§ 1. Mr. HANNONasked the President of the Board of Trade whether, seeing that the present cost-of-living index figure is based upon statistics of family budgets collected nearly 20 years ago, and that the index figure does not accurately represent the present-day cost of living, he proposes to proceed to the collection of the statistics of family budgets which will fairly represent the cost of living at the present time?
§ The MINISTER of LABOUR (Sir Montague Barlow)I have been asked to reply. The Ministry of Labour cost-of-living index number is always carefully defined as indicating the average increase in the cost of maintaining unchanged the pre-War standard of living of working-class families. For the purpose of such a calculation the use of pre-War budgets is strictly correct. When working-class conditions become more normal, it will, I think, be desirable that a new index number shall be calculated designed to show the changes in the cost of maintaining a normal post-War standard of living; but before this could be done a new inquiry into working-class expenditure would almost certainly be necessary. I propose to take up the consideration of an inquiry of this kind as soon as conditions become more normal.
§ Mr. HANNONCan the right hon. Gentleman communicate to the House, in view of the importance of the subject to industrial organisations all over Great Britain, how soon this inquiry can be set to work?
§ Mr. SEXTONIs the right hon. Gentleman not aware that the Board of Trade figures for the export trade are based on wholesale prices that do not bear any comparison with the retail prices to the consumer?
§ Mr. A. M. SAMUELHas the right hon. Gentleman noted the criticisms of Mr. James Stamp and others of these figures that they are entirely fallacious because they leave out of account very important factors?
§ Sir M. BARLOWI am aware that criticisms have been made on these figures of the Board of Trade, but I am also aware of the fact that more recently the critics have considerably modified their attitude with regard to the figures; and are satisfied, or decently satisfied, that they are on the proper, and the best, basis. The second question of the hon. Gentleman the Member for St. Helens is hardly a supplementary question to the original question, and should rather be put to the hon. Member who asked the question rather than to myself. As to when the inquiry will be set up I cannot give an answer beyond the original one; that is that it must depend upon conditions becoming reasonably normal. It is quite clear that any calculation based on conditions as at present would not form a reasonable basis for the future.
§ Sir W. DAVISONIs it not the fact that wages went up—
§ Mr. SPEAKERLieut. - Commander Kenworthy.