HC Deb 14 November 1974 vol 881 cc585-7
Q2. Mr. Blaker

asked the Prime Minister when he expects to receive the first report of the Royal Commission on redistribution of incomes and wealth.

The Prime Minister

I am hopeful that the commission will meet the request, which was made in the Government's first reference to it, for an initial report within about a year.

Mr. Blaker

Can the Prime Minister explain why his right hon. Friend the Secretary of State for Employment seems so reluctant to invite the commission to study what happens in other countries? Is the Prime Minister aware, to take one example, that a Russian general receives more than 300 times as much in pay as a Russian private, whereas a British general, after tax, receives about five times as much as a British private? While I am not by any means suggesting that we should follow the Russian differentials, would it not be useful if the commission were to study what happens in other countries?

The Prime Minister

I am grateful to the hon. Gentleman. My own studies of these matters over many years in relation to soldiers led me to say many times, publicly and privately, that we did not expect to see the same inequalities of rewards in this country as they have in the Soviet Union. I did not know that the figures were quite so glaring as the hon. Gentleman says. The Royal Commission, of course, is not being precluded from making international studies. It will make international comparisons where these are relevant. But it cannot be directed to go into a long programme of research and parallel studies of the position of other countries—all other countries, not just the favourite one of the hon. Member. That would take too long and would place too much strain on the commission's resources. It has a job to do, and if it wants to know about the parallel questions abroad it will inquire into them.

Mr. Grimond

Would the right hon. Gentleman give an undertaking that the wealth tax will not be introduced until we have received the report of this Royal Commissilon?

The Prime Minister

The wealth tax will be considered by a Select Committee of this House. That will put the matter entirely within the control of this House since a Select Committee will report on it and then Parliament has to debate it before it becomes law. It is totally under our control. I do not believe that we can place the legislative process of this House in commission, even to a Royal Commission.

Mr. Peyton

Is the Royal Commission, therefore, an academic exercise?

The Prime Minister

No, Sir. If the right hon. Gentleman, by that rather silly question—[HON. MEMBERS: "Not at all."] It really was a typically silly question. If the right hon. Gentleman is suggesting that this House should not legislate until we have a report from a Royal Commission, I should be very interested to know whether he can explain why his own Government did not have a Royal Commission before the Housing Finance Act and the Industrial Relations Act.

Mr. Peyton

Has the Prime Minister noted that one of the inevitable results of what he calls a silly question is the eliciting of a very fluffy answer?