HC Deb 19 January 1944 vol 396 cc184-5
77. Mr. Pethick-Lawrence

asked the Secretary of State for the Colonies what steps are being taken by the Government to combat inflation in Palestine.

Colonel Stanley

Considerable efforts have been made by the Government of Palestine to combat inflation. They include the control of prices and distribution, rationing and subsidisation of essential commodities, and measures to absorb surplus purchasing power by substantially increased direct and indirect taxation and by savings campaigns. The inflationary tendencies arise largely from circumstances which are outside the control of the Palestine Government, such as large military expenditure, a shortage of commodities and increased shipping costs. Nevertheless the official cost of living figure has been bronught down from 248 in June, 1943, to 230 in December.

Mr. Pethick-Lawrence

Does the right hon. and gallant Gentleman realise that whatever may be the official cost of living a good deal of money does go in black market transactions, where the cost is very much heavier?

Colonel Stanley

Of course, we try to stop this as much as possible and I am not at all complacent about these figures, but if the right hon. Gentleman will compare them with the figures of surrounding countries in the Middle East I think he will find the comparison favourable to them.

Captain Alan Graham

Is the right hon. and gallant Gentleman taking similar measures in regard to conditions in Cyprus?

Colonel Stanley

Perhaps my hon. and gallant Friend will put that Question down.