HC Deb 02 February 1967 vol 740 cc759-62
34. Mr. Winnick

asked the First Secretary of State and Secretary of State for Economic Affairs if he will now make a detailed statement on Her Majesty's Government's policy on incomes after the end of the present 12-months' period.

38. Mr. Channon

asked the First Secretary of State and Secretary of State for Economic Affairs when he intends to publish a White Paper dealing with the Government's prices and incomes policy after 1st July.

44. Mr. St. John-Stevas

asked the First Secretary of State and Secretary of State for Economic Affairs whether he will make a statement of Government intentions on the incomes policy it will pursue after the period of severe restraint ends in July.

48. Mr. Stratton Mills

asked the First Secretary of State and Secretary of State for Economic Affairs if he will make a detailed statement on Her Majesty's Government's policy on incomes and dividends after the end of the period of severe restraint.

Mr. Oram

This is a matter to which we are constantly giving attention, in co-operation with my right hon. Friends. They, in fact, participated in the Edinburgh Conference to which I referred in my original Answer.

Following is the information:

The Chancellor of the Duchy of Lancaster (Mr. Frederick Lee)

Consultations are now taking place with the Confederation of British Industry and the Trades Union Congress about the criteria which should govern prices and incomes behaviour after the period of severe restraint. The Government will make an announcement as soon as possible.

Mr. Winnick

Is my right hon. Friend aware of the deep concern felt by many wage and salary earners and the trade union movement in this matter? Could he give a pledge that the present freeze will not be extended beyond July, and will he deny that there will be crippling powers which would undermine trade union normal collective bargaining?

Mr. Lee

There is no question of extending the freeze after this particular period. We are in consultation with the C.B.I. and the unions on the other matter.

Mr. Stratton Mills

Will the right hon. Gentleman confirm that if Part IV lapses in July this year and needs statutory authority to extend it, he will give a definite pledge in relation to his earlier Answer that it is not intended to introduce legislation to extend in any way Part IV?

Mr. Lee

As I tried to intimate, the general principle is that we consult first and decide after.

Mr. Orme

As the Minister knows, the T.U.C. has already made its views very clear on this matter, and I understand the C.B.I. has as well. Therefore, what are the Government waiting for now in their own declaration?

Mr. Lee

Despite the admiration we all feel for the C.B.I. and the T.U.C., I feel sure that my hon. Friend would not suggest that they had taken over the government of the country.

Sir J. Rodgers

Whether compulsory wage fixing is continued or not, is the right hon. Gentleman aware of the deep dissatisfaction that is felt at the moment about the exemption of large classes of wage-earners whose salaries are fixed by annual increments? Whatever system follows the present system, will he do something to remove this anomally which is annoying millions of workers?

Mr. Lee

I quite agree that the system of free collective bargaining has produced anomalies of that type. We seek to remedy them by our policy.

Mr. Heffer

Further to the point made in the question by my hon. Friend the Member for Salford, West (Mr. Orme), is my right hon. Friend aware that if the Government continue to pursue their policy as they have done, the trade union movement will withdraw their support and there will not be a Labour Government afterwards? [HON. MEMBERS: "Hear, hear."]

Mr. Lee

Hon. Members opposite seem to think that that is the only chance they have of getting rid of a Labour Government. Already in my Answers I have explained that we are in the closest contact with the T.U.C. and the C.B.I., and I am quite certain that as a result we shall get the right answer.

Mr. Peyton

Is the right hon. Gentleman aware that Government utterances on this subject seem to pile confusion on obscurity? Can he explain what his right hon. Friend the Leader of the House meant by his reference to new experiments between State planning and collective bargaining, as it seems humbug to us?

Mr. Lee

I know that the party opposite is adept at producing confusion. We must point to the fact that in the last six months of this Government's policy living standards have been maintained at a more stable level than in any period prior to that.

Forward to