asked the Taoiseach if, in view of the ever-increasing cost of living, he will state the policy of the Government in regard to wage increases to offset increases in the cost of living which have arisen since 20th March, 1957.
Ceisteanna—Questions. Oral Answers. - Wage Increases.
There is no evidence that the cost of living is at the moment increasing. In fact, the Consumer Price Index showed a reduction of one point in November last, compared with the previous August.
As has been made clear in a number of public statements, the Government are convinced that higher money incomes not accompanied by increased productivity result in higher prices and, in our present circumstances, tend to create increased unemployment. This fact was recognised by both parties to the agreement reached last year between the Federated Union of Employers and the Provisional United Trade Union Organisation. The principles expressed in that agreement are in harmony with the Government's views.
Higher standards for workers are one of the main objectives of economic policy, but their realisation must follow, not precede, increased output and efficiency. In present circumstances, the Government consider that increased employment, following on expansion of trade, should be the predominant aim.
Surely the Parliamentary Secretary is not serious when he tells us that there is no evidence of a rise in the cost of living! Everybody knows quite well that the cost of living has risen considerably and is rising still.
As was stated in the reply, there is no evidence that it is doing so at the moment. In fact, there has been a drop of one point since August.
The Taoiseach is not in touch with the people. The cost of living is rising.