HC Deb 10 July 1975 vol 895 cc724-5
8. Mr. Canavan

asked the Chancellor of the Exchequer when he next plans to meet the STUC.

Mr. Joel Barnett

My right hon. Friend has contact with representatives of the STUC at various times, and it has many opportunities of making its views known to him. But he has at present no plan to meet the STUC.

Mr. Canavan

Will my right hon. Friend tell Scottish workers and their families, many of whom are obliged to struggle along on wages less than one-tenth of the Chancellor's salary, why the Chancellor considers wage increases to be the major cause of inflation when over the past five years the precentage of gross national product taken up by wages has increased by less than 1 per cent.? Will my right hon. Friend also urge the Chancellor to introduce a price freeze to shield lower-paid workers from wage restrictions caused by collaboration between the Treasury and the CBI?

Mr. Barnett

Whatever may have been the situation in the past five years, I doubt whether anyone would disagree with the fact that in the past 12 months wage inflation has been one of the major causes of price inflation.

Mr. Heffer

No.

Mr. Biffen

No.

Mr. Barnett

That is my view. I am sorry if my hon. Friend disagrees. May I say to my hon. Friend that tight control on prices without wage restraint is the sheer, certain way of creating massive bankruptcies and the loss of thousands of jobs.

Mr. Teddy Taylor

Is the right hon. Gentleman aware of the serious concern among Scottish trade unionists about the shortage of police manpower in our Scottish cities? Can he give us today a clear and categoric assurance that the Chancellor's statement tomorrow will not prevent the police pay settlement, recently agreed with the Police Council, from being honoured on 1st September?

Mr. Barnett

The hon. Gentleman will not have to wait too long to see what is in the White Paper.

Mr. Grimond

While I agree, contrary to some hon. Members, with the analysis made by the right hon. Gentleman, may I ask whether in drawing up his proposals for tomorrow the Chancellor will bear very much in mind the regional differences in the country and the entirely different economic circumstances as well as, in some places, great problems with labour?

Mr. Barnett

All these matters will be taken into account.

Mr. David Howell

The hon. Member for West Stirlingshire (Mr. Canavan) spoke of wage restriction and, as the Chief Secretary knows, the Chancellor spoke about a cash ceiling on pay in the public sector. May we have an indication of when these will commence? Will it be from 1st August with other pay norms, or from the next financial year? If so, how will that affect the Chief Secretary's figure of a £3 billion to £4 billion increase in public sector pay in the current year?

Mr. Barnett

I know that the hon. Member is a patient man. He will not have to wait too long. He will have all the answers tomorrow.