HC Deb 29 January 1931 vol 247 cc1125-6
12. Mr. LOUIS SMITH

asked the Minister of Labour whether, in view of the fact that the cost-of-living index relating to selected retail prices was at 55 above 1914 on 1st December, 1930, whereas, owing to the decline in prices, the actual cost of living in various distrircts of London is not more than 30 above pre-War level, she proposes to widen the basis upon which the Department's figures are compiled in order to ascertain whether the official quotation is fully responding to the movements of the markets?

Mr. LAWSON

The cost-of-living index number purports to show "the average increase in the cost of maintaining unchanged the pre-War standard of living of working-class families," and there is no evidence, so far as I am aware, that it does not do this with substantial accuracy.

Mr. SMITH

As the usefulness of these figures depends on their accuracy, will the Parliamentary Secretary cause further investigations to be made by the Ministry?

Mr. LAWSON

As far as the Department is aware, this statement is sub- stantially accurate on the basis described. I am quite well aware that it is a matter of some difference of opinion, and, if anyone has any information regarding the subject, the Ministry will be pleased to exchange views.

Sir A. STEEL-MAITLAND

May I ask whether the Ministry of Labour will reconsider this question in view of the fact that there is a widespread opinion that the original basis of the cost-of-living figure is out-of-date and that a revised figure should be given?

Mr. LAWSON

As I have said, the Ministry is willing to consider suggestions on this subject from anyone who has information on the matter. Up to the present no better basis for arriving at this figure has been proposed.

Mr. THORNE

Is the Parliamentary Secretary aware that the retail prices in some of the largest houses in London are in direct conflict with the figures published by the Board of Trade?

Mr. ARTHUR MICHAEL SAMUEL

Arising out of that question, may I ask the Parliamentary Secretary whether he is aware that it has long been recognised that the Ministry of Labour index figures are on an entirely false basis and ought really to be reconstructed?

Mr. LAWSON

I am prepared to admit that there are conflicting views in regard to this matter and the Ministry is willing to consider suggestions.