HC Deb 13 July 1971 vol 821 cc70-1W
Mr. Harold Walker

asked the Secretary of State for Employment what annual rate of increase will be needed for average earnings in the United Kingdom to reach parity with the European Economic Community by 1975, having regard to the current rate of growth within the European Economic Community.

Mr. Bryan

A reliable estimate cannot be given. It might be very misleading to project the recent growth of earnings in the Community as far ahead as 1975. As the White Paper indicates, the important point is that real earnings have been rising faster in the Community countries than in the United Kingdom. If we seize our opportunities as members, we should be able to share in the Community's greater prosperity. In the meantime, the more successful we are in keeping down costs the sooner we shall reduce the gap between ourselves and the countries of the Community.

Mr. Harold Walker

asked the Secretary of State for Employment if the earnings of engineering workers are between a quarter and a half less on average than the earnings levels within the European Economic Community, as described in the White Paper, Command No. 4715.

Mr. Bryan

Insufficient data are available to make a meaningful comparison of average earnings for individual industries.

Mr. Harold Walker

asked the Secretary of State for Employment why he will not revise Government policy towards public sector pay settlements to enable average earnings to rise by between a quarter and a half and thus come closer to the European Economic Community levels described in White Paper Command No. 4715.

Mr. Bryan

The Government's policy towards pay settlements is and must continue to be determined by the economic situation in this country. The Government's view is that in the current situation it is essential to reduce the present excessive rate of inflation as an indispensable condition for improving the real wages of all groups. There is no separate policy towards public sector pay settlements.