HC Deb 29 April 1971 vol 816 cc704-5
Q4. Mr. Barnett

asked the Prime Minister if the public speech of the Secretary of State for Trade and Industry at the annual dinner of the British Rubber Manufacturers' Association on 23rd March on the economy represents Government policy.

The Prime Minister

Yes, Sir.

Mr. Barnett

Will the right hon. Gentleman now answer the question which was posed by my right hon. Friend the Member for Birmingham, Stechford (Mr. Roy Jenkins), because the Chancellor of the Exchequer has apparently completely changed Government policy? Whereas in his Budget Statement he said that he was prepared to take action if necessary to reflate the economy, in the debate yesterday he specifically said that he was not prepared to expand the economy to reduce unemployment. In the Prime Minister's view, does this mean, for example, that his right hon. Friend is not even prepared to consider an autumn Budget, if that should prove necessary and if unemployment continues to rise?

The Prime Minister

My right hon. Friend has always made it plain that the measures which he was taking and which he announced in the Budget Statement would affect unemployment. He also said on that occasion that if further action were required, he had the means to take it. That remains the position. He also made it plain that greater action could be taken when inflationary wage claims were abated and, therefore, when the economy had a better chance of expanding without demand inflation being added to cost inflation.

Mr. Roy Jenkins

In which way in the course of this year are the measures which have been taken expected to begin to affect unemployment?

The Prime Minister

My right hon. Friend has already dealt with that in his speeches.

Mr. Longden

Will my right hon. Friend remind hon. Gentlemen opposite that full employment does not necessarily mean a high standard of living, as they can easily see for themselves by going behind the Iron Curtain?

The Prime Minister

What my hon. Friend says is absolutely true. One must have increasing investment, better plant, more effective management and greater productivity if, at the same time, one is to have full employment and a rising standard of living.