§ Q2. Sir Knox Cunninghamasked the Prime Minister what progress he has made with his policy of a national dividend.
§ The Prime MinisterThe Government intend to discuss the idea of a national dividend with the Confederation of British Industry and the Trades Union Congress.
§ Sir Knox CunninghamDoes the right hon. Gentleman remember that he referred to the national dividend as
a new concept unique in democracy".
§ Mr. SpeakerOrder. Quotations must not be made in supplementaries.
§ Sir Knox Cunningham—as a unique concept in democracy? Since his remarks received a rather frosty welcome from Mr. George Woodcock, does the right hon. Gentleman still think that it is a practical proposition?
§ The Prime MinisterYes, Sir. The fact that it fell on somewhat stony ground on the first night does not mean that it should not be pursued. This is something which any Government would want to do in the circumstances—to work out how much can be afforded by the nation, not only in wages, salaries and other incomes but also in additions to the "social wage" through an increase in the social expenditure programmes of the Government and to see that the claims on that do not exceed the amount that is available.
§ Mr. DickensMay I press the Prime Minister further on this question? In defining the national dividend, is he now saying that the Government want to see the national dividend based on the real creation of wealth in the country, as measured by a net increase in the gross national product, or is he still of the view that it should be based on some anticipated increase in productivity this year or some ensuing year?
§ The Prime MinisterThis stems originally from the proposal of the T.U.C., which we greatly welcome, of having a discussion each year, I think in the autumn, between the Government, the 448 T.U.C. and the C.B.I. to see how much in total could be afforded for all these purposes. Where I think we had gone wrong under successive Governments in the past is that the total amount of claims on what was available in the country had outrun what was available, and this has led to the grave measures that have had to be taken.
§ Mr. HeathThe Prime Minister has told us a good many times that it is impossible to say what the nation can afford. Does he now mean that he has changed his mind and that he can tell us what the nation can afford by way of growth?
§ The Prime MinisterI did respond, or I failed to respond, to previous questions asked by the right hon. Gentleman the Leader of the Opposition on this issue, but we are getting into the position when this question can be answered. We had to get through the serious difficulties of this past winter. We had to get a balance of payments surplus. Then an answer could be given. However, I would not want to anticipate what I might happen to know, or have reason to think, my right hon. Friend the Chancellor of the Exchequer will say on this subject, dealing with the right hon. Gentleman's question, next Tuesday.