§ 16. Mr. Bruce-Gardyneasked the Chancellor of the Exchequer whether the evidence given by Sir Douglas Allen on behalf of Her Majesty's Treasury to the Wilberforce Committee regarding management by the Government of levels of unemployment was made with his authority.
§ Mr. BarberYes, Sir.
§ Mr. Bruce-GardyneSir Douglas Allen's evidence, if taken out of context, might conceivably give the impression that it was a Treasury view that levels of unemployment could be affected almost on a month-to-month basis by Government action. As past attempts at fine-tuning of this kind have not been very satisfactory—[HON. MEMBERS: "Too long."]—could my right hon. Friend give an assurance that no such Treasury view prevails and, incidentally, that the latest forecasts of the National Institute will be treated—
§ Mr. SpeakerOrder. I am loath to interrupt hon. Members. I have allowed some latitude on the Opposition side of the House. I think that hon. Members on that side should recognise that.
§ Mr. Bruce-GardyneWill my right hon. Friend give an assurance that those forecasts will be treated with suitable scepticism in view of the Institute's past record of fallibility?
§ Mr. BarberI think that I can best answer my hon. Friend by saying that I do not necessarily accept the suggestion that Sir Douglas Allen's evidence, if taken out of context, might imply one thing or another. If we read the evidence carefully and look at what he said in its total context we see that it is not inconsistent with the policy which my right hon. Friend the Prime Minister and I have been advocating.
§ Mr. BarnettIf the Chancellor wishes to do something about unemployment, will he at least reassure the nation, where there is a considerable slump in confidence, particularly business confidence and industrial investment confidence, that he does not intend to pursue a policy which will allow the level of unemployment to rise, and that he intends to carry out his pledges to reduce it?
§ Mr. BarberI certainly do not propose to give any indication of what measures, if any, I might or might not propose three weeks today.
§ 25. Mr. Ashleyasked the Chancellor of the Exchequer whether, in his forthcoming Budget, he will introduce proposals designed to reduce the present level of unemployment.
§ Mr. BarberI cannot anticipate the Budget.
§ Mr. AshleyDespite that great blessing, can the right hon. Gentleman tell us whether the present record rate of unemployment is deliberate Government policy designed to tip the balance against the trade unions or is just another example of the Government's miscalculations?
§ Mr. BarberThe principal cause of the unemployment, as I have said before, is the present rate of cost inflation. The fact is that people now know in the country that some of the trade union leaders are pricing their members out of their jobs. If there is any miscalculation, it is on the part of the trade unions concerned.
§ Mr. TaverneSurely the right hon. Gentleman is not saying that the level of unemployment at the moment is having any effect in keeping back inflation. Since there is a time lag before reflationary measures have their effect, is this not the 233 occasion for the Chancellor at the earliest possible moment to reflate the economy in order to deal with the rising unemployment?
§ Mr. BarberI have noted what the hon. and learned Gentleman said. As he appreciates, I cannot, three weeks before the Budget, anticipate my statement.