HC Deb 05 March 1968 vol 760 cc222-3
Q1. Mr. Marten

asked the Prime Minister if he will give another television broadcast to the nation to report on progress since devaluation.

The Prime Minister (Mr. Harold Wilson)

I have no present plans to do so, Sir.

Mr. Marten

If the Prime Minister does eventually decide to treat the nation to another television broadcast, will he clear up the impression, certainly gained by the T.U.C., that the Government were going to rely on a voluntary wages policy, and tell the nation clearly whether or not there will be a wage freeze?

The Prime Minister

My colleagues and I had discussions with the T.U.C. in January, when we went through its report with its representatives, and we indicated the situation in which it might be necessary to press for fuller powers than those relating to a voluntary wage policy.

Mr. Barnett

On the assumption that the recent speech by the Leader of the Opposition was more ill-informed than maliciously intended, might it not be as well to publish the facts in a simple form in a White Paper, together with the independent forecast of our balance of payments figures? Then perhaps would not my right hon. Friend also agree that we do not need psychological measures and that he should not bring in wage legislation likely to be more psychological than effective?

The Prime Minister

I regret that I did not read the right hon. Gentleman's speech in full but I saw the heavy weather he made of the 3¾ per cent. increase in Government expenditure, ignoring the fact that, in four out of the five years he was a member of the Cabinet, Government expenditure rose by a higher figure.

Mr. Maudling

As the Government now appear to be estimating that prices will rise this year by 7½ per cent., will the right hon. Gentleman repeat his statement that the £s in our pockets are not being devalued?

The Prime Minister

The right hon. Gentleman, together with his party and Press supporters, has assiduously fostered this legend. In my broadcast I said that devaluation … will mean that the goods we buy from abroad will be dearer … this means higher prices over a period for some of our imports including some of our basic foods. Perhaps the right hon. Gentleman will note that.