§ Mr. Tebbitasked the Chancellor of the Exchequer (1) if he will describe the arrangements by which he will inform those responsible for public purchasing policy in local authorities, nationalised industries, other companies within the public sector and universities, which firms have reached pay settlements inconsistent with his policy of 15th July;
(2) to what extent public sector organisations including nationalised industries, educational establishments, local authorities and public boards will be relieved of their statutory financial obligations in order to be free to discriminate in their purchasing policy against firms which reach pay settlements inconsistent with his policy of 15th July;
(3) in what manner firms which have reached pay settlements which are inconsistent with his policy announced on 15th July will be informed of the Government's intention to take this into account in public purchasing policy, the placing of contracts and the consideration of industrial assistance.
§ Mr. Joel BarnettWhere a firm has reached a pay settlement clearly inconsistent with the policy announced on 15th July and contained in Cmnd. 6882 "The522W Attack on Inflation after 31 July 1977", the Department of Employment will ask the firm to adjust the settlement to bring it into line with the policy. If the firm refuses to do so it will be informed by the Department that, in accordance with paragraph 16 of Cmnd. 6882, the Government will take account of the settlement in their public purchasing policy, including the placing of contracts, and in the consideration of industrial assistance. If the settlement is not adjusted, purchasing Departments will withold contracts from the firm wherever practicable, and Departments which sponsor public bodies will ask them, in writing, to do the same. The withholding of contracts is not expected to have an effect on any finacial obligations by which public bodies may be bound.