HC Deb 08 April 1965 vol 710 cc650-2
28. Mr. Ian Lloyd

asked the First Secretary of State and Secretary of State for Economic Affairs what estimate he has made of the current underlying rate of increase in productivity; how this compares with the major wage claims outstanding; and if he will make a statement.

29. Mr. Biffen

asked the First Secretary of State and Secretary of State for Economic Affairs if he will list the six major wage claims outstanding; and, in respect of such claims, what annual wage increase would be consistent with the present underlying rate of increase in productivity.

Mr. George Brown

The six largest groups of workers with current wage claims are the ancillary workers in the National Health Service, workers in the retail co-operative societies, workers in the shipbuilding and ship-repairing, workers in general printing and provincial newspapers, workers in unlicensed places of refreshment and postmen. I understand that a claim is also about to be submitted for coalminers. On the relation of wage increases to the underlying rate of increase in productivity, perhaps the hon. Member would be good enough to await the statement I shall be making after the end of Questions.

Mr. Lloyd

Is the right hon. Gentleman aware that whereas the economic magnitude he described as the total of wage claims outstanding may possibly be determined within plus or minus 1 per cent., the underlying rate of increasing productivity, according to the best authorities, is determinable only within plus or minus 5 per cent.? How does the right hon. Gentleman propose to deal with this dichotomy?

Mr. Brown

I wish to heaven that the situation was as simple as that.

Mr. Lloyd

I beg to give notice that, owing to the unsatisfactory nature of the reply, I shall raise the matter on the Adjournment at the earliest opportunity.

30. Mr. Onslow

asked the First Secretary of State and Secretary of State for Economic Affairs if he will take steps to ascertain the number of outstanding wage claims for salaried workers; and what estimate he has made of the extent to which the granting of such claims would result in rising prices.

31. Mr. Biffen

asked the First Secretary of State and Secretary of State for Economic Affairs if he will take steps to ascertain the number and nature of outstanding wage claims by salaried workers.

Mr. George Brown

I am aware of current claims covering a little under 1½million salaried workers. Many salaries are, however, determined by domestic negotiations and it would be impracticable to obtain information about them all. The effect of these claims on prices will depend not only on the size of pay increases actually given but also on the extent to which they can be absorbed by employers or offset by improved efficiency.

Mr. Onslow

Does the right hon. Gentleman not accept, in the light of his own reply, that this is a field of which extremely little is known and that such efforts as he is attempting to make are virtually useless in the light of his ignorance?

Mr. Brown

That seems to me a remarkable comment. [An HON. MEMBER: "Sensible."] It may well be so; nevertheless, we are making an attempt to deal with it, which was never made before.

Mr. Biffen

Is the right hon. Gentleman aware that that is an extremely pertinent question? Is he aware that it is a developing trend that salaries, as opposed to hourly wages, comprise an increasing amount of the total national wage bill? Will he, therefore, set in train some inquiries to see whether or not he can obtain the information which he does not now possess? Will he tell the House whether he regards the absence of this information as having any seriously detrimental effect on his proposed incomes policy?

Mr. Brown

I am sorry, but it sounds to me as if hon. Gentlemen opposite have not been following what is happening. We are making exactly these inquiries. We are dealing with this vast gap in the situation which hon. and right hon. Gentlemen opposite left behind them, but I do not share the venom which they seem to feel when they talk about salaried workers.

Mr. Biffen

Owing to the unsatisfactory nature of the reply, I beg to give notice that I shall raise the matter on the Adjournment at the earliest opportunity —without venom.