U.K. WAGES RESTRAINT

Press, Volume C, Issue 29680, 25 November 1961, Page 13

U.K. WAGES RESTRAINT

Maintenance Of Policy (N.Z.P A.-Reuter—Copyright) LONDON, November 23. The British Government would not abandon its policy of urging restraint on wage increases so as to keep down costs and help British exports, the Prime Minister (Mr Macmillan) told the House of Commons) yesterday. Mr Macmillan said a recent decision to increase wages by the State-run electricity industry was a set-back to Government policy, but in spite of ,this the Government would carry on with its campaign. Mr Macmillan said there had been some improvement in the nation’s economy as a result of the Government’s short-term policies, but the economic situation remained serious The Labour Opposition leader (Mr Gaitskell) said the Government had got- itself into an impossible position with its pay pause “because of its unfairness between different groups of workers.” It would be wise to drop the policy and start free and frank negotiations with unions and employers. The Prime Minister replied that it was exactly these negotiations and discussions that were going on.