§ 12. Mr. LordTo ask the Secretary of State for Employment whether he has received any representations from the Confederation of British Industry concerning wage levels.
§ Mr. HowardI have received no formal representations from the CBI, but I am aware of its view that pay settlements need to be more realistic if competitiveness is not to be damaged.
§ Mr. LordDoes my right hon. and learned Friend agree that Labour's proposals for a national minimum wage may seem superficially attractive but would be deeply damaging to business, particularly small business, and to job prospects?
§ Mr. HowardI agree entirely with my hon. Friend, and so does every independent study and assessment that has been made of this matter. As the Leader of the Opposition has joined us, perhaps he will use his influence on the four members of his party who voted last week to cover up the truth by refusing to permit the Select Committee on Employment to conduct an investigation into the true consequences of a national minimum wage.
§ Mr. LeightonIs it not the case that although the wage increases of British workers have come down the benefits of that have been dissipated, and that due to the recession induced by the Government productivity has gone down although it has gone up in Germany and as a result unit labour costs in the year to the second quarter of 1991 went up by 3 per cent. in Germany but by 11 per cent. in this country? With a fixed exchange rate, has not this country badly lost competitiveness?
§ Mr. HowardIt was the hon. Gentleman's casting vote as Chairman of the Select Committee on Employment which last week prevented that Committee from looking into the truth of these matters. If he had been seriously concerned about the competitiveness of British industry, he would have welcomed that inquiry and not blocked it.