Prices and Incomes (Standstill Orders)

Oral Answers to Questions — Employment and Productivity – in the House of Commons at 12:00 am on 4 December 1969.

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Photo of Mr David Crouch Mr David Crouch , Canterbury 12:00, 4 December 1969

asked the Secretary of State for Employment and Productivity if she will publish a list of the standstill orders or directions under the Prices and Incomes Acts, 1966, 1967 and 1968 at present in force, stating in each case the expiration date of the order or direction and the numbers of persons affected by each standstill relating to incomes.

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

There are two standstills at present in force, both relating to incomes. I am arranging for the information about these cases to be published in the OFFICIAL REPORT.

Photo of Mr David Crouch Mr David Crouch , Canterbury

What is the effect of the standstill orders on the level of aggregate demand in the economy?

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

The standstill orders flow from the general policy which itself is having an effect on the level of demand.

Photo of Mr Terence Higgins Mr Terence Higgins , Worthing

But is not the overall purpose of the policy to reduce the level of aggregate demand in relation to inflation? I am sure that the Minister, before imposing the orders, takes their effect into account.

Photo of Mr Harold Walker Mr Harold Walker , Doncaster

The overall purpose of the policy, among other things, is to relate the growth in incomes to the growth in output. The orders are part of that general policy.

Following is the information:

Statutory Standstills under the Prices and Incomes Acts at present in force

1. On a settlement reached on 7th February, 1969 relating to the pay of certain workers employed in the exhibition industry. The Awards and Settlements (Temporary Continuation of Standstill) (No. 2) Order 1969 (S.I. 1969 No. 953) extended the standstill until 17th February, 1970. This agreement covered about 4,800 workers. The Order does not apply to the settlement reached on 10th October and effective from September, 1969.

2. On an agreement relating to the pay of certain workers employed by members of the Association of Film Laboratory Employers. It is at present in force by virtue of Section 1(2)(a) of the Prices and Incomes Act, 1967, which provides for the continuation of a standstill imposed by direction for thirty days after the publication of an adverse report by the National Board for Prices and Incomes if the Secretary of State gives notice within 10 days of the publication of the report of a proposal to make an order extending the standstill. The N.B.P.I, report was published on 6th November and notice was given in the Gazette on 14th November. This standstill affects about 3,150 workers. An Order has been made, and will be laid and published on 5th December and come into operation on 6th December, extending the standstill until 7th February, 1970.