HC Deb 22 June 1937 vol 325 cc991-3
7. Mr. Leach

asked the President of the Board of Trade whether he has observed that at the end of 1936 importers were buying at prices less than 1914; that wholesale prices in this country were 39 per cent. higher than 1914 and the cost of living 52 per cent. higher; what is the explanation of these discrepancies; and whether any steps can be taken to reduce or abolish them?

Mr. Stanley

All imported goods are not included in the movements in price recorded by any wholesale prices index number, and the cost of living index number is even more limited in scope as regards the commodities included. Moreover, both these index numbers include home-produced as well as imported goods, and the cost of living index number also includes rent. In the circumstances no correspondence can be expected between the three movements in prices to which the hon. Member refers. He will remember in this connection the more detailed explanation given to him by my predecessor in July last.

Mr. Leach

Does not the President agree that there is a relationship between these three sets of figures; and is not one of the chief reasons for the discrepancies the tariff policy of the Government, which the right hon. Gentleman has himself condemned?

Mr. Stanley

It is not one of the reasons, I have not condemned it, and, as I have said, there is no exact relationship between these three price movements.

10. Mr. Shinwell

asked the President of the Board of Trade whether the Food Council have had under consideration the increase in the cost of commodities, particularly as regards foodstuffs; and whether any action is proposed?

Mr. Stanley

I cannot usefully add to the answer given by my predecessor to the question which the hon. Member put on the same subject on 13th April.

Mr. Shinwell

Will the right hon. Gentleman be good enough to tell the House what is the use of the Food Council?

Mr. Stanley

The Food Council produces very valuable reports, and when appropriate their report is acted upon by the Government.

Mr. Shinwell

Do I understand that the Minister is satisfied with the Food Council and its investigations?

Mr. Stanley

Of course we all recognise that many individuals and bodies require stimulating in some way.

Captain Harold Balfour

Can the President confirm the fact that while the level of wages is rising, the average level of food prices for 1937 is still ten points below that of 1930 when the hon. Member and his party were in office?

Mr. Paling

Is it not true that the rise in the cost of living has wiped out any advance in wages.