Wilson Defends Policy

Press, Volume CVI, Issue 31121, 26 July 1966, Page 17

Wilson Defends Policy

(N.Z. Press Assn.—Copyright) LONDON, July 25. Mr Harold Wilson tonight defends his controversial wage and price freeze before critics from his own party when he explains his policy to a meeting of Labour Party leaders.

The freeze, announced on Wednesday, is the backbone of an austerity package designed to save the pound and bolster the British economy. The proposal is also under

’■> heavy scrutiny by Britain’s trade union leaders, who have ■ challenged it. ! The economic committee of , the 8.5 million-member Trade ’ Union Congress is to hold a ! meeting on Wednesday to de- • cide whether to recommend l to its members that they go along with Mr Wilson in not seeking a pay rise for a year. ■ Many union leaders, includ- ■ ing the former Minister of Technology, Mr Frank Cousins, head of the Transport and

General Workers’ Union, have bluntly asserted that they will fight the freeze to the end. Many Labour members of Parliament were reported stunned and demoralised by Mr Wilson’s “mini-budget” deflation plan, considering it too conservative and an abandonment of traditional party principles Left-wing members were also opposed to the Government’s intention to abandon the principle of full employ-

ment. Mr Wilson’s crisis measures were expected to put 500,000 people out of work.

Under strict interpretation, the wage freeze woyld eliminate agreements already reached, but not implemented, in pay rises for some 5.5 million workers. Another 500,000 would lose cost-of-living allowances and other benefits.

Some sources said the Prime Minister’s plan would affect 12 million of Britain’s 20-million working force. “If we could get the Government to agree in principle to move away from an indiscriminate veto over all pay increases,” a spokesman for the T.U.C. declared yesterday, “we might be able to hammer something out.” A censure motion against the Labour Government, brought by the Conservative Opposition, will be debated In Parliament tomorrow and Wednesday.