HC Deb 06 July 1967 vol 749 cc1970-1
13. Mr. Bruce-Gardyne

asked the First Secretary of State and Secretary of State for Economic Affairs what is his Department's latest estimate of the increase in hourly wage rates between 1st July, 1966, and 31st December, 1967; and what was the increase in hourly wage rates over the corresponding period of the previous economic cycle, 1st July, 1961, to 31st December, 1962.

Mr. Frederick Lee

The figure of about 6 per cent. which my right hon. Friend gave to the House on 22nd March is the best estimate we have of the likely increase in the hourly wage rate index over the 18-month period July, 1966 to December, 1967. The increase in hourly wage rates over the period July, 1961, to December, 1962, was 6.4 per cent.

Mr. Bruce-Gardyne

Does the Minister agree that this shows that the whole paraphernalia of the compulsory prices and incomes policy has served no useful purpose whatsoever?

Mr. Lee

It shows precisely the opposite, because more than half of these increases in wage rates come from agreements negotiated on or before 20th July last year, and therefore over the 18-month period there has been a very marked reduction as compared with the period before.