HC Deb 28 March 1972 vol 834 cc232-3
Q10. Mr. Duffy

asked the Prime Minister if he will make a statement on his official talks with the Confederation of British Industry on jobs, prices and inflation.

The Prime Minister

I would refer the hon. Member to the reply I gave on 21st March to Questions from my hon. Friend the Member for South Angus (Mr. Bruce-Gardyne), the hon. Member for Bothwell (Mr. James Hamilton) and the hon. Member for Stirling and Falkirk Burghs (Mr. Ewing).—[Vol. 833, c. 319–20.]

Mr. Duffy

Does the right hon. Gentleman agree that a vital precondition for T.U.C. co-operation in a policy of restraint is continued price moderation by member firms of the C.B.I.? Will he therefore impress on the C.B.I. the desireability of extending its present policy beyond July?

The Prime Minister

This matter was discussed at the meeting with the C.B.I. and the confederation knows the desire of Her Majesty's Government that the policy of price restraint should continue. On the other hand, as the hon. Gentleman pointed out, wage restraint is involved as well. The C.B.I. has been following and policing very effectively indeed a policy of price restraint for nine months. It is, therefore, entitled to expect a response from the T.U.C. in the form of wage restraint.

Mr. Kenneth Baker

When my right hon. Friend next meets the T.U.C. will he point out that the Government, by reducing taxation substantially, and to C.B.I., by its price initiative since last July, are playing their part in the battle against rising prices, and that it is reasonable to expect leading trade unionists to adopt a responsible attitude towards extravagant wage claims?

The Prime Minister

Yes, Sir. I believe that that is absolutely right. Proof has now been given that the Government are playing their part and that the C.B.I. and its members are acting effectively. I therefore hope that the T.U.C. will be able to implement a policy of wage restraint. I fully recognise that these words are, of themselves, not acceptable to trade unionists who dislike the use of the word "restraint". Nevertheless, the importance of seeing that wages do not outrun producivity should be recognised.