§ Q2. Mr. William Hamiltonasked the Prime Minister if he is satisfied with the co-ordination between the Ministry of Agriculture, Fisheries and Food, the Department of Health and Social Security 232 and the Department of Employment in respect of prices and incomes policy; and if he will make a statement.
§ The Prime MinisterYes, Sir.
§ Mr. HamiltonDoes that answer mean that the Prime Minister and the Government have a prices and incomes policy? If they have, what does it mean? Does the right hon. Gentleman recognise that as long as land speculators flourish and as long as the prices of bread and beer, and other essentials of ordinary people, are soaring, it is no wonder that even his own supporters are describing him as the biggest Judas in the last thousand years? Will he now tell us what he intends to do to implement his promise to reduce prices at a stroke?
§ The Prime MinisterWhat it means is that since July, 1971, retail prices have increased by 4¾ per cent., instead of 8¾ percent. as in the same period a year ago. That is something that the hon. Gentleman ought to acknowledge instead of shouting in his ridiculous way. It also means that the rate of increase of wage awards has also decreased and, as my right hon. Friend the Chancellor has said, even since Wilberforce, of the 36 public sector settlements 21 were 8 per cent, or under. That is what the policy means and that is what it is achieving.
§ Mr. RedmondWould my right hon. Friend agree that by voting against VAT and voting for selective employment tax, the Opposition have voted for a tax on food? Would he care to comment on the price of butter, milk and sugar, and would he agree that the housewife has dealt with the rise in beef prices very effectively?
§ The Prime MinisterI agree with my hon. Friend. One does not expect to hear from the Opposition when prices come down.
§ The Prime MinisterPerhaps the right hon. Gentleman, who was once Minister of Agriculture, will acknowledge that butter prices have come down.
§ Mr. Harold WilsonIn view of the right hon. Gentleman's claims last week and this week that the Government had succeeded in slowing down the rate of 233 cost of living increases, may I ask whether he has seen yesterday's statement in the Financial Times and its monthly index of food prices? Basing February, 1971, as 100, it has now risen 16 per cent. above the February, 1971, level in as many months. Is that what he promised the country?
§ The Prime MinisterIf the right hon. Gentleman is dealing with statistics, he should deal with the cost of living as a whole and not extract one part of it. He used to pride himself on the accuracy and integrity of a statistician. Perhaps he should stick to that.
§ Mr. WilsonI am sorry if I did not give the right hon. Gentleman a brief on this matter. Throughout the General Election the right hon. Gentleman consistently referred to food prices. If he has not seen it, I will send him the text of what he said on Saturday to the housewives of Leicester about food prices. If the right hon. Gentleman wants accurate figures, they have risen 15.9 per cent. since February, 1971, according to the Financial Times index. Does the right hon. Gentleman question that index? If not, how does he defend it?
§ The Prime MinisterIf the right hon. Gentleman wants figures, from November, 1969, to May, 1970, under his Administration, prices rose by 6.8 per cent. From November, 1971, to May, 1972, they rose by 3.9 per cent. That is what has been achieved by the present Government, by contrast with what we took over from the right hon. Gentleman.