HC Deb 06 May 1975 vol 891 cc1213-5
Q5 Mr. Hurd

asked the Prime Minister whether he will make a statement on his talks with TUC leaders on 21st April.

Q10. Mr. Norman Lamont

asked the Prime Minister whether he will make a statement on his meeting with the TUC on 21st April.

Mr. Edward Short

I have been asked to reply.

My right hon. Friend met TUC leaders at the TUC-Labour Party Liaison Committee meeting on 21st April, one of a regular series of informal meetings held each month to review matters of common interest, including the general state of the economy. We discussed the recent Budget measures and reviewed the operation of the social contract. There was complete agreement about the continuing importance of the social contract and a re-emphasis of the need for firm adherence to the pay guidelines.

Mr. Hurd

How do the Government expect moderate trade unionists, whether they are on the railways or in the universities, to respect the wage guidelines in the social contract when the Government repeatedly connive at settlements in the public sector way beyond the guidelines? Is it not time that the Government began to assert their own policies in their own backyard?

Mr. Short

Certainly the Government have had problems in the public sector. I answered Questions on this matter last week. I explained that the Civil Service pay settlement was within the guidelines. The difference between public sector and private sector settlements has not been all that great.

Mr. Spriggs

Will my right hon. Friend convey to the Prime Minister the hope that is felt on this side of the House that justice will be seen to be done as regards the railway pay negotiations?

Mr. Short

I hope very much that the settlement will not breach the social contract and the TUC guidelines. The matter has now gone to arbitration, and in those circumstances I think that it would be improper for me to comment further.

Mr. Tebbit

Will the Lord President now answer the question which I asked him last week and which he then dodged? Is the TUC happy at the Chancellor's use of monetary policies and his control of demand at such a level as to create 1 million unemployed this winter, which is his target?

Mr. Short

It is estimated that the changes announced by my right hon. Friend the Chancellor of the Exchequer in the Budget will add 20,000 to the unemployment figure, and we regret that very much indeed. The TUC understands the Chancellor's Budget. This was explained to the TUC in great detail at the meeting to which I have referred. We have good will and understanding with the TUC in these matters. It is a pity that we do not have the good will of the Conservative Party in trying to solve the country's problems.