HC Deb 16 March 1976 vol 907 cc1106-7
4. Mr. Madel

asked the Secretary of State for Employment what suggestions have been made to him by the TUC for a flat rate or percentage rate for the next phase of the incomes policy; and if he will make a statement on current discussions with the TUC on the next phase of that policy.

Mr. Foot

We have continuous discussions with representatives of the TUC about various aspects of pay policy, but no specific suggestions as described by the hon. Member have been put forward, and I do not think that any question of a detailed statement to the House about the next phase yet arises.

Mr. Madel

Is not the main concern of the TUC the creation of more jobs quickly, rather than higher pay? If the Government can bring themselves to concentrate—which may be difficult at present—will they publish suggested guidelines for phase 2, which should be a mix of percentage and flat rate but with an overall figure less than the present £6 a week?

Mr. Foot

It is true that the representatives of the TUC, like the rest of the country, are deeply concerned about the level of unemployment. That is one of the main considerations in their minds. I do not believe that the best way to get a new pay policy for the period starting on 1st August this year is for the Government to lay down the guidelines. It is much better for the Government to have discussions with the TUC and reach agreement with the TUC, as we did last time. The reason why the present policy works is that we went about it the right way.

Mr. George Rodgers

Would the Secretary of State care to comment on the initiative taken by the leaders of the three major trade unions in asking for consultations to be held with the National Executive Committee of the Labour Party and the Parliamentary Labour Party?

Mr. Foot

I entirely agree with my hon. Friend that those consultations should go ahead. I am sure that all hon. Members will agree that the statement made by Mr. Jones, Mr. David Basnett and Mr. Hugh Scanlon is of major importance in the history of the Government and the country—constructive, intelligent, and highly topical.