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Productivity Gains

Volume 165: debated on Friday 19 January 1990

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To ask the Secretary of State for Employment what is the Government's policy on passing on productivity gains to the workers in the form of pay increases in (a) British-owned firms and (b) foreign-owned firms.

Productivity is a vital influence on the costs and competitiveness of all businesses, irrespective of ownership. Pay increases should not automatically absorb all of the productivity gains made. Resource must be available for improvement of price competitiveness, future investment, increased output and jobs.