Sir Terence spells it out
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SIR Terence Beckett, director of the CBI, has written to chief executives of the CBI this week, stating why he met the Shadow Chancellor Mr Peter Shore last week.
Sir Terence says that he had "no illusions about Mr Shore's intentions." Mr Shore wanted to acquaint himself with the full details of the CBI's Quarterly Survey. "We gave him this opportunity," says Sir Terence.
The CBI does not want to associate itself with the Labour Party policy of injecting "large doses of demand into the economy."
At a subsequent meeting with the Chancellor, Sir Geoffrey Howe, the CBI submitted its economics proposals. They include further cuts in interest rates, National Insurance Surcharge and business rates. It also wants more public spending, though this must be strictly controlled.
The CBI also seeks increased investment in the infrastructure "to help the construction industry which has suffered twice as much as the manufacturing industry in this recession."
Sir Terence argues that this would not increase imports nor would it increase public spending. The private sector has already pointed out to the Government that it could bear the capital cost of such a project.