Incomes Restraint (Hansard, 13 June 1974)

§ 8. Mr. Stanley
asked the Chancellor of the Exchequer whether he proposes to end the statutory restraint of incomes at the expiry of phase 3.

§ Mr. Dell
The Prices Bill contains provision for ending the statutory control of pay. We shall seek parliamentary approval for the exercise of these powers as soon as they are available to us.

§ Mr. Stanley
In view of the Minister's confirmation that he wishes to abolish statutory control over incomes immediately, what steps will the Government take to moderate the huge new pay claims now in process of preparation which his right hon. Friend the Chancellor of the Exchequer has already stated publicly the nation cannot afford?

§ Mr. Dell
It is of the utmost importance to moderate pay settlements. That is the object of entering into the social contract and of the discussions we are having with the Trades Union Congress.

§ Mr. Loughlin
Although he accepts that it is essential to restrain wage claims, does not my right hon. Friend recognise that wages are only one factor in inflation? Is it not better to emphasise the insignificant effect of wages upon inflation compared with other factors? Does my right hon. Friend agree that Opposition Members, before talking about restraint, should think not only in terms of the incomes of industrial and commercial workers but also in terms of the incomes which they themselves enjoy?

§ Mr. Dell
There are certainly other important factors in inflation, but that does not mean that it is not important to moderate income settlements.

§ Mr. Robert Carr
May I take it that the right hon. Gentleman still agrees with the Prime Minister that one man's pay increase is another man's price increase?

§ Mr. Dell
I certainly agree that wage settlements can be a factor in inflation. There are other factors. Inflation has to be brought under better control than was achieved by the Conservative Government.