§ The C.B.I. naturally expects that, if its proposal for price restraint is to be implemented by the private sector, the same should apply to the nationalised industries. The major nationalised industries, as members of the Confederation, were told of the C.B.I.'s proposals, and my right hon. Friends and I have discussed the proposals with the chairmen of those industries. The Government expressed the view that the nationalised industries should be prepared to match the performance of the private sector 1038 members of the C.B.I. by accepting the same restraint on prices on the same conditions. I am pleased to be able to tell the House that the chairmen of all the major nationalised industries have said that they intend to co-operate in this way.
§ This will in itself considerably reinforce the effect of the C.B.I. move, because not only do the prices of the products of the nationalised industries affect the pockets of ordinary people, and therefore have a bearing on wage negotiations ; they also have a considerable effect on industrial costs. The limitation on the price increases of nationalised industries should therefore materially help private industry to hold to the C.B.I.'s objective.
§ I am sure that the whole House will applaud the initiative of the C.B.I. and the response of the nationalised industries.
§ The chairmen of the nationalised industries have been informed that their investment programmes will not be affected as a consequence of this price restraint, that Government control over the industries will not on that account be increased, and that the industries will be able to borrow from the National Loans Fund to finance investment programmes which, in the absence of the price restraint, would have been financed out of their own resources. The detailed financial and other implications are now being discussed by the Ministers concerned with the chairmen of the nationalised industries.
§ The C.B.I. itself has said that, as a corollary of its proposals, it will be even more essential for companies to resist inflationary pay claims. Clearly this is vitally important.