§ 13. Mr. Kenneth Carlisleasked the Chancellor of the Exchequer by how much unit wage costs in manufacturing have risen in the last year.
§ Mr. HayhoeFor the three months to September, manufacturing unit wage costs are estimated to have increased by 2.8 per cent. over the same period a year ago.
§ Mr. CarlisleDoes my hon. Friend agree that it is encouraging that the number of people at work has risen in recent months? Does he further agree that if this desirable trend is to continue, wage restraint is essential?
§ Mr. HayhoeI endorse what my hon. Friend says. Sensible wage settlements, improved productivity and the imaginative use of new technology all make British goods more competitive. Jobs are created by customers and the more they buy British goods and services the better.
§ Mr. BarronIs the Minister aware that since the Conservatives took office in 1979 the real take-home pay of the average worker with two children has increased by 5.7 per cent. whereas a person with two children and an income of £80,000-plus a year has had a 54 per cent. rise in real terms in take-home pay—a 10:1 bias in favour of the rich?
§ Mr. HayhoeIt was perfectly clear when we took office that the higher rates of taxation were a serious impediment to incentive and it was right that they should be reduced. However, I reassert that, for those on average earnings, there has been a real increase in the standard of living during our period in office.