asked the Secretary of State for Industry what plans he has for discussing with the motor industry the implications of Government sanctions against motor manufacturers who conclude pay settlements outside the Government guidelines.

None, Sir.

In view of the likely pay settlements to be concluded at Ford and at Vauxhall, will the public sector procurement of motor cars depend upon the delivery performance of BL and the preparedness of the Government to sanction further imports?

We had better wait and see what arises out of the negotiations which I understand are taking place. The only thing that I need to say to the hon. Gentleman today is that he will have seen paragraph 25 of the White Paper, which was laid before the House in July by my right hon. Friend the Chancellor of the Exchequer in which it was said:

" The Government will, if necessary, take account of any failure to observe the guidelines in exercising its discretion in the fields of statutory assistance and other appropriate discretionary power."

Will my right hon. Friend say whether his Department has made any representations to Ford about its pricing policy over recent years. The company has increased its prices over a number of years when it has not been under considerable wage pressure.

I have not made representations to Ford, but my right hon. Friend the Secretray of State for Prices and Consumer Protection has been in touch with the company about this matter. I do not know whether it is possible for Ford to give any precise information, but my hon. Friend will recall that from this Dispatch Box a few days ago my right hon. Friend the Prime Minister invited Ford to make known publicly what its prices policy would be.

But are there or are there not to be sanctions?

We had better wait and see how the negotiations—[HON. MEMBERS: "Oh."]. Oh, yes. The negotiations have not finished. It is our hope that the negotiations will result in a settlement within the guidelines. When the negotiations are complete, the Government will take a view of the situation in the light of paragraph 25 of the White Paper.

Is there a system of sanctions of which industry and trade unions can be made aware in their negotiations?

The White Paper makes the matter absolutely plain, and the right hon. Gentleman knows that we took discretionary action against companies during what was known as phase 3.