HC Deb 25 January 1973 vol 849 cc636-8
Q1. Mr. Meacher

asked the Prime Minister what plans he now has for a further meeting with the Confederation of British Industry.

The Prime Minister (Mr. Edward Heath)

I refer the hon. Gentleman to the answer which I gave on 23rd January in reply to a Question from the hon. Member for Bolsover (Mr. Skinner).—[Vol. 849, c. 217–20.]

Mr. Meacher

When the Prime Minister next discusses the fairness of his phase 2 proposals, will he explain how it is fair that a £20-a-week wage earner, who will get his allotted £1.80p a week wage rise, will find that over the next year he will lose £1 in family income supplement and also a further £1.50 a week in real terms, according to the Treasury's estimate of price calculation, and will end up 70p a week worse off? What is fair about a net loss?

The Prime Minister

What the lower-paid worker gets under this arrangement will come about as a result of negotiations within his own negotiating group. It is not limited in the way the hon. Gentleman states. If those who are negotiating wish the lower-paid worker to get more, he will get it. On the question of disregards, we have already taken the step of extending them from six months to a year, for the very purpose the hon. Gentleman wants to achieve.

Sir Harmar Nicholls

In view of the convulsions in economic thinking which appear to be taking place in many quarters, is there any way my right hon. Friend can find of conveying to the CBI the concern, and indeed apprehension, at the fact that Dr. Bracewell-Milne is leaving its board? Dr. Bracewell-Milne has always been sound and consistent with his economic advice and it is worrying if this change will mean any great disturbance to the CBI leadership.

The Prime Minister

That is a matter for the CBI. It is not a responsibility of Ministers.

Q4. Mr. Skinner

asked the Prime Minister if he is satisfied with the progress of his Government's policies to combat inflation; and if he will make a statement.

The Prime Minister

I made a full statement on this matter in the debate yesterday on the Government's proposals set out in the White Paper "The Programme for Controlling Inflation: The Second Stage", Cmnd. 5205, and in the Counter-Inflation Bill.

Mr. Skinner

Having listened to the Prime Minister's speech yesterday and reread it, may I ask whether he is aware that one can come only to the conclusion that, whatever else he does, he is unlikely to stop the racket in house and land prices? Perhaps the Prime Minister would care to refresh his memory about what occurred during the election campaign. He had a fancy answer to the problem of mortgages. What did he mean by introducing the Merret-Sykes proposals and the Australian system? If he cannot explain them, can he say what has happened to them?

The Prime Minister

They are still where they were.

Sir Harmar Nicholls

Bearing in mind the fact that the nation's greatest need in a period of inflation is improved investment, has this House ever heard a more irresponsible and damaging speech than that made by the Leader of the Opposition yesterday, in the middle of which he threatened to confiscate profits and to introduce a capital levy? Is not that a certain way of driving investment anywhere but to this country?

The Prime Minister

I agree completely with my hon. Friend, and when the Leader of the Opposition adds to that the complete nationalisation of the land of this country, indeed he is doing harm.

Mr. Bidwell

Is it not a fact in the present British economic crisis with which the Prime Minister is trying to grapple that, apart from 1931 and unlike the Labour Government's experiences, the Government are trying to depress the existing standard of living of the British people in order to put more into investment? Would it not be cleaner and more honest for the Prime Minister to explain that that is the real fact of the matter?

The Prime Minister

When the hon. Gentleman considers the figures I gave yesterday about the increase in prices last year of between 6½ and 7½ per cent. and the increase in earnings, it must be apparent even to him that there has been a very large increase in the real standard of living of the people.