HC Deb 16 February 1971 vol 811 cc1580-2
1. Sir G. Nabarro

asked the Chancellor of the Exchequer what instructions he gave to Treasury officials appearing before the Wilberforce Committee; and whether he will make a statement.

The Chancellor of the Exchequer (Mr. Anthony Barber)

Their instructions were to give the Court of Inquiry the assistance which had previously been requested by the Court.

Sir G. Nabarro

Will my right hon. Friend observe that the outcome of his instructions to his Treasury officials was an award variously assessed between 10.9 per cent. and 16 per cent., all of which is highly inflationary? If the award is taken as a norm to be spread over the whole field of wage and salary demands, will not the effects on inflation be utterly catastrophic?

Mr. Barber

It is quite clear from the report and recommendations of the Court of Inquiry that the proposals it put forward were not to be taken as representing a norm. The actual figures were that the electricity workers claimed 25 per cent., the employers offered 9.7 per cent. and the relevant figure for the proposals of the court of inquiry was 10.9 per cent.

Mr. Taverne

Was it not inevitable, because of the nature of the inquiry, that civil servants would be subjected to political questioning? Was it not intolerable that they should have to answer such questions, and is it not quite wrong for Ministers to hide behind the skirts of their civil servants?

Mr. Barber

I have already explained on a previous occasion that this procedure was not new but was something which had been done before. I reacted to a request which had been made by the secretary of the court in a letter addressed to the Permanent Secretary to the Treasury. Furthermore, the Court of Inquiry paid tribute to the officials who gave evidence.

21. Mr. Stallard

asked the Chancellor of the Exchequer whether it was with his authority that the Permanent Under-Secretary to the Treasury, in giving evidence to the Wilberforce public inquiry about wage bargaining in industry, stated that it was dangerous for claimants to build in factors for an expected increase in prices.

Mr. Barber

I fully endorse what the Permanent Secretary to the Treasury said to the Court.

Mr. Stallard

Is the Chancellor aware that the Conservative chairman of the London Borough of Camden's housing committee recently said that if three or seven year leases are to be offered to council tenants the rents charged will have to be high enough to cover inflation during the term of the lease? In view of the obvious contradiction between that statement and the one given to the Wilberforce Inquiry, may I ask whether the right hon. Gentleman will now make a statement on what is the Government's policy?

Mr. Barber

It is clear from the report of the Court of Inquiry that the Court accepted that if everyone tried to cover himself against expected future price increases, this process would push up prices to a higher level than would otherwise be the case.

Mr. Kenneth Lewis

Does my right hon. Friend agree that the original Question put by the hon. Member for St. Pancras, North (Mr. Stallard) is a clear indication that he and right hon. and hon. Gentlemen opposite are openly inviting increases in prices through increased wages?

Mr. Barber

I certainly agree with what I think my hon. Friend is getting at—namely, that the Question is wholly misguided.

Mr. William Hamilton

In view of what my hon. Friend said in his supplementary question, will the right hon. Gentleman undertake to get in touch with Camden Borough Council and any other authority which seeks to impose factors in contemplation of further inflation in any prices over which they have any control?

Mr. Barber

It would be much more appropriate if the hon. Gentleman concerned put down a Question.