HC Deb 10 July 1975 vol 895 cc740-2
Q5. Mr. Peter Morrison

asked the Prime Minister whether the public speech by the Secretary of State for the Environment at Brighton on 25th June on expenditure levels represents Government policy.

The Prime Minister

Yes, Sir.

Mr. Peter Morrison

What would be the Prime Minister's attitude to councillors who increase wages and salaries above the 10 per cent. norm? Will he support them just as he supported the Clay Cross councillors?

The Prime Minister

The hon. Member will, I hope, await the White Paper tomorrow, because in the attack on inflation the question of local authority employment is obviously important. Local authority employment has increased considerably over recent years, under successive Governments, and of course inflation affects them particularly hard because they are so labour-intensive and have a high employment ratio. The hon. Gentleman will recognise that these are problems which must be tackled. I hope that he will approve what is suggested in the White Paper.

Mr. Heffer

If my right hon. Friend should go to the Borders, Brighton or anywhere else, would he care to explain to the electorate how it was that in the election manifesto of the Labour Party in October last year we said that we would not introduce any forms of legislation to deal with incomes? If to-tomorrow the White Paper indicates a back-up or any other type of system which means legislation would he then explain how this fits in with our manifesto policy? Would he also explain to the electorate whether during the election campaign my hon. Friends and his hon. Friends in the Government were knaves or fools?

The Prime Minister

My hon. Friend also will be awaiting the publication of the White Paper with anxiety. With his knowledge of the manifesto—and I think my knowledge is equal to his—he will remember that the important and key section of the manifesto said that the Government's highest priority would be the attack on inflation. [Interruption.] I think my hon. Friend was referring to the October manifesto. Even with his highly developed critical faculties, I think that he will feel that what we are proposing is of the highest relevance to that. Some of the other things he quotes or purports to quote from the manifesto are not exactly as he quotes them.

Mr. Charles Morrison

Given that in local government and in nearly every industry there are agreed wage levels, but given also that regrettably there is bound to be considerable unemployment in the near future among school leavers, would the right hon. Gentleman say that it was better that schools leavers should remain unemployed or would he advise employers to employ them below agreed wage levels?

The Prime Minister

No, Sir, I do not give that advice. I agree with the hon. Gentleman that unemployment is a very serious problem which arises for school leavers at this time, as it did three or four years ago. He will again, I think, —I am sorry to have to give this answer once again—find it interesting to see what we say on this matter in the White Paper.

Mr. Kilroy-Silk

If the TUC are voluntarily to restrain wages, will the Prime Minister say in what way the Government will control the incomes of those who are not members of or affiliated to the TUC, and in particular will he give an assurance to the House that this policy will not result in an expense account bonanza?

The Prime Minister

This Question refers to Brighton, and I am glad to be able to tell my hon. Friend that I shall be visiting his constituency tomorrow—the part that used to be in my own. [An HON. MEMBER: "Is that a promise or a threat?"] As far as they are concerned, it is a promise. They seem to like having me in Kirkby. My hon. Friend will, I am sure, also be prepared to wait for the White Paper, which will have been published by the time I arrive in his constituency.