Below is the text of Mr Major's response on Pay Rises made on 8th June 1989 in the House of Commons.
Mr. Cohen To ask the Chancellor of the Exchequer what information he has on the pay rises awarded to directors in the last period for which figures are available, if he will indicate the economic effect of all workers having a similar pay rise this year; and if he will make a statement.
The Chief Secretary to the Treasury (Mr. John Major) Pay is for the parties involved to agree and it is not for the Government to intervene.
Mr. Cohen What a cop-
Mr. Major I am bound to say that I think that the hon. Gentleman has a rather limited view of directors. Contrary to his vivid expression, the vast majority are able, efficient and effective, and we need the best management. Notwithstanding that, I have never justified wage or salary increases that are unjustifiable, and I do not do so now. It is not, however, for me to determine what is or is not justifiable in that respect.
Mr. Bill Walker Does my right hon. Friend agree that there are only two resources in any company -
Mr. Major My hon. Friend makes his point extremely clearly, but I repeat that I am not directly responsible for or concerned with the matter. Pay is a matter for those who negotiate and determine it, and it is not for the Government to intervene.