HC Deb 01 December 1966 vol 737 cc595-6
6. Sir C. Osborne

asked the First Secretary of State and Secretary of State for Economic Affairs what will be the difference between the present wages standstill and the period of severe restraint that will follow it; how many workers will be affected by it; and under what conditions it will be ended.

Mr. M. Stewart

Command 3150 explains the difference: it is not possible to state the number of workers who will be affected by the revised criteria. Guidance for those negotiating settlements to take effect after 30th June, 1967, will be given after consultation with the Confederation of British Industry, the Trades Union Congress and other interested parties.

Sir C. Osborne

Would the right hon. Gentleman give the House two clear promises? First, will he promise that the period of severe restraint will not be reimposed after next June? Second, will he promise that reflation will not bring inflation?

Mr. Stewart

As I have said in answer to previous Questions, the Government's intent with regard to the timing and nature of reflationary measures is to see that they are not inflationary. As to movement of prices and incomes after 30th June, that is, of course, very closely bound up with the rate of growth which we can then obtain.

25. Mr. Frederic Harris

asked the First Secretary of State and Secretary of State for Economic Affairs what policy the Government propose to pursue after the period of severe restraint.

Mr. M. Stewart

The Government's aim is to pursue a policy for productivity, prices and incomes which will enable the nation to achieve the objectives set out in the Joint Statement of Intent of December 1964 and accepted by representatives of the Trades Union Congress and the employers' organisations.

Mr. Harris

Does the right hon. Gentleman recognise that that does not give much of an answer? Is it not important that he and the rest of the Cabinet realise that employees particularly must know in some detail after the period of severe restraint what the Government's policy is to be if we are to get their co-operation to the degree the Government want?

Mr. Stewart

I have set out on this and other occasions the main line and purpose of our policy. I agree that more detail needs to be worked out, but for that we shall want the consultation we shall have in the coming months.