HC Deb 14 March 1968 vol 760 cc1608-10
Q1. Mr. Hunt

asked the Prime Minister whether he will make a Ministerial broadcast to clarify the effects of devaluation of the £ in relation to its domestic value in the light of the most recent information concerning prices.

The Prime Minister (Mr. Harold Wilson)

I dealt with this Question on two successive Questions Days last week, Sir.

Mr. Hunt

I am sure that we all appreciate the Prime Minister's reluctance to give a second television broadcast on devaluation while he is still trying to live down the first one. But does he not feel that he owes an apology and an explanation to those who now find that the £ in their pockets and purses is buying less and less every day?

The Prime Minister

I gave the facts last week about what I said, and I quoted what I said about prices rising. If the hon. Gentleman still cannot understand it, or if it frustrates his party's political myths, that is no affair of mine.

Mr. Maudling

Does the right hon. Gentleman recall that, in answer to a question of mine last week, he denied that the Government were expecting a 7½ per cent. increase in prices this year? Has he had a chance to refresh his memory on the first part of the Defence White Paper, which is based on this precise calculation?

The Prime Minister

I am well aware that the right hon. Member for Wolverhampton, South-West (Mr. Powell), the shadow Defence Minister, did some calculations for himself and reached that conclusion. My right hon. Friend and other right hon. Friends have been through this very carefully. If the Opposition had wished to raise the matter in the defence debate, they would have had a full answer, and would have been shown that the calculations were wrong.

Q7. Mr. Ian Lloyd

asked the Prime Minister what discussions he has held with Trades Union Congress leaders concerning the economic situation in relation to wages and prices since devaluation of the £; and if he will make a statement.

The Prime Minister

I have had two meetings with the Trades Union Congress Economic Committee to discuss the T.U.C. Economic Review, including wages and prices. I referred to these discussions in my speech of 18th January in the debate on public expenditure.

Mr. Lloyd

Does the Prime Minister realise that what he is saying amounts virtually to an extension of Gresham's Law from the monetary sphere to the sphere of Prime Ministerial statements? Is he not aware that the mood of the country is that the public now feels itself to have been offered "40 million reasons without a single excuse" for the demonstrably lamentable economic performance?

The Prime Minister

That sounds like a good by-election speech, but it did not have to do with the Question on the Order Paper. I reported very fully to the House on 18th January about my talks with the Trades Union Congress. If the hon. Gentleman was listening on that occasion he would know the importance of those discussions.

Mr. Sheldon

Is my right hon. Friend aware that one of the problems which worry a number of us is that there may be excessive optimism as to the success which can be entertained here and so limit the action which is necessary? Is he further aware that it would be a great shame if the opportunity were not taken fully to make use of the effects of devaluation and we were to have a wave of industrial unrest which would limit the results which could be expected?

The Prime Minister

My discussions with the T.U.C. were, of course, at that time in the context of the proposals which the T.U.C. was putting to me in the discussions at the end of last month. I indicated in this context what might be needed on the part of action by this House to reinforce those particular proposals, and my right hon. Friend will be meeting the T.U.C. again next week.

Mr. Maudling

Will the Prime Minister tell the House what prediction about future movement of prices he placed before the T.U.C. leaders?

The Prime Minister

No predictions were placed before the T.U.C. leaders about further movement of prices, but I understand that there may well be discussions about economic subjects next week. Perhaps there might be an opportunity of discussing those things then.

Mr. Heffer

In view of the fact that the executives of the trade unions accepted by a majority the document placed before them by the General Council of the T.U.C., is it not quite clear that there is no necessity whatever for the Government either to strengthen the legislation regarding incomes or to introduce a new Bill with further teeth in it?

The Prime Minister

I think my hon. Friend will have formed his own view about immediate prospects for the success of the incomes policy contained in the T.U.C. document, which is an extremely valuable document. He will have formed his own impression in the light of the voting and the intentions declared by some of the unions. This is an extremely important subject and the House will become seized of it soon.