§ Mr. Dickens
asked the Secretary of State for Economic Affairs how he proposes to strengthen the vetting arrangements to ensure that the rise in wages and 289W salaries does not exceed what the economy can afford over the next 12 months, as set out in paragraph 12 of the letter of intent sent by the Chancellor of the Exchequer to the International Monetary Fund on 23rd November, 1967.
§ Mr. Shore
The vetting arrangements for prices and incomes operated by Government Departments are being reviewed to ensure they operate effectively in the changing situation created by devaluation. Additional references will be made to the National Board for Prices and Incomes.
The Government is discussing with the Confederation of British Industry and Trades Union Congress the application of prices and incomes policy in the new economic situation. The T.U.C. have already announced that they will not regard increases in prices arising from the reduced external purchasing power of the £ as constituting in themselves justification for increases in wages.