Britain’s inflation: unions raise hopes

Press, Volume CXII, Issue 33062, 1 November 1972, Page 17

Britain’s inflation: unions raise hopes

(N.Z.P.A.-Reuter—Copyright)

LONDON, October 31.

The tripartite talks in London on ways to curb Britain’s inflation are still alive today, and buoyed by a union pledge to consider further the Government’s proposals on wage restraints.

Union leaders in conference with industrial and Government leaders promised last night to consult the general council of the Trades Union Congress about holding down wage increases in return for the pegging of price increases.

This has prompted optimism that a voluntary agreement is, after all, still possible. After the T.U.C. general council’s meeting tomorrow, the three sides will meet again, and will continue their talks on Thursday and Friday, if necessary, to achieve a result.

Union agreement to discuss means of holding down pay rises came after a strong statement by the Prime Minister (Mr Heath) that the Government could not accept any hold-down of prices without a corresponding restriction on wage increases. He added that the issue of

restraints, either voluntary or statutory, applying to both prices and wages was so fundamental that it would be pointless to continue the discussions until the union answer to the question was known.

Yesterday’s meeting—the eighth in a series which began in July—was convened amid a general mood of pessimism that the talks would collapse because of the union leaders’ insistence, last Thursday, on a price freeze with no restriction on pay increases.

Mr Heath is believed to have been anxious for a con-

elusion to be reached yesterday because of the official opening of Parliament today, and because a 15-month agreement by industry to hold down prices voluntarily expires at midnight tonight. Mr Campbell Adamson, who is representing the Confederation of British Industry at the talks, said last night that his members would not be told to continue to hold down their prices, but that he felt they would behave responsibly, and not do anything to make a settlement more difficult. Mr Jack Jones, one of the union negotiators, commented: “The position is still very much 50-50—it is still sticky.” Sterling fell again on the international money markets yesterday, reflecting general uncertainty over the problem of Britain’s inflation. The pound closed at $U52.3312, a drop from its opening price yesterday of $U52.34.