asked the Minister for Finance if he will state the Government's current policy on incomes.
Ceisteanna — Questions. Oral Answers. - Government's Incomes Policy.
10.
In the Third Programme for Economic and Social Development the Government outlined the ways in which they hoped to bring about the development of an incomes policy which would be based, so far as possible, on voluntary co-operation. They indicated their hope that the Government's role, so far as negotiations relating to incomes were concerned, would be confined in large measure to providing an appropriate institutional framework and supplying economic guidance, while leaving the parties directly concerned the maximum freedom to determine their own affairs.
The NIEC report on incomes and prices policy restated the principles on which incomes policy should be based and made certain specific proposals. It was publicly welcomed by the Government as a most important report. The Government took immediate steps to bring about the major institutional innovation recommended — the setting up of the Employer/Labour Conference.
A voluntary incomes policy presupposes a willingness by those involved in negotiating income increases to work out together a pattern of increases which will help the country's economic growth, assist in slowing down price rises and protect the weaker sections of the community. As the NIEC itself has stated, new institutional arrangements of themselves will not solve the problem of inflation. If, however, the new arrangements are whole-heartedly supported by all concerned, then I am confident that it will be possible through them to work out a policy which will be in the common interest of our people. I am not convinced that a voluntary policy is beyond our capabilities. It is essential that no time be lost in putting such a policy into effect.
May I take it that the Minister agrees it would be impossible to have an incomes policy unless there was also a policy on prices and dividends?
Yes. The requirements of a policy of this nature have been clearly set out, as I have said, but the Deputy will appreciate that the question relates only to policy on incomes.
Surely the Minister agrees that we cannot have a policy on incomes which relates to wages and salaries——
Yes I do.
——which appears to be the general idea of some people when they talk about an incomes policy.
The Third Programme and the NIEC report make it quite clear that one has to approach all of these things at the one time.
Has the Minister listened to his colleague referring to it in a different context entirely from time to time?