CBI (MEETINGS) (Hansard, 20 November 1973)

§ Q1. Mr. Duffy
asked the Prime Minister what talks he has had with the CBI about the management of the economy.

§ The Prime Minister (Mr. Edward Heath)
Since May this year I have had a series of meetings with the CBI at which many aspects of the management of the economy were discussed. The last such meeting was on 16th October.

§ Mr. Duffy
Is the Prime Minister aware that meaningful exchanges with the CBI must have confirmed what the Opposition repeatedly warned during the summer, namely, that the economy would run into capacity limitations by the autumn? Does he acknowledge that his difficulties arise not so much from energy and oil shortages as from his gambles on growth, on capacity, on the balance of payments and on stage 3, none of which is coming off?

§ The Prime Minister
I am sorry that the hon. Gentleman did not manage to make a speech yesterday in the debate.
1123 That is not the advice that the CBI has given us. All the information that we have is that certain areas of industry in this country are still not working to full capacity.

§ Sir Harmar Nicholls
Is my right hon. Friend aware that everyone expects him to keep in the closest contact with the CBI and the TUC and to share their experience and knowledge, but that, they would not expect him, having done that and come to a conclusion in the nation's interest, to be bullied off course as the Opposition were on "In Place of Strife"?

§ The Prime Minister
Yes, Sir. This question specifically refers to meetings between myself and the CBI, but the CBI and the TUC are constantly having meetings with Ministers and officials of all Government Departments in Whitehall.

§ Mr. Healey
As the Government's latest figures show that in the last three months prices have been rising very much faster than wages, will the right hon. Gentleman now accept the advice of the President of the CBI—namely, to maintain statutory controls on prices while removing statutory controls from wages?

§ The Prime Minister
I heard that remark in the debate yesterday and I am still trying to get a trace on it, because it is certainly not the official view of the CBI which has been expressed throughout the last 18 months in the talks that we have had.