§ Q2. Mr. Arthur Davidsonasked the Prime Minister what recent further consultations he has had with the Confederation of British Industry and the Trades Union Congress about measures to increase productivity with a view to helping exports.
§ The Prime MinisterThis has been one of the main questions covered in the discussions on the medium-term economic prospect at recent meetings of the National Economic Development Council.
§ Mr. DavidsonDuring the course of my right hon. Friend's successful visit to the United States, was he able to discuss with President Nixon the important part played by increased productivity bargaining in bringing about such a welcome transformation in our balance-of-payments situation?
§ The Prime MinisterAs I informed the House on Tuesday, my discussions on economic affairs were principally with other members of the Administration than the President. But my hon. Friend no doubt will have read what I said in New York on this matter. This has been widely recognised throughout the United States. I found on my visit to the United States that the success of this country in economic affairs, especially in exports, created a very different atmosphere from that which any other Prime Minister, my 618 own visits included, has had to face on visits to the United States.
§ Sir Harmar NichollsIn the whole field of production and exports, is the Prime Minister aware that while taxes and Government interference generally are a big handicap, perhaps the biggest handicap of all is the credit squeeze in that, even if one is prepared to pay high interest rates, one cannot get a viable investment?
§ The Prime MinisterI have nothing to add to what my right hon. Friend the Chancellor of the Exchequer and other Treasury Ministers have said in successive weeks on that matter.