§ 25. Mr. Montgomery
asked the Secretary of State for Employment what estimate his Department has made of the effect on the cost of living index of recent major pay awards.
§ Mr. Maurice Macmillan
Labour costs represent by far the largest single component of industrial costs; so pay settlements above the increase in productivity are bound to lead to price increases. The Government will continue to emphasise the need to secure more moderate pay settlements as the basis for greater price stability.