§ Q2. Mr. John D. Grantasked the Prime Minister if the public speech by the Chancellor of the Exchequer at Altrincham on 19th February concerning inflation represents the policy of Her Majesty's Government.
§ Q3. Mr. Sheldonasked the Prime Minister if the public speech of the Chancellor of the Exchequer on Friday, 19th February, in Altrincham and Sale 1183 on economic matters represents the policy of Her Majesty's Government.
§ Q10. Mr. Barnettasked the Prime Minister if the public speech of the Chancellor of the Exchequer at Altrincham on 19th February on wage inflation represents Her Majesty's Government's policy.
§ The Prime MinisterYes, Sir.
§ Mr. GrantIs the Prime Minister aware that in that speech the Chancellor of the Exchequer referred to inflation as
the greatest social evil of our time"—a description which some might feel aptly applies to the present Government? But could the Prime Minister, in view of his weekend speech in which he seemed to suggest that he was beginning to win the battle against inflation, give us some evidence of this, especially on the prices front? Can we have some examples of price reduction? Can the right hon. Gentleman tell us, for example, where he does his shopping
§ The Prime MinisterI said that there were the beginnings of indications of a de-escalation in wage awards. I should have thought that right hon. and hon. Gentlemen opposite would welcome this fact, because this is at the root at the moment of price inflation as well. As right hon. and hon. Gentlemen opposite themselves said at the end of their period in office that wage increases should be between 2½ and 4½ per cent., they should welcome our attempts to get them down to that level.
§ Mr. SheldonIs not it clear that what is causing increasing concern at present is the level of investment Whether it be by Henry Ford or by any other company, is not it clear that they will not invest when it appears likely that sales of their products will not be made just because of the deflationary policies being adopted by the Government?
§ The Prime MinisterIt may be clear to the hon. Gentleman. It is not clear to anyone else. The fact is that for the motor industry in this country there is a home market to be satisfied and a demand which is not being met by British producers. That is clear because of the rate of increase in imports of foreign cars which are being sold on the British market. It is not a matter of too small 1184 a home market. The market is not being satisfied by home production.
The point that Mr. Henry Ford and his colleagues made to us at lunch yesterday was that right across the world Ford agents are anxious to sell British-made cars but are unable to do so because of delays in deliveries resulting from industrial unrest.
§ Mr. BarnettWill the Prime Minister now answer my hon. Friend's Question? Whatever Henry Ford may have said to the right hon. Gentleman, is not it a fact that there is a depressing lack of confidence among British industrialists? They are not investing for the future, and the reason is the Government's deflationary policies?
§ The Prime MinisterThat is not the reason. It is because of the industrial unrest which is apparent to everyone. Let right hon. and hon. Gentlemen opposite do all that they can to prevent it. Another reason is that companies have not a sufficient degree of profitability, as a result of excessive and inflationary wage claims, from which to invest. It is only when right hon. and hon. Gentlemen opposite face those two points that they will be able to help British industry.
§ Mr. Harold WilsonThe Prime Minister promised to end all these difficulties as soon as he got into power. All that he has done for nine months is to put the blame on the unions, on the Opposition, on anyone except himself. How many more months or years does he hope to remain in power and go on blaming everyone but his Government?
§ The Prime MinisterWe shall remain in power and deal with this inflation and with industrial relations, despite everything that the right hon. Gentleman and his friends do to try to prevent it.