U.K. Economic Freeze To Run Full Course

Press, Volume CVI, Issue 31225, 24 November 1966, Page 17

U.K. Economic Freeze To Run Full Course

IX.Z.P.A.-Reuter—CopyrtgM)

LONDON, November 23.

The British Government yesterday warned that it planned only the smallest possible thaw during the second half of its 12-month economic freeze.

The Economics Minister, Mr Michael Stewart, warned in Parliament that the complete wage-price standstill enforced on July 20 would be relaxed during the second six-month period only in cases of genuine productivity agreements and hardship among lower-paid workers.

He ruled out any possible attempt at freeze-dodging in the form of shorter working hours or increased holiday s to compensate for lack of pay rises.

And he served notice that the Government would make exhaustive inquiries into productivity agreements to make sure they involved a real increase in efficiency and useful output. The government also ordered deferment of all longterm wage agreements or working week cuts scheduled for the first six months of 1967. It told manufacturers they must try to cushion the effects of the wages standstill by holding back on price increases and said the removal of import surcharges at the end of this month should help promote this. One notable exception to

the general rule will be the police who have been disgruntled for some time over wages, working conditions, and lack of staff. Police Rise i Mr Stewart said in view of the need to combat mounting ! crime, a police pay rise [planned for next July would ! be advanced four months. | Mr Stewart said the government would consult with the two main bodies grouping the country’s employers an workers the Confederation of British Industries and the Trades Union Congress for guidance in working out details of the period of severe restraint. The T.U.C. secretary-gen-eral, Mr George Woodcock, reacted with a comment that the government plans were “ambiguous” and said congress had several complaints against it. Many Cases Chiefly, the T.U.C. objected to the attempt to define what was meant by an acceptable productivity agreement, and they felt the approach to lower-paid workers would not

be as flexible as it would tor prices. I i They also thought the; Prices and Incomes Board—-watch-dog of freeze policy—would be physically unable to , cope with a flood of cases '

i which would be referred to lit, he said.

Britain’s biggest union the

1,500,000-member Transport Workers’ Union, criticised the government plan tonight and warned of “tragic increases” in unemployment and cutbacks in output and exports unless there was a return to economic expansion.

Major Firms The union is led by former Technology Minister, Mr Frank Cousins, who resigned from the Cabinet over the wage-restraint policy on July

The C. 8.1. representing ■nearly all major firms, said it accepted the necessity for a period of restraint “severe or otherwise.” But it disagreed with the government on the continued freeze of company dividends.