HC Deb 13 February 1978 vol 944 cc60-1W
Mr. Skeet

asked the Chancellor of the Exchequer if he will publish the model clause relating to the 10 per cent. limit on pay increases which it is intended should be placed in all Government contracts with firms in the private sector.

Mr. Joel Barnett

My right hon. Friend the Secretary of State for Prices and Consumer Protection placed them in the Library on 7th February.

Mr. Tebbit

asked the Chancellor of the Exchequer if it is his policy that (a) local authorities, (b) nationalised industries and (c) Government owned or controlled companies should use a form of contract like that of Her Majesty's Government to ensure that their suppliers are observing the Government's incomes policy.

Mr. Kenneth Clarke

asked the Chancellor of the Exchequer whether the new counter-inflation conditions for Government contracts will be applied to all contracts placed by Government Departments, local authorities, nationalised industries, health authorities and universities, respectively.

Mr. Joel Barnett

The Government will, of course, embody the revised contract conditions in their own contracts. We shall also disseminate the clauses widely throughout the public sector and shall take such steps as seem appropriate to encourage those responsible to consider making use of these or similar provisions in their own contracts.

Mr. Kenneth Clarke

asked the Chancellor of the Exchequer whether the new system of putting counter-inflation conditions in Government contracts will replace entirely and bring to an end the system of blacklisting particular companies for contracts placed by particular Departments.

Mr. Joel Barnett

No. It would be unreasonable to put a company to the trouble of tendering where there was no question of letting a contract to that company.

Mr. Rost

asked the Chancellor of the Exchequer if his Department has circulated a memorandum of blacklisted companies; and what directives it contained on tendering and purchasing policy.

Mr. Joel Barnett

The Treasury from time to time circulates Departments with the names of firms, and instructs Departments to arrange that no tenders are invited from or contracts placed with such firms, on the ground that they have breached the Government's pay guidelines.

Mr. Lawson

asked the Chancellor of the Exchequer, further to the Written Answer given on 9th February to the hon. Member for Blaby, when he expects the discussions with the CBI and the chamber of commerce on the publication of the names of firms on black lists to reach a conclusion.

Mr. Joel Barnett

These consultations will be completed as soon as possible.

Mr. Kenneth Clarke

asked the Chancellor of the Exchequer whether, after consultation with the Confederation of British Industry and chambers of commerce, he will state what instructions or advice he sent to universities about the placing of contracts with companies in breach of the Government's pay guidelines; and whether he will list the companies named in those instructions or advice.

Mr. Joel Barnett

The consultations will take a little time to complete.

Mr. Arthur Lewis

asked the Chancellor of the Exchequer whether his promise to reveal the names of companies against which sanctions are to be taken will be agreed to after discussions with the companies and the trade unions concerned.

Mr. Joel Barnett

I would refer the hon. Member to the reply given by my right hon. Friend the Prime Minister on 7th February to the right hon. Member for Jarrow (Mr. Fernyhough)—[Vol. 943, c. 1232–3.]