asked the Prime Minister if he is satisfied with the co ordination between the Departments of Employment and Trade and Industry on the application of phase 3 policies to the public sector.

Yes, Sir.

Does the right hon. Gentleman realise that many thousands of public sector workers are leaving every week because they can get higher wages elsewhere? Will the Government have the sense to modify their counter-inflation policies so that the earnings of miners, gas workers, transport workers and local authority workers, among others, become more attractive, or is it his intention to preside over the decline of the nation's vital services?

There is scope within phase 3 arrangements for the public services to have negotiations about their particular requirements. These are being carried out at the moment.

Will my right hon. Friend give urgent attention to the application of the counter-inflation policy to one element in the public sector, namely, the British Steel Corporation and the Intervention to control its pricing, which is having the effect of driving into the export markets steel supplies urgently needed at home?

This is a matter for the British Steel Corporation to handle.