§ 52. Mr. SWANasked the Prime Minister, in the light of continued rise in the cost of living and the failure of the Profiteering Act to arrest increased prices or reduce cost of essentials of life so as to bring them within access of workers' wages, what policy the Government has to accomplish the same so as to cope with the general labour unrest arising from both high prices and inferior quality of articles purchased?
§ Mr. BONAR LAWI think the Profiteering Act, the full effect of which is not yet felt, is having a very considerable effect. There are very many causes, including increased wages, which are responsible for high prices. High prices can only be effectively reduced if there is a greater production of commodities.
§ Colonel WEDGWOODMight not high prices be reduced if the Government made both ends meet and stopped the inflation of currency?
§ Mr. BONAR LAWI think it will greatly help to reduce inflation as soon as we cease to be under the necessity of borrowing.
§ Mr. BONAR LAWThe lion. Member must realise there are many causes operating at different times and in different circumstances for the rise in prices, but I am satisfied that the main cause is inflation.