Healey’s counter-strike will cost Ford millions

Press, 30 November 1978, Page 9

Healey’s counter-strike will cost Ford millions

| NZPA-Reuter London : | Ford of Britain said 1 yesterday that it expected to lose up to £IOOM in Govern- • ment vehicle orders under 1 sanctions announced by the 1 Chancellor of the Exchequer 1 (Mr Denis Healey). : After Ford’s award of pay : rises worth 17 per cent to ( its 57,000 workers, Mr Hea-|' ley told Parliament that the!; Government would place no? orders with Ford for 12; months, and was “inviting” j 1 the huge State-owned in-j' dustries to do the same. p Ford sells about 25,000 ve-! 1 hides annually to the State. I Its chairman, Sir Terence!! Beckett, called the decision!] “iniquitous.” He said theji company would fight to re- p store the damage, and: “Well

are never going to become ap lame duck.” : The Prime Minister (Mr! James Callaghan) had long:t threatened that his Labour! Government would act j ’ against the nation’s biggest!: seller of cars, as it has 1 ; against lesser employers, if; it breached the 5 per cent 11 (“guideline” limit on pay? (rises of Britain’s anti-in-! flation policy. Ford had stood out during! (the nine-week strike, which! | cost it more than £4OOM |($74OM) before the settle- i ment. I There was speculation that!: !Ford vehicle price rises; ! might be restricted by the (Government in the next 12:! months, although Sir Te-j Irence had assured the Guv-"

lernment that Ford would not seek to pass on more than a (five per cent wage-bill rise (to the customer. I Another possible sanction would be the withdrawal of (any State financial assistance. i The Labour Government is (backing Ford’s huge new I European engine plant at Bridgend, South Wales. This (plant, in an area of high [unemployment, is a favouri ite project of the Prime Minister, and financial support .is expected to continue. , The decision unleashed a [storm of anger from the ! Conservative Opposition. Jrom the Confederation of (British Industry, and even (from some Labour supporters.