HC Deb 09 February 1971 vol 811 cc271-3
Q4. Mr. Barnett

asked the Prime Minister if the public speech of the Chancellor of the Exchequer on 19th January in London on economic policies represents the policy of Her Majesty's Government.

The Prime Minister

Yes, Sir.

Mr. Barnett

Does it remain Government policy to beat inflation by concentrating on the public sector wage section rather than doing anything at all about economic growth and full employment? Is it intended to continue this policy through courts of inquiry, or is the present one intended to be the last?

The Prime Minister

The speech by my right hon. Friend to which the hon. Gentleman refers was concerned almost entirely with monetary policy and its effects and its use as one of the economic weapons. My right hon. Friend dealt in some detail with the way in which he proposes to use it. It is only one of the economic weapons we propose to make use of.

Mr. Roy Jenkins

Will the right hon. Gentleman tell us whether it is his view that increasing unemployment, arising because of the failure of Rolls-Royce and other causes, is looked to as a curb to inflation or whether The Times political correspondent who attributed these views to senior Ministers this morning was misinformed?

The Prime Minister

Any redundancies which follow from the Rolls-Royce situation are the consequence of that firm's failure and insolvency, not of Government policy.

Mr. Roy Jenkins

Will the right hon. Gentleman please for once answer the question? Is it his view, as The Times this morning said it was the view of senior Ministers, that increasing unemployment due to this and other causes will help to contain inflation, or is it not his view?

The Prime Minister

It is not the policy of the Government to bring about unemployment for that purpose. These redundancies are here as a result of an industrial failure.

Mr. Roy Jenkins rose

Several Hon. Members rose

Mr. Speaker

Mr. Roy Jenkins.

Mr. Kenneth Lewis

On a point of order, Mr. Speaker. I do not know whether it is acceptable to you, but I feel that it is not acceptable to the House that the right hon. Member for Birmingham, Stechford (Mr. Roy Jenkins) should have three supplementary questions when there has been none from this side of the House.

Mr. Speaker

That is not a point of order, but I think that these are very much matters of self-discipline. I have encouraged, or tried to encourage, both Front Benches and back benches to discipline themselves.

Mr. Roy Jenkins

As you were good enough to call me, Mr. Speaker, which you would not have done had you not thought it right, may I ask the Prime Minister, if not "for that purpose", to use his own words, to what purpose are the Government allowing unemployment to rise?

The Prime Minister

If the right hon. Gentleman wishes to make the point that excessive wage increases of an inflationary nature, which he released himself and is now supporting, result in increased costs which price firms out of the market and lead to unemployment, he is absolutely right, and perhaps he will advise his hon. Friends behind him and the trade unions to learn the lesson.