minimum profit rate is raised frum 53 to 836, and companies are exempled trom virtually all the restrictions of the 'counter-inflation policy until they reach this level. What this means, most importantly, is that companies are now free to pat up their prices in order to raise their profits to this level.
TROUBLE AHEAD The total effect of these concessions should be to make sure that if the rate of intlation in the international economy eases up over the next year, all of its benefits will flow into the pockets of the capitalist class. On the other hand there is almost to prospect of the pressure of rising prices on working class Jiving standards casing up.
On balance. it would seem that the Tories are gearing up for a period of growing economic difficulty. One of the aspects of Phuise 2 was that it put a certain amount of pressute on firms by forcing them to absorh various costs out of productivity ur reduced profits. Only a very inw rate of profit could win exemplion from this. The main change under Phase 3 has been lo ease back sharply on such burdens for less efficient firms. The reason is simple: che Tories see a period of economic turbulence ahead and. as usual, they are stacking the cards so thatit will be the working class that will have to carry the can. Chris Balfour