§ 23. Mr. Bruce-Gardyneasked the Secretary of State for Trade and Industry if he will make a further statement on the progress of his discussions with the Confederation of British Industry regarding the renewal of their price restraint scheme; and the effects of such renewal on the finances of the nationalised industries.
§ Mr. John DaviesOn the first part of the Question I have nothing to add to what my right hon. Friend the Prime Minister said on 28th March; on the second part of the Question I have nothing to add to what I told my hon. Friend on 20th March.—[Vol. 834, c. 232–3; Vol. 833, c. 1064.]
§ Mr. Bruce-GardyneI am grateful to my right hon. Friend for that reply. Is it not by now evident that a further period of price restraint imposed upon the nationalised industries could well place them in a condition of chronic dependence on taxpayers' subsidies to pay their wages bills? Would not this, far from contributing to a dampening down of inflation, chronically and vastly accelerate the rate of inflation?
§ Mr. DaviesThese are the vexing questions with which we are faced in trying to restrain the movements of inflation—an effort to which, as I know, all hon. Members on both sides are strongly Committed. The problem of the financial situation of the nationalised industries is clearly one of real concern to me. My hon. Friend will agree that control of the inflationary tendency is still the most critical question with which the country is faced.