HC Deb 20 December 1965 vol 722 cc1685-6
62. Mr. Higgins

asked the Minister of Labour what steps he proposes to take to eliminate the inflationary effect of national wage agreements.

Mr. Thornton

This is one of the purposes of the prices and incomes policy.

Mr. Higgins

But is it not a fact that the prices and incomes policy has failed completely to stop inflation in this country, and is it not high time that the Minister of Labour in fact co-ordinated with the First Secretary of State in order to establish full regional differentials?

Mr. Thornton

It would appear that the hon. Gentleman seems to get some satisfaction out of what he calls the failure of the incomes and prices policy—[HON. MEMBERS: "No:]—but I would point out to the hon. Gentleman that the increase in weekly wage rates in the last 12 months is less than the increase in weekly rates in the preceding 12 months under the hon. Gentleman's Government. What has happened, of course, is that we have been involved in a hours reduction cycle, a cycle which comes along about every 10 years, and had it not been for that rises would have been much less.

Sir K. Joseph

Yes, but is the hon. Gentleman not aware that there is widespread disquiet about demarcation—I will not say disputes—issues between the right hon. Gentleman the Minister and his right hon. Friend the First Secretary, and that my hon. Friend's Question is addressed to a very serious subject? We hope that the Government will concert their attitude to inflationary wage claims better in future than they have in the past.

Mr. Thornton

The right hon. Gentleman's question is completely hypothetical and it is one which I do not accept for a moment. I think the prices and incomes policy will succeed, and my Ministry will make its contribution.

Mr. Mawby

Is the hon. Gentleman aware that indeed no one on this side of the House gets any satisfaction from the fact that it appears that the prices and incomes policy is not working, and will he really apply his mind to trying to get rid of this apparent dichotomy between the First Secretary of State and the Ministry of Labour in finding a solution to this problem?

Mr. Thornton

The exposition of the hon. Gentleman is again, I think, indicative of the hypothetical nature of these questions by hon. and right hon. Members opposite.