§ Mr. Sheldonasked the First Secretary of State and Secretary of State for Economic Affairs what arrangements he has made for developing and applying the prices and incomes policy.
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§ Mr. George BrownI remain primarily responsible, in close consultation with my right hon. Friend the Prime Minister and other colleagues and with bodies representative of management and of workers, for the general development of the prices and incomes policy and for co-ordinating Government views and actions on all questions affecting prices and incomes. As the effectiveness of the policy spreads through the economy, it would be undesirable—and indeed impracticable—to centralise Government responsibilities in this field in the hands of a single Minister or Department. The primary responsibility for Government action relating to the application of the policy to any particular case will accordingly lie with the Minister of Labour in relation to pay and conditions in the private sector (except that the Agricultural Ministers will retain their special responsibilities for agricultural wages). In cases relating to pay and conditions in the public sector (i.e. the public services and nationalised industries) the primary responsibility for action will lie with the Minister most closely concerned with the service or industry in question. Action relating to prices and charges will be taken by the Minister responsible for the industry or service concerned, whether in the private or nationalised sector.
References to the National Board for Prices and Incomes will in future normally be made jointly by the appropriate departmental Minister and myself. The former will usually take the lead in following up in discussion with the parties concerned the Board's recommendations, in consultation with my Department. I shall remain responsible for general questions relating to the application of the policy, for questions which concern a number of Departments, and also for the application of the policy to non-employment incomes (other than cases in which any of my colleagues already carries a specific responsibility).
The object of these arrangements is to ensure that the prices and incomes policy is developed in a balanced and coordinated manner while avoiding undue centralisation of activity on individual cases. They do not necessitate any change in the "early warning" procedures which have been agreed following the publication of the White Paper last November (Cmnd. 2808).