HC Deb 14 January 1971 vol 809 cc254-6
Q1. Mr. Carter

asked the Prime Minister if he will now assume responsibility for economic affairs.

Q5. Mr. Barnett

asked the Prime Minister if he will now assume responsibility for economic affairs.

Q7. Mr. Marquand

asked the Prime Minister if he will now assume responsibility for economic affairs.

The Secretary of State for the Home Department (Mr. Reginald Maudling)

I have been asked to reply. No, Sir.

Mr. Carter

In view of the recent Report of the O.E.C.D. and other impartial observers of the British economy, warning of dangers which may lie ahead, would it not be right for the Prime Minister to take full charge of the economy in order to put his rather simplistic attitude towards the economic affairs of this country into effect?

Mr. Maudling

The previous experience, when the previous Prime Minister took charge of the economic situation, is not exactly encouraging. I am interested that the hon. Member should refer to the O.E.C.D. Report. I should be interested to know to what extent the Labour Party wished to adopt either its solution of a tighter credit squeeze or its solution of a compulsory wage freeze.

Mr. Barnett

In view of the importance that the Government attach to wage guidelines in their economic policies, why do they not set their own guidelines, rather than leave them to a court of inquiry, over which, presumably, they have no control?

Mr. Maudling

Experience of the compulsory statutory wages policy under the previous Administration was almost disastrous. The T.U.C., in its recent memorandum, made it clear how much we are now suffering from that legacy.

Sir A. V. Harvey

In view of the excellent trade figures published today—[HON. MEMBERS: "Hear, hear."]—under the guidance of my right hon. Friends—would my right hon. Friend please not depart from the line that he is now taking?

Mr. Maudling

Today's trade figures will be welcomed, I think, on both sides of the House.

Mr. Marquand

With reference to the supplementary question of my hon. Friend the Member for Heywood and Royton (Mr. Barnett), I think that the Home Secretary has slightly missed the point. Is it not rather objectionable to hand over responsibility for such a vital area of Government policy to a completely non-elected body? Can he assure us that the Treasury's evidence to the court of inquiry will be subject to parliamentary scrutiny, preferably by some form of Select Committee?

Mr. Maudling

The Treasury's evidence will be subject to scrutiny by the independent court of inquiry. I have never known that Governments of either party have thought it wrong, in cases of serious disputes, to appoint an impartial court of inquiry.

Mr. Roy Jenkins

Yes, but what some of us are concerned about is not that the Prime Minister should take over but that Ministers should exercise their proper Departmental responsibility. Will the Home Secretary tell us what arrangements he is making to have a White Paper or a statement by the Chancellor on the Treasury evidence to the court of inquiry, which is clearly of major importance and should be answered for by Ministers to this House, not sheltering behind civil servants giving evidence to an inquiry?

Mr. Maudling

I do not know what the former Chancellor is getting so excited about. The evidence given will be published and Ministers will be very happy to answer questions.

Mr. Roy Jenkins

What we should have—I am sure that the Home Secretary, on reflection, will agree with this—is a statement to this House, so that, on a major matter of Government policy, it is the Chancellor or other appropriate Minister who is responsible and not the Permanent Secretary to the Treasury.

Mr. Maudling

The Permanent Secretary is not giving evidence to this House. Ministers will continue to be responsible to this House. It is surely right for evidence to be given to an impartial court of inquiry by Government officials. This evidence will be subject to scrutiny here, where Ministers are responsible for answering Questions, and where, in the light of the inflationary situation which we took over, we shall be delighted to do so.