HC Deb 08 February 1979 vol 962 cc552-3
Q2. Mr. Whitney

asked the Prime Minister when he plans next to meet the Confederation of British Industry.

The Prime Minister

I met representatives of the CBI at a meeting of the National Economic Development Council yesterday and further meetings will be arranged as necessary.

Mr. Whitney

At the next meeting, will the Prime Minister invite the CBI to explain to him the grave damage to British industry and to those of us who depend on it and work in it which will be caused by the latest massive rise in interest rates, due to the incompetence of his Government?

The Prime Minister

The last part of the question will be a matter of judgment and argument. As to the first part, there is no doubt that high interest rates, if sustained for a considerable period, are damaging to industry and especially to small firms. That is one reason why it is important that we should maintain our insistence on keeping inflation under control. That, in its turn, will ensure higher employment. If we allow all these things to get out of control, there is no doubt that unemployment will increase.

Mr. Cryer

Will my right hon. Friend explain to the CBI, when it seeks legislation to control the unions, that the experience of the Opposition when in Government was to succeed in losing 23 million days in 1972? That must be an all-time record. Will he accept and also inform the CBI that its opposition to industrial democracy and to planning agreements helps to produce the industrial situation that we face today? Does he also accept that the basic solution to industrial problems is to provide decent basic wages and working conditions?

The Prime Minister

The answer to the last part of the question must be "Yes". As regards the first part, we had some discussion at NEDC yesterday about what is called in shorthand "industrial democracy". There is a difference between the Government and the CBI on the methods that should be employed. I am bound to tell the House that the CBI representatives said officially that they believe it is important that all CBI members should make available as much knowledge as possible of firms' investment programmes, profitability and future programme. There were complaints that a number of companies were not doing that. The CBI said that, if it could use its influence to ensure that companies did co-operate, it would do so. But there is still this difference over the method by which the Government would hope to proceed on industrial democracy.

Mr. Lawrence

Can the Prime Minister tell the House which Conservative trade unions are currently on strike or taking industrial action?

The Prime Minister

No, Sir.