HC Deb 08 November 1928 vol 222 cc215-6
40. Mr. STEPHEN

asked the Chancellor of the Exchequer the financial details upon which he has estimated that the workers of this country are£100,000,000 a year better off as a result of the reduction of wages?

Mr. CHURCHILL

Within the limits of a Parliamentary answer I can only give a rough indication. I stated in April last that the advantage gained by the mass of the people from the fall in the cost of living during the three previous years was at least£100,000,000 after making allowance for any wage redactions. In that period the cost of living fell over 6 per cent. The Ministry of Labour figure of the increase in rates of wages compared with pre-War fell 11 per cent. The net advantage of about 4½ per cent., applied to a figure of rather more than 2,400,000,000 for wages, salaries and old age and war pensions, amounts to some£108,000,000.

Mr. STEPHEN

Is it the view of the Government that the way to improve the condition of the working class in this country is by reducing their wages?

Mr. CHURCHILL

No, by reducing the cost of living.

Mr. CLYNES

Inasmuch as the total fall is estimated at£600,000,000, does it mean that the net loss to the workers is still£500,000,000 a year? May I also ask whether in reaching that estimate of£100,000,000 the right hon. Gentleman consulted representatives of the workers as to its meaning?

Mr. CHURCHILL

I have given the data on which I based the statement which I made, and it can be judged on its merits.

Mr. PETHICK-LAWRENCE

Has the right hon. Gentleman also made any estimate of the advantage falling to the rentier class through this reduction?

Mr. R. RICHARDSON

In this calculation, has the right hon. Gentleman taken into account the huge deficiency piled up against the miners, which they will be called upon to pay when better trade comes?

Mr. CHURCHILL

I have given the data on which my statement is based. As regards the supplementary question of the hon. Member for West Leicester (Mr. Pethick-Lawrence), our position is definitely that a reduction in the cost of living is a high object of government.

Mr. W. THORNE

By putting 33⅓ per cent. on some articles!