opportunity to debate the issues next Tuesday, in a

three-hour debate initiated by Labour.

Mrs Thatcher refused to comment on the report in advance of

publication and the statement, but she was gradually drawn, through

persistent Opposition questioning, into indicating that she still nurses

no very friendly feelings towards the English football authorities who,

she implied, should use more of their many sources of income on

improving safety and facilities for spectators.

She is believed to be

angry at the strong resistance of the football national bodies and

individual clubs, which was a large factor in the failure of the scheme.

Mr Kinnock, obviously enjoying himself, said the ''shambles''

surrounding the policy showed that Mrs Thatcher's obsessions were no

basis for Government policy.

He further taunted her: ''Since this scheme was without doubt your

obsession, your scheme, it would be appropriate if you came and made the

statement.

''Meanwhile could I invite you to make a little history this afternoon

and simply get up and say you were wrong?''

Mrs Thatcher said the Government already had had success against

football hooligans by banning the sale of alcohol at grounds,

introducing exclusion orders for known troublemakers, stipulating fan

segregation and encouraging clubs to introduce closed-circuit television

and converting grounds to all-seated accommodation. However, there was

''a great deal more to be done,'' she added.

Mr Derek Fatchett (Leeds Central -- Lab.) asked her if she thought

there was anybody else in the country who thought it was a good idea in

the first place.

Mr Joe Ashton (Bassetlaw -- Lab.) said the Taylor Report proved that

Thatcher's law was ''an ass,'' adding: ''You brought in the verdict of

guilty before you heard all the evidence''

He said the Government now should back the application by English

league clubs to be readmitted to European competition -- which the

Government had refused to do in advance of the introduction of its

scheme -- and redirect the #250m tax collected from football pools

towards ground safety.

Mrs Thatcher said clubs had spent a total of #70m last year on

transfer fees and they received a total of #17m in fees from BBC and ITV

for match transmissions, as well as money from the pools companies and

from the Football Trust.

''Perhaps they might consider spending a bigger proportion on their

people that come to watch football, rather than on transfer fees and

other things,'' she added.

Liberal Democrat leader Mr Paddy Ashdown said her sponsorship of the

scheme showed she could not tell the difference between fantasy and

reality. Perhaps, with the failure of this scheme and the withdrawal of

the banks from the student loan scheme the time had arrived when, if the

lady was not for turning, ''at long last, the lady is for learning.''

Only at the end, by demolishing former Labour leader Mr Michael Foot,

was Mrs Thatcher able to restore Tory morale. He had offered to assist

her and suggested that perhaps the previous Leader of the House, Mr John

Wakeham, now Energy Secretary, had ''got the chop'' for telling her that

her ID policy had been ''torn to tatters'' in Commons debates.

Mrs Thatcher replied: ''May I gently inform you that I no more need

your asistance now than when you were Leader of the Opposition and got

the chop.''