HISTORIC PRESS RELEASE : “Pay awards have to be fair and affordable across the board if we are to achieve our long term project” says Alistair Darling [January 1998]

The press release issued by HM Treasury on 28 January 1998.

In a wide ranging speech to the Chartered Institute of Bankers in London tonight, Alistair Darling set out the Government’s achievements since it came into office.  He stressed that it was vital to ensure pay rises are fair and affordable if the country is to enjoy the fruits of long term prosperity.

He said:

“We have been in Government for eight months.  In that time we have put in place the building blocks which will see us through not just this Parliament, but beyond.  We said we would modernise Britain and we are doing that.

We are building the foundations for the future.  Low inflation.  Stability.  Reforming the Welfare State.  We have started to rebuild the education and health services.  Building alliances in Europe where we can influence and shape our destination.  Building together long-term prosperity for this country.

But if we are to succeed, we need to maintain the strict discipline necessary to put the public finances on a sound footing, and keep them there.  We are not going to repeat the mistakes of the past, when the signals were misread.

We are therefore determined to ensure that pay rises are fair and affordable.  In the public and private sector.  It is in no one’s interest if today’s pay rise becomes tomorrow’s mortgage rise.  The worst form of short-termism would be to pay ourselves today at the cost of fewer jobs tomorrow and lower living standards in the future.

The Government’s responsibilities are clear.  But the same responsibility lies fairly and squarely with boardrooms in the private sector.  Every single one of us has the same responsibility.  Pay awards have to be fair and affordable and must be seen to be so – right across the board.  Those in the boardroom must show the same responsibility as those on the shop floor.”