HL Deb 21 February 1979 vol 398 cc1811-3

2.45 p.m.

Baroness EMMET of AMBERLEY

My Lords, I beg leave to ask the Question which stands in my name on the Order Paper.

The Question was as follows:

To ask Her Majesty's Government what they anticipate to be the level of pay increases in the current financial year, and what consequential revisions are being considered to the latest White Paper on expenditure plans.

The SOLICITOR-GENERAL for SCOTLAND (Lord McCluskey)

My Lords, the Government's objective for the current pay round is to secure settlements as close as possible to the guidelines announced last July. The number of double-figure settlements is still comparatively small. But if the impact of such settlements were to assume significant proportions, the Government would take whatever action proved necessary to adhere to their fiscal and monetary policies.

Baroness EMMET of AMBERLEY

My Lords, I thank the Minister for that Answer, but is it the intention of Her Majesty's Government—I hope that it is not—to transfer the costs of higher wages from the majority of people in the country to the minority, in the shape of transferring from the taxpayer to the ratepayer? Secondly, does he not think that it is time that a campaign was started among our young people, in the universities and especially in the teacher training colleges, to impress upon them that higher wages without increased productivity and tax cuts simply increase the costs of the housewife's shopping basket and diminish our competitive capacity in the world as regards trade?

Lord McCLUSKEY

My Lords, first, as regards the suggestion that the Government might be considering transferring the burden to others, the Government's position is plain. The Government will not finance inflation either directly or by making money available to local authorities. So far as a campaign is concerned, I should have thought that the Government's position and, indeed, the position of Parliament in relation to inflation, is absolutely plain.

Earl FERRERS

My Lords, can the noble and learned Lord say whether it is not contrary to precedent, if not to the Rules of Procedure, for noble Lords to carry advertisements on their person when in the Chamber?

Lord McCLUSKEY

My Lords, I am not sure that that question arises out of the Question on the Order Paper. However, if the noble Earl will consult the noble Lord the Chief Whip for the Opposition, he will find that before I placed this particular affirmation where it now is, I consulted the noble Lord, Lord Denham. I sometimes feel a little deprived in this Chamber that I cannot, like so many noble Lords opposite, wear an old school tie. So, on the one occasion when I get a chance publicly to declare my faith in devolution to Scotland, why should I be denied the opportunity?

Lord HAILSHAM of SAINT MARY-LEBONE

My Lords, would it not be better if Ministers displaying this device answered as briefly as the device indicates?

Lord McCLUSKEY

No, my Lords.

Lord PARRY

My Lords, would my noble and learned friend agree that, if the answer were "Yes", it would be well received in parts of Wales.

Lord McCLUSKEY

Yes, my Lords.

Lord SANDYS

My Lords, will the noble and learned Lord refer back to the Question itself and the consequential revisions to which reference was made? Can the Government tell us what cuts will be necessary and whether they will be published in a document before the Financial Statement for 1979?

Lord McCLUSKEY

My Lords, I certainly shall not comment upon speculation as regards cuts. There has been such speculation, but there has been no Government decision as regards cuts. The House may like me to enlarge a little on the matter of cash limits. Of course the Government must take decisions in relation to cash limits for the coming year and announce them in a matter of a few weeks at the most. So these detailed cash limits are now under discussion, and they will be published shortly. I do not think that today I can properly comment upon what may be announced and decided.

Lord WEDDERBURN of CHARLTON

My Lords, will my noble friend accept that it is a matter of great joy to those of us who teach in higher education that his silence appeared to imply a rejection of the suggestion by the noble Baroness, Lady Emmet of Amberley, that there should be advice from the Government as to the particular ideological manner in which economics should be taught in the universities?

Lord McCLUSKEY

My Lords, I think that I can properly endorse that.