§ 59. Mr. Gourlay
asked the Chancellor of the Exchequer how many wage increases agreed in the last six months run counter to his incomes policy; and what action he intends to take.
§ Mr. Maudling
Many recent pay increases appear to be in line with the guidance which I offered in my Budget statement; others seem to be almost certainly out of line and others again cannot easily be assessed without closer examination. There is little doubt, however, that on average incomes are still rising faster than the underlying rate of growth of national productivity, and that the average level of settlement has been rising in the past six months. If this trend continues, it is bound to handicap the achievement of our214W national target for economic growth. I discussed this problem with my colleagues on the National Economic Development Council yesterday and the Council agreed to consider the matter further at a meeting specially arranged for this purpose.