Earnings (Hansard, 25 March 1968)

§ 13. Mr. Biffen
asked the Minister of Labour what has been the estimated increase in wage and salary rates and earnings for the latest available six-month period: and what is the expected increase during the coming six months.

§ Mr. Hattersley
During the period end-July, 1967, to end-January, 1968, there were increases of 4.1 per cent. in the weekly wage rate index, 4.2 per cent. in the hourly wage rate index and 4.0 per cent. in the index of average earnings, which covers both wage and salary earners. Estimates of future expectations are not published.

§ Mr. Biffen
Can the Joint Parliamentary Secretary confirm that these increases of 4 per cent. or so have occurred at a time when there exists statutory legislation to limit prices and incomes? Will he, therefore, reflect whether this does not show the inadvisability of such a policy which has so demonstrably failed?

§ Mr. Hattersley
No. I certainly do not accept that. Had the hon. Gentleman been less careful about the selection of the period for which he asks the figures, I do not think that the House would hold that view.

§ Mr. Barnett
On what does my hon. Friend base his estimate? What does he think would have been the rate of increase if there had not been the current wages legislation and what does he estimate the increase will be with and without the prospective legislation now being proposed?

§ Mr. Hattersley
As I was not giving an estimate in the first place, it is highly unlikely that I shall be prepared to answer that question which was dependent on an estimate having been given.

§ Mr. R. Carr
As the hon. Gentleman suggested that my hon. Friend the Member for Oswestry (Mr. Biffen) had been selective in his choice of period, is he not aware that the National Institute also expressed the opinion that the statutory policy had had no effect over the whole of its first 15 months of operation?

§ Mr. Hattersley
As the right hon. Gentleman is doubtful about my allegation, I should like him to consider some alternative figures. During the standstill, average earnings rose by 0.3 per cent. During the period of severe restraint, they rose by 1.9 per cent. In the six-month periods between and after those periods they rose by at least twice that amount.