HC Deb 13 February 1962 vol 653 cc1113-4
28. Mr. Emrys Hughes

asked the Chancellor of the Exchequer, in view of the statement in Command Paper No. 1626, Incomes Policy: The Next Step. that Her Majesty's Government's policy is to secure faster economic growth, if he will study economic measures adopted towards this end by other industrial countries, including the Union of Soviet Socialist Republics.

Mr. Selwyn Lloyd


Mr. Hughes

Does the Chancellor recollect that when we were fellow travellers with the Prime Minister in Moscow the Prime Minister made a remarkable speech in which he said that industrial progress in the U.S.S.R. was unparalleled in history? May we take it that he will not rule out a study of economic planning as it has been so successful in the U.S.S.R.?

Mr. Lloyd

The hon. Member has slightly disappointed me in his supplementary question. I thought he wanted me to refer to Mr. Khrushchev's speech on 23rd November, in which he said: The level of wages must correspond to the level of material production achieved by labour productivity. Labour productivity must always be one jump ahead of the growth of wages. Secondly—the hon. Member will remember this, no doubt—Mr. Khrushchev said: Of course, the State is unable to allocate supplementary funds for wages, and consequently one should act within the limits of the wages funds available. The final question Mr. Khrushchev asked was: If we raise wages and the wage funds are higher than the funds of goods what happens then? He was talking to tractor drivers and advocating a wage pause.