asked the Minister for Industry and Commerce if, in order to ensure that the wage and salary worker is not deprived of the benefits of the ninth round twelve per cent wage increase, and in order to curb the danger of inflationary consequences on export prices, he will state what steps the Government propose to take in order to make sure that the wage and salary increase is not passed back by the industrialist to the salary and wage earner in the form of higher prices.
Ceisteanna—Questions. Oral Answers. - Ninth Round of Salary and Wage Increases.
34.
The current upward revision of wages and salaries is taking place in the context of the expectation that the country's present rate of economic growth will be maintained. The realisation of that expectation clearly does not rest on Government action alone. It depends rather on the efforts of management and labour alike so to improve the efficiency and productivity of their industries that no significant increase in unit production costs will result from the increase in wages and salaries and that our competitive position in the home and export markets will not only remain unimpaired but will, if possible, be improved. If our unit production costs increase no action by the Government can prevent this from being reflected in an increase in the prices of the products. Accordingly, the aim of Government policy must be to continue to facilitate, in every possible way, the adaptation and modernisation measures which are being taken to safeguard our competitive position in freer trade conditions.
Would the Minister not agree that the Government also have a responsibility in maintaining price stability and in view of that and of the fact that there is a national wage agreement for approximately two and a half years, would he not now give an assurance to the House and the country that the turnover tax will not be increased during those two and a half years?
I am not responsible for the administration of the turnover tax.
It is not a question of administration.
In any event, it is a pre-Budget question and the Deputy knows the answer he would get from the Minister for Finance.
The Minister has a certain responsibility as well as the workers and others to maintain that stability. Would he not include in his original reply the undoubted fact that the Government have this responsibility to maintain stability in prices?
And a great interest.
The Minister did not mention it.
The Minister accepts that the trade union movement has accepted responsibility for pinning wage demands for a period of two years. Surely the Minister must know that there has been virtually no period in our history in which a wage increase has not been followed by a price rise——
That is a statement, not a question.
Will the Minister now reconsider his attitude to the decision not to insist on curbing prices——
That is a statement and not a question.
I am precluded by the Ceann Comhairle's ruling from answering that question.
It is a statement.
The Deputy should know that there is no force that will keep down prices when costs of production increase.
The Government can also increase prices.
Can the Minister name one industry that has absorbed an increase in wages in the past three or four years?
(Interruptions.)
I am calling Question No. 35.
Perhaps they are going to double the turnover tax.
(Interruptions.)
The Deputies would love to throw a spanner into the works.
The Taoiseach wanted to do that with his eight per cent, not the Deputies.