HC Deb 18 May 1971 vol 817 cc1069-70
25. Mr. William Hamilton

asked the Chancellor of the Exchequer if he will initiate joint discussions with the Confederation of British Industry and the Trades Union Congress for the purpose of agreeing on a prices and incomes policy.

Mr. Barber

The National Economic Development Council will be discussing general economic matters at its meeting in July, and prices and incomes will be within the scope of this discussion.

Mr. Hamilton

Could the right hon. Gentleman say whether the Government's failure since July, 1970, to curb inflation is due to the fact that they have deliberately turned their faces against any semblance of a prices and incomes policy, and that this is leading to considerable unemployment, considerable inflation of prices and injustice to people who cannot particularly bear it? Will he give an assurance that there will be some attempt soon by the Government to introduce a voluntary policy agreed by the C.B.I. and T.U.C. to bring an end to the present chaos?

Mr. Barber

As I said, there will be discussions on these and other matters at the July meeting of N.E.D.C. I have never ruled out a voluntary incomes policy, but it would have to be a real and genuine one and not a phoney, make-believe one.

Mr. Emery

Would my right hon. Friend say whether the Treasury or the C.B.I. or the trade unions are carrying through any consideration of restraining influences which might be placed on industry in the form of an excess wages tax?

Mr. Barber

It may be that this matter will be raised by somebody when we meet in July, but I do not know as yet.

Mr. Barnett

Since the Chancellor of the Exchequer said that he does not rule out discussion of a prices and incomes policy, does that mean he does not rule out discussions on price restraint?

Mr. Barber

I said that I have never ruled out a voluntary incomes policy, but it has to be a real and genuine one. I have no doubt that at the N.E.D.C. meeting in July in the wider economic context, we shall be discussing both prices and incomes.

Mr. Ashley

If the Chancellor of the Exchequer is unimpressed by the damage that is being caused to employers, trade unionists and low-paid workers by the absence of a fair prices and incomes policy, may I appeal to him to take action on the ground that such a policy will damage the Government?

Mr. Barber

I can only repeat what I said in answer to the original Question, namely, that these matters, together with others related to them, are for consideration at the July meeting of N.E.D.C., which is the forum where the C.B.I., the T.U.C. and the Government should discuss these matters confidentially.