HC Deb 24 February 1969 vol 778 cc1065-6
27. Mr. Biffen

asked the Secretary of State for Employment and Productivity the estimated percentage increase in wage rates and earnings during 1968; what were the corresponding figures for salaries; and how these compare with the norm indicated by the incomes policy.

Mr. Harold Walker

During the period end-December, 1967, to end-December, 1968, there was an increase of 6.9 per cent. in basic weekly rates of wages or minimum entitlements. Basic hourly rates increased by 7.1 per cent.

It is not possible to give a comparable figure for wage earnings for the calendar year 1968, but according to the results of the half-yearly inquiries the average weekly and hourly earnings of full-time manual workers increased by 7.8 per cent. and 7.1 per cent., respectively, between October, 1967, and October, 1968. The results of the annual inquiry into the earnings of administrative, technical and clerical employees held in October, 1968, are not yet" available.

Mr. Biffen

Inasmuch as that information reveals the current state of movement in wages and salaries, is it the hon. Gentleman's conclusion that these increases above the norm indicate an inadequacy of statutory powers or ineffective application of the statutory powers which the Government possess?

Mr. Walker

I have already pointed out once to the House that increases in wage rates and scales do not necessarily find their reflection in earnings. The policy is directed at imposing a ceiling on earnings. Secondly, as to earnings, which I dealt with fully on 20th January, I pointed out then to the hon. Member that earnings have to take into account a number of factors which are not provided for in the policy, such as, for example, increases in payments by results and overtime earnings.

Mr. Hastings

What sparked off what the Minister referred to just now as the present phase of the incomes policy? What is this?

Mr. Walker

The present phase of incomes policy started in March, 1968. I thought that the House was aware of this.