andMr. McQuillan asked the Minister for Finance whether, in the light of the increases which have taken place and which will take place as a result of the turnover tax, the Government will arrange for the granting forthwith of substantial increases to those of its employees whose wage and salary rates are finally determined by it.
Ceisteanna—Questions. Oral Answers. - Wage and Salary Increases.
38.
Conciliation and arbitration machinery operates in relation to the major proportion of State employment.Claims for pay increases are appropriate to be dealt with through that machinery.
May we take it then, in relation to the suggestion by the Minister recently that there could not be an increase in wages and salaries, that that is no longer binding after 1st November?
That will be dealt with in the Deputy's next question.
39.
andMr. McQuillan asked the Minister for Finance if he will indicate whether the policy on Incomes and Output set out in the Government White Paper is no longer binding on any wage and salary negotiating bodies.
The White Paper on Incomes and Output was based on the principle that increases in incomes should be related to increased national production in order to avoid price increases and balance of payments repercussions which would be damaging to the economy. This principle still stands. Since the White Paper was issued, I am glad to be able to report that there has been a correction of the tendency towards a widening of the gap between weekly earnings in industry and output per wage earner to which attention was drawn in paragraph 4 of the White Paper. The increase in productivity, though considerable, has not been sufficient to offset fully the increase in money earnings, with the result that the real value of these earnings has been reduced by higher prices.
So far as future policy is concerned, consultations with employer and labour interests have, as Deputies are aware, led to the setting up of the National Industrial Economic Council. The Council includes representatives nominated by the Government, the Irish Congress of Trade Unions, and employers, including the State bodies. The Council's terms of reference empower it to report on the principles to be applied in the development of the national economy and to make policy recommendations regarding the level and trend of incomes, including wages, salaries, profits, rents and other incomes.
It will obviously continue to be a matter of national concern, at a time of increasing competition, that the future relationship between incomes and output should help to promote the expansion of production and exports and thus be consistent with our development aims.
The Minister pointed out that the increase in prices had the effect of reducing the value of workers' incomes. How is it, then, that the Minister insists on artificially keeping down wages and salaries and will not take any steps at all to keep down prices which are the cause of the whole inflationary trend at the present time?
I do not think the Deputy is stating the position too clearly.
I am answering the Minister's reply.