asked the Chancellor of the Exchequer (1) what criteria he uses when deciding with whom he will hold discussions relating to the third stage of the Government's incomes policy;(2) whom he intends to consult during discussions relating to stage 3 of the Government's incomes policy.

The current round of voluntary pay policy is based on TUC guidelines. In considering what should follow the current round it is clearly appropriate for the Government to have discussions with the TUC, and with the CBI which represents employers. I am sure that we are all very willing to receive written views from other bodies or individuals.