§ Mr. Tebbit
asked the Chancellor of the Exchequer if, pursuant to his reply of 20 March to the hon. Member for Chingford, he will list the acts of firm determination by Her Majesty's Government which he estimates have avoided a pay explosion in the private sector since the ending of sanctions on 19 December.
§ Mr. Joel Barnett
The Government's firm determination has been shown in their continuing commitment to responsible fiscal and monetary policies and to the use of cash limits in the public sector; in repeatedly spelling out the consequences of excessive pay settlements for the levels of inflation and unemployment; and in reaching an agreed joint statement with the TUC, setting an inflation target of 5 per cent. in three years' time, which has undoubtedly had a moderating influence on pay bargaining, and which would not have been possible under the policies the Opposition apparently wish to pursue.