§ 14. Mr. Palmerasked the Minister of Fuel and Power what general directions he has given to the Central Electricity Authority, the Gas Council and the National Coal Board on prices, wages and capital policy; and whether he will make a statement.
§ Mr. Aubrey JonesNone, Sir. I do not think that general directions on these matters are appropriate, but all in these industries should be aware of the importance of steadiness of prices to the national economy and of the fact that wage increases unaccompanied by increased productivity must inevitably lead to higher prices. As to capital policy, the annual capital programmes of the industries are determined, in consultation with the Chancellor of the Exchequer and myself, within the broad limits laid down by Parliament.
§ Mr. PalmerWould the Minister say that the rumours circulating in the Press and elsewhere that the Government were attempting to guide the nationalised industries in these matters are therefore without foundation?
§ Mr. JonesI would not say that such rumours had much foundation in the Answer I have given, but surely, as a result of recent statements by my right hon. Friends the Prime Minister and the Chancellor of the Exchequer, it should be apparent to everybody that the country can ill afford wage increases which are not accompanied by increases in productivity.