ECONOMIC AFFAIRS (CHANCELLOR'S SPEECH) (Hansard, 8 July 1975)

§ Q1. Mr. Lawson
asked the Prime Minister if the public speech on economic affairs by the Chancellor of the Exchequer at Leicester on 21st June represents Government policy.

§ Q4. Mr. Peter Morrison
asked the Prime Minister whether the Chancellor of the Exchequer's public speech on the economy in Leicester on 21st June 1975 represents Government policy.

§ Q6. Mr. Rathbone
asked the Prime Minister whether the public speech of the Chancellor of the Exchequer on economic policy at Leicester on 21st June 1975 represents Government policy.

§ The Lord President of the Council and Leader of the House of Commons (Mr. Edward Short)
As the House knows, my right hon. Friend is in Edinburgh today in connection with the State visit of the King of Sweden, and in his absence I have been asked to reply.
I refer the hon. Members to the reply which my right hon. Friend gave to the hon. Member for Mid-Oxon (Mr. Hurd) on 27th June.

§ Mr. Lawson
Is the Lord President aware that that speech was all about wage inflation? Is he further aware that only eight weeks ago the Prime Minister appeared on television and told the nation that in no circumstances short of war would he contemplate introducing statutory wage controls of any kind—I repeat, of any kind? On what date did war break out?

§ Mr. Short
This party also said during the election that the beating of inflation was its top priority. We very much hope to reach agreement on a voluntary policy with the unions and with the CBI over the next few days.

§ Mr. Noble
Does my right hon. Friend recall that another statement on a particular sector of the economy was made by my right hon. Friend in this Chamber on 23rd May—namely, a statement on the textile and footwear industries? Does he recall that during that statement and in subsequent questioning the Prime Minister justified the action that he was going to take on the grounds that it would be immediate and relevant? Would my right hon. Friend care to tell the House what is his definition of "immediate and relevant" in view of the fact that there has been no action yet?

§ Mr. Short
I can promise my hon. Friend and the House that there will be a statement, of which I think my hon. Friend will approve, that will contain a package of useful measures for the textile industry in the next few days.

§ Mr. Morrison
As regards the forthcoming economic package, will the right hon. Gentleman tell the House what 328 further items from the Socialist programme the Government are prepared to drop in order to achieve the Chancellor's expressed wish that all men of good will in all parties should support the Government?

§ Mr. Short
I very much hope that all men and women of good will will support the Government in the measures that they propose.

Mr. Hafer
I do not accept the argument put forward by Conservative Members, who themselves did a remarkable U-turn in the last period of the Conservative Government, but is my right hon. Friend aware that on this side of the House and in the Labour movement in the country it is not expected that we should carry out a programme for statutory legislation on wages? Does he not accept that other important ideas for combating inflation must be adopted by the Government rather than a policy which, if put into operation, could tear this movement of ours to pieces? I ask my right hon. Friend at this late stage to say to the Prime Minister that he and the Government must think again.

§ Mr. Short
I agree that there must be a battery of measures to combat inflation. We must put across to the people that their employment prospects are threatened by inflation. That must be tackled without delay.

§ Mr. Rathbone
How do the Government intend to make people aware of the need for a little self-discipline now rather than a lot of harsh, imposed discipline later?

§ Mr. Short
Every hon. Member in the House should seek to bring home to people in the country the economic crisis and the problem of inflation. Inflation is a problem for every individual in the country and not merely for the Government.

§ Mr. Thorpe
Is the right hon. Gentleman aware that the sense of urgency recently expressed by the Chancellor of the Exchequer has been underlined by the OECD figures published today showing that our rate of inflation is second only to that of Iceland. If under the Government's proposals employers are to be enforcement officers for the Government's pay policy, it would surely be as fruitless 329 and unfair to expect the trade unions to be enforcement officers for the Government's pay policy. Does the right hon. Gentleman accept that the Government will be judged on whether they are prepared to take the initiative and are prepared to govern rather than to shuffle it off on to others?

§ Mr. Short
The Government are prepared to govern. We have put forward proposals and we shall see that they are carried out. The Government are resolutely opposed to imposing criminal sanctions against workpeople. The Conservative Government tried that idea and had to call on the Official Solicitor to save them. We do not want a repetition of that fiasco.