§ Q1. Mr. Tim Rentonasked the Prime Minister if the public speech on prices by the Secretary of State for Education and Science at the National Liberal Club on 9th July 1977 represents Government policy.
§ The Prime Minister (Mr. James Callaghan)In so far as my right hon. Friend's speech touched upon Government policy, the answer to the hon. Member's Question is "Yes".
§ Mr. RentonHow can it be the Prime Minister's policy both to support his right hon. Friend in her vigorous denunciation of the damage caused by constant critics of our EEC membership and, at the same time, to permit a quarter of his Government to vote against direct elections? When will he stop imitating Dr. Doolittle's push-me-pull-you, facing both ways at once? What steps will he take to remedy that damage, particularly in the light of the decisions taken yesterday by the Labour Party National Executive Committee?
§ The Prime MinisterThe Government's policy on the European Community is quite clear, and I have nothing to add.
§ Mr. William HamiltonHas my right hon. Friend seen the recent statement made by the retiring Chairman of the Price Commission, who indicated that if there is a responsible approach to wage demands and prices there is a reasonable prospect of getting inflation down to a 10 per cent. yearly average by the end of this year? In that context, will he also look at a report in the Scottish Daily Record this morning, showing that in some instances the price of beer has gone up by at least 30 per cent. in the past year? Unless we tackle that problem, we shall not get the response from the trade unions that we desire.
§ The Prime MinisterI believe that my right hon. Friend the Secretary of State for Prices and Consumer Protection is looking into the matter of beer prices. Generally, it is the case that if there are moderate increases in earnings during the 928 next 12 months the country can look forward to a substantial reduction in the rate of inflation. Let me just list for the House some of the contributions to this end. In milk prices, railway fares, gas prices and postal charges there will be no increase before the end of 1977. In electricity charges and telephone charges there will be no increase before the spring of 1978. That, together with the reductions in income tax, which will find their way into the wage packet during the month of August—including a lump sum, in two instalments—provides a most favourable climate for wage bargainers during the next 12 months. I believe that against that background, and despite the jeers of the Opposition, trade union bargainers will want to ensure that inflation does not go rampant again.