Economy: Alan Walters diary [Younger won on Invergordon; CBI against consumer tax reductions][released 2012]

Document type:	Declassified documents
Source:	Walters MSS (Churchill Archives Centre): WTRS3/1/2
Editorial comments:	Read other entries from this diary. View all Walters documents. The original diary can be studied here
Importance ranking:	Major
Word count:	144
Themes:	Industry, Monetary policy, Privatized & state industries, Pay, Taxation

Monday 6th December 1982

Ravenscraig decision - to keep open

George Younger won - as I knew he would after Invergordon. I did not intervene - it was really a pay-off to George as everyone knew PM rationalised by saying that it cost less to employ them than to pay unemployment benefit.

CBI McDougal, Dermot Glynn etc. - against consumer tax reductions and pro NIS “costs” etc. Against personal tax reductions because they think it is mainly benefits that affect work - and they believe they can fool the workers

Warner Coates - now looks after SDRs for IMF

[And the same day!!] [as Ravenscroft decision] Philippines (ILIGAN) Steel plant - Davy wanted 31% subsidy - beat Japs, Germans etc. I wrote memo opposed. JV [John Vereker] very helpful

Run on stg [sterling] again - spent about £150 m on propping it up.