TUC AND CBI (Hansard, 11 April 1978)

§ Q2. Mr. Molloy
asked the Prime Minister when he next proposes to meet the TUC and CBI.

§ The Prime Minister
I met representatives of both the TUC and the CBI 1175 when I took the chair at a meeting of the NEDC on 1st February. Further meetings will be arranged as necessary.

§ Mr. Molloy
When my right hon. Friend next meets the TUC and the CBI, will he draw to their attention the "phoney" display of concern on unemployment adopted by the Opposition? This was revealed last night in their speeches and votes on British Leyland and the National Enterprise Board, two undertakings which were designed to assist the economy of our country and to prevent unemployment and have been successful in doing so. Yet the Tory Opposition are continually opposing them.

§ The Prime Minister
I think that we all thought that it was a rather odd display by the Opposition last night, especially as they did not seem to know whether they wanted a vote or not on the first motion. It is in accordance with their usual practice: they are opposed to all grants and subsidies. That is well recognised and there is no doubt that British Leyland would suffer substantially unless it were able to pursue the path that it has begun of improving its performance very substantially.

§ Mr. Pardoe
Did the Prime Minister discuss with the TUC at the last meeting the need for a new phase of incomes policy, and did he tell the TUC leaders that he still believes that earnings must not rise by more than 5 per cent. during the next phase, and what was their reaction?

§ The Prime Minister
I shall handle this matter with the usual skill and care which has resulted in substantial progress during the current round. The major element which every trade unionist, his wife and family understands is that prices should not be allowed to rise. We are doing quite well this year in the sense that we have got inflation running at 9 per cent. and it will come even lower. It will be helpful to all trade unionists and their wives if prices do not go up or inflation does not increase beyond that next year and it would be preferable for it to be reduced so that we can be more competitive. That will be my aim, and it will be the basis on which discussions will be conducted with the trade unions.

§ Mr. Ron Thomas
When my right hon. Friend meets the TUC, will he discuss the dangerous and continuing import penetration of finished and semi-finished manufactured goods, the value of which reached almost £19,000 million last year? As it looks as if other industrial countries are not willing to take my right hon. Friend's advice to expand their economies, is there not a real need for selective import controls?

§ The Prime Minister
My hon. Friend does not focus on the fact that there are already selective import controls and that each case must be decided on its merits as it is presented to us. Basically, however, it is far better that the world should have an expansion of trade than that we should all be cocooned inside our own economies. That is the path that I should prefer to tread.