§ Q3. Mr. Sheldonasked the Prime Minister if he will make a statement on his official meeting with the Confederation of British Industry on Monday, 10th July, in Downing Street.
§ Q14. Mr. Ashtonasked the Prime Minister whether he will make a statement on his official meeting with businessmen at Downing Street on Monday, 10th July, regarding inflation.
§ The Prime MinisterI would refer the hon. Members to the answer I gave on 13th July to the hon. Members for Nuneaton (Mr. Leslie Huckfield) and Hackney, Central (Mr. Clinton Davies).—[Vol. 840, c. 421–2.]
§ Mr. SheldonAs the Prime Minister has pursued his policy of reducing wage demands at meetings with both the CBI and the TUC, and as he has already stated that he will not introduce any statutory policy on wages other than in an extreme economic situation, will he now say whether an extreme economic situation exists today?
§ The Prime MinisterWe were to have had a meeting this afternoon but I greatly regret that the meeting has been deferred, as does the CBI. The object of that meeting was to reach a voluntary agreement.
§ Mr. AshtonWhat did the businessmen say about the floating £ pushing up import prices?
§ The Prime MinisterAs far as I know the CBI and the businessmen have said that the decision the Government took at that time was taken at the right time and firmly, and that they were glad we took it.
§ Mr. CantWill the Prime Minister reflect on the remark made by the president of the CBI on leaving the joint meeting between himself, the CBI and the TUC that it is obvious that a great psychological adjustment is required on the part of the Government and business, that the president of the CBI referred to vast speculative fortunes that have been made and to the asset strippers and said he appreciated that this was not consistent with the situation that existed in the country at the moment when the workers' real incomes were being reduced and almost agreed that the capital gains tax would have to rise to 50 per cent.?
§ The Prime MinisterIf the hon. Gentleman looks at the figures he will see that real disposable income in real terms has not been reduced but has increased in the last two years by almost twice as much as it did under the previous Administration. As regards the other matters, what the president of the CBI mentioned were subjects under discussion at the meeting, and they are still to be under discussion.