asked the Chancellor of the Exchequer whether control of the money supply is necessarily dependent upon effective control of wage increases; and, if so, if it is his intention that there should be a permanent pay policy.

Control of the money supply will undoubtedly be easier, and the prospects for employment better, so long as earnings grow at a rate consistent with further progress in reducing inflation. As to the second part of the Question, the Government made it clear in paragraph 9 of the White Paper "Winning the Battle Against Inflation "that they favoured a long-term approach. This remains Government policy.