HC Deb 05 November 1970 vol 805 cc1254-6
Q1. Mr. Marten

asked the Prime Minister when he will next take the chair at the National Economic Development Council.

Q2. Mr. Sheldon

asked the Prime Minister how many times he has taken the chair at the National Economic Develop-Council.

The Prime Minister (Mr. Edward Heath)

I took the chair at meetings of the Council on 20th July and 19th October. My right hon. Friend the Chancellor of the Exchequer is Chairman of the Council, but I intend to take the chair myself from time to time.

Mr. Marten

Now that the Government have taken action to reduce the rate of Government expenditure, which was one of the main causes of inflation, is it not up to employers and employees to do their best and try to reduce the ridiculous rate of wage claims, which is such a big factor in price increases?

The Prime Minister

Yes. My right hon. Friend the Chancellor of the Exchequer dealt with this point in his speech yesterday.

Mr. Sheldon

Is the Prime Minister aware that a Treasury Written Answer to a Question yesterday showed that for each£100 of investment in plant and machinery the incentive used to be worth£52 under the grant system and that this has now been reduced to only£36 as a result of the new scheme for allowances? What does the Prime Minister intend to do about this serious loss of incentive?

The Prime Minister

I saw the Answer to the hon. Gentleman's Question. He did not take into account the changes which have been made in respect of buildings as well as of plant and machinery. As for the development areas, he did not take into account in his Question—nor was it taken into account in the Answer—the money to be spent on infrastructure for the benefit of industry in development areas as a whole.

Mr. Alfred Morris

When the Prime Minister goes to the N.E.D.C., will he explain to the trade union members why they should now take any notice of all his election talk about trade union legislation when he himself has falsified all his election talk about rising prices?

The Prime Minister

The policy about trade unions was clearly set out long ago in the pamphlet which we published and it was then dealt with again in our election manifesto. It has been set out in the document for consultation with the trade unions and it will be embodied after consultation in the Bill.

Mr. Duffy

If the next meeting of the N.E.D.C. reflects the same level of anxiety about confidence in industry as was demonstrated at the October meeting, will the Prime Minister consider an early, if limited, reflation?

The Prime Minister

The discussion at the October meeting was a very well-informed discussion about the problems of investment in the longer term, which emphasised not only the need for new investment but also the need for the better use of existing investment. There was general agreement that these are the two aspects to which not only the Government but also industry must address itself.