Counter-Inflation Policy

Part of the debate – in the House of Commons at 12:00 am on 20 July 1977.

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Photo of Mrs Margaret Thatcher Mrs Margaret Thatcher Leader of HM Official Opposition, Leader of the Conservative Party 12:00, 20 July 1977

The third point on which I hope the Chancellor will be more forthcoming than was the Prime Minister when attempting to answer my right hon. Friend the Member for Farnham (Mr. Macmillan) concerns his attitude to public sector pay claims. I know full well that when the Prime Minister spoke of free collective chaos he was afraid that free collective bargaining in some areas might mean free collective bullying. How does he propose to stand up to that, if it occurs? There are some parts of the public sector for which there are no cash limits.

What does he intend to do, for example, in the nationalised industries? Will he tell the House—and he refused to give an answer to my right hon. Friend the Member for Farnham—whether he intends to obtain more subsidies from the taxpayer's pocket to subsidise increased pay claims in the nationalised industry sector, or whether he intends that it will come from increased prices so that the consumer will pay, or whether he intends that it should all come from increased productivity? How does he intend to persuade that industry to increase productivity? [HON. MEMBERS: "You tell us."] I thought this was the Government's policy. They do not even know what it is all about, and they will not answer. They say "Let us not go into detail because that would fox us".