HC Deb 15 December 1970 vol 808 cc1104-6
24. Mr. Barnett

asked the Chancellor of the Exchequer what further fiscal and monetary measures he now intends to use to reduce the level of unemployment.

Mr. Barber

At the present time I have no statement to make on this matter.

Mr. Barnett

As the Chancellor and the Prime Minister have argued that the cause of much of our present trouble has been the growth of the money supply prior to June, will he present to the House the figures about it and what he has been doing since? Will the right hon. Gentleman also confirm that the effect of the policies which he is now pursuing would be to increase rather than to reduce unemployment?

Mr. Barber

No, I do not accept that. If the Opposition want to help to get down the level of unemployment, they might get into line with public opinion and speak out against excessive wage claims and support the Industrial Relations Bill—[interruption.] Yes. When they have shown what the Leader of the Opposition used to describe as "some guts", then I think they are entitled to speak for the unemployed.

Mrs. Renée Short

Should not the right hon. Gentleman be more concerned about the 160 million days per annum lost because of unemployment, than about harping on the Industrial Relations Bill, which does not help the situation at all?

Mr. Barber

Of course I am concerned. For a long time now—long before this Administration came to office—the level of unemployment has been too high. I have said this on a number of occasions. I very much hope that the long-term action which we are taking will bring down the present high rate of unemployment.

Mr. Grimond

While the right hon. Gentleman may be right in saying that the increase—[Interruption.]

Mr. Speaker

Order. It is not in order to intervene between the Chair and an hon. Member who is speaking to the Chair.

Mr. Grimond

While the right hon. Gentleman is no doubt right in saying that the increase not only in wages but in salaries and remuneration generally is a serious matter for the economy, will he also bear in mind that there is now a growing shortage of capital and credit in some of the under-developed areas and that there may come a time when there must be some variation in the policy of the squeeze unless we are to face serious local unemployment in some of these areas?

Mr. Barber

I will bear in mind what the right hon. Gentleman says. But the right hon. Gentleman obviously would not expect me to anticipate any such matters, even if I had them in mind.

Mr. Emery

While reducing the money supply will obviously have an unfavourable effect on industrial investment and the Government would not want to take action before Christmas, may I ask my right hon. Friend to give an undertaking to look most carefully at the amount of money supply in January, because it may be necessary then to take stringent action?

An Hon. Member

It will be too late then.

Mr. Barber

The question of money supply and domestic credit expansion are matters which any Government would keep under review, and I will do that.

Mr. Roy Jenkins

Reverting to the right hon. Gentleman's earlier remarks in reply to my hon. Friend about inflationary wage claims, may I ask whether he still considers that he was right to advocate the payment of 30 per cent. to the doctors during the General Election?

Mr. Barber

I have no reason to resile from the view expressed by my right hon. Friends and myself regarding the doctors' claim. In the circumstances of that time—[Interruption.]—when his right hon. Friend who was then Secretary of State for Social Services was talking about the economy being in peril—[An HON. MEMBER: "That is not true."]—it was right to say what we did by way of qualification, and I have no reservation whatsoever.