HC Deb 23 March 1967 vol 743 cc295-6W
6. Mr. Biffen

asked the First Secretary of State and Secretary of State for Economic Affairs if he is satisfied that the Confederation of British Industry can effectively supervise a prices policy applying to its constituent members; what proposals he has for a prices policy for those employers who are not members of the Confederation of British Industry; and if he will make a statement.

Mr. Frederick Lee

The Confederation of British Industry has not proposed any scheme for it to supervise a prices policy. The criteria for price behaviour and the arrangements for voluntary notification of proposed increases as set out in the White Paper (Cmnd. 3235) apply to all concerned in the determination of prices whether or not they are members of the C.B.I.

7. Mr. Biffen

asked the First Secretary of State and Secretary of State for Economic Affairs if he is satisfied that the Trades Union Congress can effectively supervise an incomes policy applying to trade unionists; what proposals he has for an incomes policy for employees who are not members of a trade union; and if he will make a statement.

Mr. Frederick Lee

The Government have warmly welcomed the voluntary scheme drawn up by the Trades Union Congress which has been endorsed by a Conference of union executives. The White Paper on Prices and Incomes Policy (Cmnd. 3235) sets out criteria which should guide all employers and employers after 30th June, 1967, and the arrangements for voluntary notification of claims and proposals to increase pay.

9. Mr. Spriggs

asked the First Secretary of State and Secretary of State for Economic Affairs what was the total number of wage increase agreements frozen as a result of the incomes standstill; what these amounted to in terms of cash and as a percentage in each case up to the latest convenient date; how many price increases were reported during the same period; what was the cause of the rise or fall in prices; what action he took to retain the real value of income; and how he proposes to control prices and incomes during the period of severe restraint.

Mr. Frederick Lee

I regret that the information requested in the first two parts of the Question is not available. There have been some 700 notifications of proposed price increases under the early warning arrangements of Cmnd. 3073 and Cmnd. 3150, but by no means all of these have been accepted as justified against the criteria. The Index of Retail Prices on 19th July, 1966, was 116.6 and on 21st February, 1967, was 118.6; the greater part of the increase was due to the effect of changes in taxation.

To restrain increases in prices is a prime objective of the Government's economic policy and the response to the Government's call for severe restraint has been outstandingly good. It has been necessary in only a few cases to exercise the temporary powers available under Part IV of the Prices and Incomes Act.

20. Mr. Kenneth Lewis

asked the First Secretary of State and Secretary of State for Economic Affairs what discussions he has had with the Confederation of British Industry and the Trades Union Congress on the future of the Government's prices and incomes policy; and if he will make a statement.

Mr. M. Stewart

I would refer the hon. Member to the Reply given him on 20th March by my right hon. Friend the Chancellor of the Duchy of Lancaster and to my statement to the House yesterday.—[Vol. 743, c.183.]