Prices and Incomes

Oral Answers to Questions — Employment and Productivity – in the House of Commons at 12:00 am on 31st March 1969.

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Photo of Mr John Biffen Mr John Biffen , Oswestry 12:00 am, 31st March 1969

asked the Secretary of State for Employment and Productivity what further talks she has had with the Trades Union Congress concerning a non-statutory incomes policy; and what consideration has been given in these discussions to the likely future rate of growth of the economy.

Photo of Mrs Barbara Castle Mrs Barbara Castle , Blackburn

I have nothing to add to the Answer I gave to the hon. Gentleman on 20th January.—[Vol. 776, c. 8–10.]

Photo of Mr John Biffen Mr John Biffen , Oswestry

Would the right hon. Lady not acknowledge that there is widespread interest in the development of her talks with the T.U.C.? So that we may all be informed of the lines on which they are proceeding, can she confirm that a non-statutory prices and incomes policy would involve the repeal of Parts II, III and IV of the Prices and Incomes Act, 1966?

Photo of Mrs Barbara Castle Mrs Barbara Castle , Blackburn

No. I cannot confirm anything of the sort. I have told the hon. Gentleman, and I repeat it, that consultations are going on about a future prices and incomes policy and what form it should take when the current legislation expires at the end of this year.

Photo of Mr Robert Carr Mr Robert Carr , Mitcham

Does the right hon. Lady not realise that consultations have been going on for a long time and that it is of great importance to both sides of industry that they should know as soon as possible what the position will be as from the end of this year? Is she aware that this is particularly so in view of the leaks in the Press at the weekend? Will she undertake to tell the House as soon as possible whether it is true that the Government have decided to give up this stupid and damaging policy?

Photo of Mrs Barbara Castle Mrs Barbara Castle , Blackburn

I should have thought that the right hon. Gentleman would be too experienced to confuse leaks and suppositions. I have said that the House will naturally wish to discuss this important matter in good time, before the preparation of any further legislation which might or might not be necessary. I stand by that position.

Photo of Mr David Mitchell Mr David Mitchell , Basingstoke

asked the Secretary of State for Employment and Productivity how many agreements have been considered by her Department which do not comply with the criteria in the current Prices and Incomes Act; and which have been allowed to continue.

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

Since March. 1968, 50 agreements submitted to my Department have not been approved, either because they failed to satisfy the criteria or because they exceeded the 3½ per cent. ceiling without justification on productivity grounds. Many agreements have been approved only after modification, following discussion with my Department. A special exception to the strict requirements of the White Paper was made in the case of the recent increase for agricultural workers, as my right hon. Friend explained in her statement on 30th January.—[Vol. 776, c. 1547 et seq.]

Photo of Mr David Mitchell Mr David Mitchell , Basingstoke

I understand that the Ford increase is 4½ per cent. above the maximum laid down in the White Paper. Can the hon. Gentleman assure us that the savings brought about by the elimination of strikes would be equivalent to a 4½ per cent. wage increase, and would he also agree—[HON. MEMBERS: "Too long."] Very well, I will be happy with an answer to that.

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

My right hon. Friend dealt very fully with the Ford settlement on 19th March, and I have nothing to add to what she then said.

Photo of Mr Eric Moonman Mr Eric Moonman , Billericay

In his original Answer to the hon. Member for Basingstoke (Mr. David Mitchell), my hon. Friend said that there had been 50 cases. Can he say what percentage the 50 cases represent of the total number? That would be particularly relevant.

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

I cannot give that information without notice, except to say that, in the last 12 months, we have dealt with some 2,000 cases.

Photo of Mr John Page Mr John Page , Harrow West

Under which criterion does expectation of continuity of production occur? Certainly it does not come under any of the four criteria in the White Paper.

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

My right hon. Friend explained on 19th March how this was an essential and important contributory factor to the productivity gains in this case. There is a later Question on the Order Paper dealing with this point.

Photo of Mr Ken Lomas Mr Ken Lomas , Huddersfield West

Is my hon. Friend saying that, out of the 2,000 cases handled by his Department, 1,950 have complied with the criteria?

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

All the cases did not necessarily involve productivity. To the best of my recollection, that is the total number of cases with which we have dealt seeking approval under the requirements of the policy in the last twelve month period for which figures are available.