§ 19. Mr. John Townendasked the Secretary of State for Employment if he will estimate the likely effect on jobs of the revised proposals by wages councils for increased levels of pay in their sectors.
§ Mr. TebbitI have no precise estimates of the effects of the recent wages awards. However, it is obvious that the higher the minimum rates wages councils set, the fewer jobs there will be.
§ Mr. TownendI thank my right hon. Friend for using his influence to reduce the original proposals, which could 662 have been so damaging. Does he accept that the councils' activities reduce job opportunities for young people? Althouh I accept that, due to international obligations, it is impossible to abolish the councils now, will my right hon. Friend consider removing those aged under 21 from their jurisdiction?
§ Mr. TebbitMy hon. Friend overrates my influence. I merely drew the attention of the chairmen and members of the wages councils to the implications of what they proposed and they, on their own initiative, volunteered to change their proposals. I am advised that it would be impossible to carry out my hon. Friend's proposal while remaining in line with our obligations under ILO convention 26.