Thatcher gives a warning on pay

The Prime Minister has repeated her warning that pay rises should not outstrip productivity.

If this happens Britain will not be able to compete properly with its foreign business rivals.

Mrs Thatcher was commenting yesterday after news of the latest jump in inflation—up 0.4 per cent to 7.7 per cent—was announced.

“I am disappointed,” she said, “It means we have to continue with our policy to try to get it down.”

Mrs Thatcher was speaking during a visit to the Broadway Foundation's Barley Wood treatment centre for alcoholism and drug addiction in Wrington, near Bristol.

She said it was important to reduce labour costs in this country as they were higher than in Germany. France and the USA, and affected Britain's competitiveness.

“We have to get our labour costs down. We must ask people not to put up pay more than productivity and to keep the money supply tight for some time.”

Abuse

Mrs Thatcher was at Barley Wood on a fact finding visit prior to an international conference on the drugs problem next year.

She spent 90 minutes touring the 46-place centre, where private treatment costs £145 a day, although up to half the patients are state assisted at a greatly reduced rate.

She met members of staff and patients, including Audrey Walker and Stephen Pulman, both of whom were treated for drug and alcohol abuse and are now counsellors.

Before leaving she said: “It's a remarkable centre. When people come here they have no self esteem, but when they go back into the world they have the knowledge and ability to tackle their problems and this is the greatest medicine of all.”

On her arrival Mrs Thatcher had been greeted by Lieutenant-General Sir James Wilson, president of the trustees of the Broadway Foundation, which is a registered charity, Ernest Harbottle, chairman of the trustees and the foundation's founder, and Alvis Gill, head of treatment.

Local Tory MP Jerry Wiggin and the districts Conservative Euro MP Margaret Daly were also among guests.

Mrs Thatcher also opened the £15 million British Aerospace technical centre at Filton, Bristol, and visited Aztec West, said to be Europe's largest business park. She described it as “an inspiration” .

Mrs Thatcher unveiled a plaque at the park's new Aztec Centre, which contains a bank, shops, a wine bar, taxi service, employment agency and offices.

Bold

Developers Arlington Securities say it is the first such centre to be built at a business park.

Mrs Thatcher said she was impressed with what had been achieved both at the park and with the new centre.

“It is bold, it is vital, it is enterprising, it is thrusting,” she said.

“It is also British and we are right up front in doing this kind of thing.”

Aztec already has 3,000 employees and expects to have 4,500 by the end of 1990 and 7,000 eventually.

Arlington spokesman William Grosvenor said that all but 20 acres of the 157 acre site were now filled.