Engagements

Part of Oral Answers to Questions — Prime Minister – in the House of Commons at 12:00 am on 27th July 1989.

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Photo of Mrs Margaret Thatcher Mrs Margaret Thatcher The Prime Minister, Leader of the Conservative Party 12:00 am, 27th July 1989

I am sure that my hon. Friend and I agree that higher performance and higher productivity at all levels merit higher rewards. The point of having higher productivity is to enable one to achieve lower unit costs, which enables one to give higher wages because of higher effort. That is why we have profit-sharing schemes and performance-related pay. I agree with my hon. Friend that when the priority is to control costs and get down inflation, business leaders have a particular responsibility to lead by example, and I hope that in future they will continue to do so.