§ 7. Sir William. Davisonasked the Minister of Labour whether his attention has been drawn to recent legislation in Canada to provide a flat rate bonus in aid of wages for each point increase in the cost of living beyond a fixed statutory wage; and whether he has considered the desirability of similar legislation?
§ Mr. BevinIn certain industries in this country changes in wage rates are regulated in accordance with the cost-of-living index number. This is a matter of agreement in the particular industries, and I do not think it either necessary or desirable in our own circumstances to attempt to make such a system universally compulsory and, still less, to fix by Statute the basic rate of wages to which cost-of-living additions are to be made.
§ Sir W. DavisonIn view of the very large subsidies given by the Government in order to stabilise the cost of living, as indicated by the Chancellor yesterday, would it not be a good plan and save many heartburnings if in the case of demands for increased wages owing to increased cost of living a fixed increase in wages was made proportionately to any rise in the cost of living?
§ Mr. BevinThere are so many things that enter into the fixing of wages that I am absolutely opposed to any attempt to fix them by Statute.
§ Mr. GallacherWould the Minister consider fixing profits and interest to the cost of living in the same way as it applies to the working class?