I propose, with the permission of the Ceann Comhairle, to take Questions Nos. 10, 11, 12, 13 and 14 together.
It is made clear at several points in the White Paper that the Government's concern relates to the damage to the national economy which would occur if money incomes generally were further increased before national production had risen sufficiently. There is no suggestion that restraint should be exercised only in relation to increases in wages and salaries. On the contrary, it is emphasised that "general restraint is essential". It would not be reasonable to expect this general and voluntary restraint if the Government were itself to acquiesce at present in any claims for increases in wages and salaries in State or semi-State employments which would arouse expectations of similar increases in the private sector. This is why Departments and State-sponsored organisations have been advised not to accede for the present to claims which might have this effect. The restraint is clearly intended to be merely temporary until income increases can be applied without danger of a further rise in prices, curtailment of employment or damage to national economic progress. It is hoped that the proposed objective assessment of the economic position and potentialities referred to in paragraph 19 of the White Paper will assist those who have responsibilities in settling wage and salary rates in private employment in establishing a more orderly relationship between income increases and the growth of national production.
In regard to profits, attention may be drawn to the following paragraph (No. 15) of the White Paper:
"Profits, industrial and other, form a much smaller proportion of national income than do wages and salaries. Higher profit distributions not associated with higher production or sales have, however, even if on a smaller scale, the same consequences as higher incomes not related to output. There is a special obligation on industrial managements to set, in this respect, an example to the community. Industrialists are now under pressure, through reduction of protection and higher costs, to increase efficiency; growth of profits is becoming dependent on expansion of sales in more competitive conditions."
It has already been announced that a further general reduction of our industrial protective tariffs will take place on 1 January, 1964, and an indication has been given by the Taoiseach that it would be desirable to achieve a reduction of the order of one-third by 1 January, 1965. The reduction of industrial tariffs on this basis will provide increased competition and thus impose an effective check on price levels.
So far as stabilisation of the cost of living is concerned, this will be most effectively ensured if the general level of incomes does not rise faster than output. Experience in the period 1958 to 1960, as recorded in paragraph 3 of the White Paper, bears this out.