§ 32. Mr. Geoffrey Lloydasked the Minister of Labour if he is aware that the last report of the National Incomes Commission, Command Paper No. 2583, stated that the elimination of payment by results would slow wage drift; and what is the policy of Her Majesty's Government on this matter.
§ Mr. GunterIt is widely accepted that payment by results schemes can cause undesirable wage drift unless they are carefully worked out and periodically reviewed to take account of technological or other changes in methods of production. On the other hand, it would be wrong to condemn the system as a whole: properly used it can have beneficial effects.
It is, of course, important that those responsible for negotiating payment by results schemes should do so with due regard to the national objectives for productivity, prices and incomes.
§ Mr. LloydWould not the right hon. Gentleman agree that, despite the initial suspicions of the trade unions, the National Incomes Commission has produced a valuable and constructive report which should help the new National Board for Prices and Incomes in its work?
§ Mr. GunterI suggest that we all keep an open mind on a very complex question.