HC Deb 24 October 1978 vol 955 cc901-2W
Mr. Lawson

asked the Chancellor of the Exchequer how many firms are currently being subjected to economic sanctions for having negotiated pay settlements above the 10 per cent. stage 3 limit; how many firms are not now but have at one time been subjected to such sanctions for having negotiated such settlements; what conditions must be fulfilled before economic sanctions are lifted; and how many firms are now being subjected to economic sanctions for having negotiated pay settlements since 31st July 1978 above the 5 per cent. stage 4 limit.

Mr. Joel Barnett

Fifty-five firms are currently subject to discretionary action as a result of paying their employees wage increases in breach of the guidelines for the 1977–78 pay round. Nineteen firms were previously, but are no longer, subject to discretionary action as a result of such breaches. No firms have negotiated pay settlements since 31st July 1978 contrary to the guidelines for the 1978–79 pay round.

I would refer the hon. Member to the Answer I gave on July 31st to my Hon. Friend the Member for Hemsworth (Mr Woodall) regarding the conditions which must be fulfilled before discretionary action ceases.

Mr. David Price

asked the Chancellor of the Exchequer by what parliamentary authority the Government are imposing sanctions upon companies and individuals who give their employees annual pay increases in 1978–79 of more than 5 per cent.

Mr. Joel Barnett

I am not aware that there have yet been any settlements in breach of the guidelines set out in the White Paper "Winning the Battle Against Inflation". However, I would remind the hon. Gentleman of the result of the debate on 25th July.