HC Deb 16 February 1971 vol 811 cc1586-8
8. Mr. Horam

asked the Chancellor of the Exchequer if, in view of the evidence presented by Treasury civil servants to the Wilberforce Committee to the effect that prices will rise by 6½ per cent. in 1971, he will reconsider his decision not to impose a price freeze this year.

Mr. Barber

No such evidence was presented.

Mr. Horam

Would the Chancellor not agree that if a measure of price control were introduced this year, it would enable him to negotiate a voluntary element of wage restraint with the unions even at this stage? Would he not agree that this would not have any harmful effects on the economy, and indeed would have positive effects on inflation, on the rate of employment and on growth?

Mr. Barber

Those remarks go very much wider than the original question, which is about alleged evidence given to the Wilberforce Court of Inquiry. With great respect, the hon. Gentleman should get his facts straight before putting down a Question.

Hon. Members

Look who is talking!

Mr. Barber

It is quite clear that the hon. Gentleman has never even taken the trouble to read the evidence.

Mr. Bruce-Gardyne

Would my right hon. Friend try to get it into the heads of hon. Members opposite that if he were to impose a price freeze at the present time of galloping wage-cost inflation, this would simply remove what has been left of profit margins after the behaviour of the Labour Government, which destroyed all incentive to industrial investment?

Mr. Barber

My hon. Friend is absolutely right.

Mr. Taverne

Could the right hon. Gentleman clear up one point? There was a report in the Press after this inquiry about a projection of price increases in the next year. Was nothing said about this at all, or was this a pure invention of the reporter concerned in a perfectly reputable paper?

Mr. Barber

The evidence is in the Library of the House of Commons for hon. Members to read. The hon. and learned Gentleman will see that Sir Donald MacDougall said that he was giving, a purely hypothetical example". He went on to say: This is, I repeat, a purely hypothetical example. It is not a forecast. It is not a policy. These were facts which were given to assist the court.