§ Mr. Arthur Lewisasked the Chancellor of the Exchequer to what extent he has received promises of offers of support from the Confederation of British Industry or the Institute of Directors to the Government's 6 per cent. salary and wage cash limits; and to what extent these organisations have indicated to him the intention to implement a similar limit with regard to company directors and others in membership of, and associated with, these organisations.
§ Mr. BiffenThe provision for increases in earnings within cash limits was determined by the Government's public expenditure decisions. It is for employers to negotiate pay settlements within the funds available to them. This applies equally in the public and private sectors. The Confederation of British Industry and organisations representing senior management have expressed strong support for the Government's view that excessive pay increases are damaging to the economy, and must inevitably lead to a wholly unnecessary increase in unemployment.