HC Deb 01 July 1975 vol 894 cc1180-2
17. Mr. Biffen

asked the Secretary of State for Employment if he will make a statement on the current pattern of wage and salary settlements; and what representations he has received advocating their statutory control.

Mr. Foot

We have made it clear that the general level of settlements is too high and must be substantially reduced. I have received no representations advocating statutory control from any representative body.

Mr. Biffen

In view of the right hon. Gentleman's long-standing and honourable record of inveterate opposition to the statutory control of salaries and incomes, may we assume that he would regard any measure of statutory control of incomes as a resigning issue?

Mr. Foot

I am grateful to the hon. Gentleman for having followed my career so carefully for so long a period. I hope that he will be able to follow it in the future with the same acclaim and approval.

Mr. Heffer

Can my right hon. Friend give us his view of precisely what is an excessive wage claim or an excessive settlement, as many Government supporters believe that a lot of wage settlements have not been excessive at all? Secondly, in giving us an assurance that there will not be a statutory incomes policy, can my right hon. Friend also indicate that the Government will not fall into the trap of an "either/or" situation—either a statutory incomes policy or excessive unemployment? Cannot he indicate that the time has come for alternative economic policies along the lines indicated by my hon. Friend in a statement last week?

Mr. Foot

Certainly I want to do everything possible to avoid both an increase in unemployment and the imposition of any statutory system for the control of wages. I believe that one of the best ways of helping to ensure that neither of those perils occurs and that neither of those dangers develops is by ensuring that we carry out the kind of proposals contained in the guidelines under the social contract and the kind of proposals that the TUC has been discussing with the Government for implementation over the coming period.

I agree that there may be much dispute about what is excessive. What I meant by excessive settlements is what was described as "excessive" in the guidelines of the TUC themselves.

Mr. Prior

If the target of the Chancellor of the Exchequer for a reduction to 10 per cent. in the rate of inflation is to be reached by the end of next year, what estimate and target figure have the Government set themselves for average increases in wages during the coming year?

Mr. Foot

The right hon. Gentleman must wait and listen to the Chancellor of the Exchequer. The Chancellor of the Exchequer is of age. He can speak for himself, and I am sure that he will reply to the right hon. Gentleman.

Mr. Prior

But the Secretary of State is Secretary of State for Employment. These are questions which come within his Department, and they are for him to deal with. Why is he so shy about answering? He is not generally shy.

Mr. Foot

I can assure the right hon. Gentleman that I am not shy. It seems much more sensible and orderly that, since the Chancellor of the Exchequer is to make a statetment on that precise subject, the right hon. Gentleman should restrain himself for just a few minutes more.