§ Mr. Arthur Lewisasked the Chancellor of the Exchequer whether he is aware that, according to the Commission of the European Economic Community's Annual Report on the short-term economic situation, adopted by the Council of Ministers in October, wage increases in member States in 1972 should be pegged to between 3 per cent. and 3½ per cent. and price rises to between 6 per cent. and 7 per cent. and that other 301W measures recommend that public spending should rise by no more than the increase in the gross national product; and to what extent on entry into the European Economic Community the United Kingdom will have to adopt such rules and practices.
§ Mr. HigginsI am aware of the Report which sets out guidelines for the member countries of the Community in 1972. The hon. Member has quoted the figures for wages and prices the wrong way round. The Report states that it is desirable to reduce the rise in prices to an annuual level of about 3 to 3½ per cent. in the last quarter of 1972 and to contain wage increases (including additional benefits) at an annual rate of about 6 to 7 per cent. As a member of the Community, the United Kingdom will take part in the formulation and discussion of similar reports.