§ Q1. Mr. John Fraserasked the Prime Minister if, in view of his decision to be concerned directly in the work of the Department of Economic Affairs, he will publicise and encourage showcase plants, firms and industries which will illustrate to employees and the nation the advantages to be gained from increased productivity, investment, exporting, price competitiveness, use of science and other factors beneficial to the economic prosperity of the country.
§ The Prime Minister (Mr. Harold Wilson)Yes, Sir. This is already being done by the Departments concerned and by the British Productivity Council.
§ Mr. FraserI thank my right hon. Friend. Does not he agree that it is important to present opportunities for prosperity in present circumstances in terms which the ordinary man-in-the-street understands and that example is as good as precept?
§ The Prime MinisterYes, Sir. During the period since last August the index of industrial production has started to rise quite sharply, particularly in manufacturing, while the number of unemployed has fallen sharply, particularly in development area regions.
§ Mr. Ian LloydHow does the Prime Minister reconcile his proposals to meet his hon. Friend's request with the Budget, which directly and perceivably gives no encouragement to any of the factors mentioned in the Question on the Order Paper?
§ The Prime MinisterThe hon. Gentleman is quite wrong, although I would not wish to prejudge anything he may wish to say in the Budget debate. Industrial production rose by 2.9 per cent. in manufacturing in the last quarter compared with the previous quarter, and there has been a sharp fall in unemployment. That is part at least of the answer to the hon. Gentleman.
§ Mr. HeathThe Question on the Order Paper refers to price competitiveness. What does the Prime Minister now calculate to be the rise in the index of retail prices for the rest of the year, including the effects of devaluation, the Budget and the increases in fuel prices, telephone charges and so on?
§ The Prime MinisterI cannot now give that estimate. We might have a better idea of it when the discussions with the C.B.I. and the T.U.C. about the prices and incomes policy are complete. The right hon. Gentleman will be aware of the estimates in respect of the additional impact on the cost of living of the Budget and also of the figures already published in respect of increases following the Prices and Incomes Board's Reports.
§ Mr. HeathLeaving aside any question of increases due to wages still to come, the Prime Minister must know what the increase is to be for the rest of the year as a result of devaluation, the increases in prices by public bodies and the Budget tax increases.
§ The Prime MinisterVarying estimates have been made—for example, 1.9 per cent. and 0.4 per cent.—of the results of devaluation and other measures. I would prefer to be surer of these figures following those consultations.