HC Deb 10 February 1970 vol 795 cc1070-3
Q2. Mr. Edward M. Taylor

asked the Prime Minister if he is satisfied with the co-ordination of Ministers responsible for price control; and if he will make a statement.

The Prime Minister

Yes, Sir.

Mr. Taylor

Is the Prime Minister aware of any period since the Napoleonic wars when prices rose as fast as they are now rising? Having regard to the very real hardship which soaring prices are imposing on lower-paid workers, is not the right hon. Gentleman just a little bit ashamed of having been elected to power on a pledge to control the increase of prices?

The Prime Minister

I welcome the hon. Gentleman's clear dissociation from his party's policy. Since we now understand from the Leader of the Opposition, bearing his electioneering posters—[HON. MEMBERS: "Answer."] It is obvious that hon. Gentlemen opposite cannot take it. Like it or not, they are going to get it.

We see a change in policy on the part of hon. Gentlemen opposite, who now say that they will not cut all taxation but only direct taxation. Indirect taxpayers have been warned. We also have their V.A.T., levies on food and their desire—[HON. MEMBERS: "Answer."] I am answering.

Mr. Speaker

Order. We must hear both sides.

The Prime Minister

Hon. Gentlemen opposite do not like it when they get it back—[HON. MEMBERS: "Answer."]— and they are going to get it from now on. We have also had their vote against controls on rents and their attempt, frustrated only by my hon. Friends, to introduce fees in education.

Mr. Hugh D. Brown

I am sure that my right hon. Friend is not complacent about this.

Sir G. Nabarro

Don't you believe it.

Mr. Brown

Does the Prime Minister realise the need for a massive educational programme in this very sphere? Since the public refuse to believe that earnings have increased at a rate faster than prices, would it not be advantageous to have a readily available single body which could act as a deterrent in view of the activities of unscrupulous shopkeepers who are putting on excessive price increases and sticking up notices blaming the Government?

The Prime Minister

I am sure that the right hon. Gentleman the Leader of the Opposition and his hon. Friends would wish to take part in any educational programme such as my hon. Friend has in mind. Hon. Gentlemen opposite would no doubt wish to explain why the cost of living last year rose higher in America and Japan—[Interruption.] I am giving the facts—why it rose faster in America, where there was no devaluation, in France, Ireland, the Netherlands and in Portugal, most of which are following the economic policies being advocated by hon. Gentlemen opposite.

Mr. Heath

As part of the educational programme on which the Prime Minister has now embarked at his hon. Friend's invitation, would he explain to the country that while he and his colleagues promised that the standard of living would increase by 25 per cent., as a result of their policies the cost of living has gone up by 24.8 per cent.? Would the right hon. Gentleman go further and break that figure down by saying how much of the 24.8 per cent. increase in prices was due to deliberate Government policy on taxation, how much was due to inadvertent policies such as devaluation and how much prices have gone up just because the Government could not help it?

The Prime Minister

Yes, Sir, certainly. In fact, the cost of living record of Labour compares more than favourably with the record of hon. Gentlemen opposite—[Laughter.]—because from 1961 they had the advantage of a very big fall in world prices. They frittered that away and left us with a balance of payments deficit—[Interruption.]—which was substantial. The Leader of the Opposition has a research department and can look up the figures. Perhaps he will give them to the House when he has done that exercise.

As to the three components to which the right hon. Gentleman referred, the first being Government policy on taxation—

Mr. Heath

Deliberate policy.

The Prime Minister

We understand that the right hon. Gentleman has now announced deliberate Tory policy on indirect taxation—[Interruption.]

Mr. Speaker

Order. Noise helps nobody.

The Prime Minister

—deliberate Tory policy on indirect taxation which would mean a gratuitous increase above what would be necessary on world prices and other factors. We have asked the right hon. Gentleman for some facts about that. Perhaps he will give them to us some time.

To answer the right hon. Gentleman's supplementary question about devaluation, which inevitably increased prices somewhat—

Mr. Heath

But not the £ in one's pocket!

The Prime Minister

The right hon. Gentleman has asked questions about the £ in one's pocket before. I see that he is still using it in his party propaganda. [HON. MEMBERS: "Hear, hear."] I now ask him to put in his party propaganda what I said in that broadcast, which was that prices would rise. I challenge him to put that in his party posters and advertising, and if he does not do it he will devalue himself to the same level—[Interruption.] Hon. Gentlemen opposite do not like it.

Mr. Speaker

Order. The House must be fair. It heard the question. It must hear the answer.

The Prime Minister

Hon. Gentlemen opposite think that they can have it all their own way. They do not like it when they get it back, and they are going to get it back.

My answer to the right hon. Gentleman is that he announced a prescription last week which would result in further increases in the cost of living, which we shall oppose.

Mr. Shinwell

Has not my right hon. Friend omitted to mention one item of Tory policy which has suddenly emerged; namely, the proposal by a very prominent Member of the party opposite—it was not mentioned at the Selsdon Park conference of the Shadow Cabinet—that youthful offenders and others, and particularly those who engage in demonstrations and intervene in sporting events, should be placed in the stocks? Are not hon. Gentlemen opposite already returning to the Middle Ages?

Mr. Speaker

Order. I remind the right hon. Gentleman that the Question relates to price control.

The Prime Minister

With respect to my right hon. Friend, I agree that the use of the stocks does not fall within the co-ordinating powers of Ministers concerned with prices. [Interruption.] I assure hon. Gentlemen opposite that we have no proposals on the point mentioned by my right hon. Friend. On the other hand, we have certain powers, which hon. Gentlemen opposite voted against, in respect of price control.