§ Mr. Michael Lathamasked the Chancellor of the Exchequer (1) whether he intends that foreign-owned companies, with headquarters outside the. United Kingdom, should be required to sign the new counter-inflation contractual conditions; and how he envisages these will be enforced;
(2) whether he intends that companies owned by foreign nationals, and operating from other EEC countries, should be required to sign the new counter-inflation contractual conditions; and how he envisages these will be enforced.
§ Mr. Joel BarnettSuch a company will usually be required to sign a contract with the new counter-inflation conditions to cover the eventuality that the company or its sub-contractors will have employees to whom the Government's pay policy applies. Enforcement of the conditions will be in the hands of the Government who will be in a position to terminate the contract or to cease making further payments under, for example, a variation of price clause, if a company fails to comply with the pay policy as regards any such employees.