HC Deb 24 May 1962 vol 660 cc661-2
23. Mr. Awbery

asked the Chancellor of the Exchequer what new consideration he has given to the need for a freeze on profits and dividends as a means of helping to deal with inflation and economic problems.

Mr. Brooke

My right hon. and learned Friend has asked for continued restraint in profits and dividends. He does not think that a freeze "on individual companies would be desirable or practicable.

Mr. Awbery

Is the Chief Secretary aware that many of us are of the opinion that he has a unilateral mind— a one-way street— when dealing with inflation? He is attacking the workers, but has his attention been drawn to the fact that landowners are increasing the price of their land, property owners are substantially increasing their rents and moneylenders and banks are increasing their rates? Is he not aware that this is an arrogant organised body which is using its political power to gain a bigger share of the national wealth?

Mr. Brooke

The only unilateral feature of the situation at present is that wages and salaries increased materially last year whereas profits fell.

Mr. Callaghan

How does the Chief Secretary to the Treasury reconcile that Answer with the Chancellor's repeated statements that his wages policy has been a success? The two things surely are contradictory. [HON. MEMBERS:" No."] If wages and salaries have increased, how can the policy have been a success at the same time? The whole object of the policy is to keep wages and salaries down. Is not the right hon. Gentleman aware that the cost of living has increased during the last twelve months by 6 per cent? How does he hope to get people to accept an increase in wages limited to 2½ per cent?

Mr. Brooke

One of the reasons for my right hon. Friend's policy and his measures of last July was the excessive rise in wages and salaries in the earlier part of the year. It is that rise which is the main cause of the increase in the cost of living this year.

Mr. Callaghan

Is the right hon. Gentleman aware that his last answer is wholly inaccurate and that the chief causes of the rise in the cost of living are Government measures, through the Rent Act, through increases in electricity charges as a result of their instruction, through increases in prices brought about by the regulator, and in a number of other ways? Is the right hon. Gentleman aware that it is the Government who are responsible for putting up prices today?

Mr. Brooke

That is entirely untrue and I would recommend the hon. Member to examine the facts.

Mr. Ridsdale

If any controls are needed in the private sector, would not my right hon. Friend agree that far the best method would be to lower tariffs and bring in greater competition?

Mr. Brooke

That is certainly one of the courses that require consideration.