Mr. Jackson:

I understood that entry into the ERM was Opposition policy. It is common ground among the parties in the House that inflation has to be brought down. Although there is some argument about how one achieves that, I think that everyone accepts that a consequence of any policy to reduce inflation is that the economy will slow down. We have to live with that, but we must try to ensure that the rise in unemployment is minimised. We must also look carefully at wage settlements to ensure that unions and employees do not demand too much and that employers do not award wages that are unsustainable by the business.