§ Q1. Mr. Ridleyasked the Prime Minister when he expects next to meet the Trades Union Congress.
§ The Prime Minister (Mr. James Callaghan)I hope to meet the general council of the TUC tomorrow.
§ Mr. RidleyDoes the right hon. Gentleman recall the social contract whereby he conceded long-term privileges to the trade union movement in return for a guarantee of what may be called industrial peace in our time, since when there have been 34 days of industrial chaos following his return from sunny Guadeloupe? Will he therefore eschew entering into a concordat with the TUC? Why does he not stop feeding the hand that bit him?
§ The Prime MinisterThe social contract led to a period of substantial industrial peace. The number of days lost through industrial disputes between 1975 and 1978 were far fewer than those lost during the lifetime of the Conservative Administration, especially during its last year. Secondly, the effect of the social 952 contract was to enable us to overcome some of the follies of the previous Administration through its excessive use of money supply, which led to inflation. Thirdly, it enabled us to ensure that low-paid workers, both through the £6 a week increase and the 5 per cent. increase, had a greater improvement in their standard of life than some had ever obtained before by free collective bargaining.
§ Mr. David SteelWhen the Prime Minister meets the Trades Union Congress tomorrow, will he point out to it some of the similarities—I put it no higher than that—between the proposals in the pamphlet "A Better Way" produced by some trade union leaders and the proposals published this morning in the CBI's booklet on pay policy? Will he tell the TUC that, although he will encourage the further development of that consensus, at the end of the day Parliament cannot subcontract its responsibilities on these matters to any outside body, and that he will bring the consensus back to the House and place whatever he has before us?
§ The Prime MinisterI am glad to say that there is much reflection and thinking about the way in which we handle wage claims and the need for establishing proper relativities and comparability. I welcome such views from wherever they come, from the CBI or members of the TUC. I hope that we are all agreed that the present method does not look as if it is being very satisfactory. I hope that the position of Parliament will be safeguarded. Initially, I should like to see an analysis made between the Government and all interests concerned, whether they be unions, employers, managers or anybody else, on what the economy can do and the likely consequences for wages, investment and consumer expenditure.
§ Mr. BidwellHas my right hon. Friend had a chance to study the Tribune Group's wise statement on wages and inflation? Will he accept that many of us believe that if he accepts the message contained in the statement he can still be Britain's best Prime Minister after the next general election?
§ The Prime MinisterI am grateful for that testimonial. I will ask my hon. Friend to give me a signed statement to that effect. I have not yet had a chance of 953 studying this latest series of proposals. I would only say that, if the level of wage settlements gets out of hand, it will not be possible to accelerate further the growth of the economy. These two things are just not possible if one is to keep a stable currency and ensure that the balance of payments does not get out of hand, and if we are not to lose our competitive position. There must be some restraint in these matters. We cannot do it all.
§ Mr. MartenOn a more optimistic note, can the Prime Minister give any indication when he sees an end to his winter of confrontation?
§ The Prime MinisterThere is no confrontation that I am aware of. It takes two to effect a confrontation. The Leader of the Opposition has already declared that she will confront anybody. My view is that the best thing for this country is to try to secure the support and the agreement of the people of this country. That is the right way forward.