§ 19. Mr. Sorensenasked the Secretary of State for the Colonies what regulations in respect of the price of commodities have operated in the Gold Coast and in other West African Colonies during the past five years; to what extent commodity prices had risen before the Gold Coast boycott; to what extent they have fallen since then; what steps have been taken to increase local supply; and to what extent the cost of living in the Gold Coast has risen disproportionately to earnings.
§ The Under-Secretary of State for Foreign Affairs (Mr. Mayhew)I have been asked to reply. As the answer is rather long, I will, with my hon. Friend's permission, circulate it in the OFFICIAL REPORT.
§ Mr. SorensenIs it not true that, in fact, there is a gross disparity between the increase in wages, on the one hand, and prices, on the other, and seeing that commodity prices did come down owing to the boycott, why was not action taken before to see that they came down to a reasonable level?
§ Mr. MayhewI cannot altogether accept the first part of that supplementary question, but the facts and figures are plainly stated in the reply to which, perhaps, I may refer my hon. Friend.
1795 Following is the reply: In the Gold Coast the prices of foodstuffs and of other essential articles have been controlled by orders under the Defence Regulations since the outbreak of war in 1939. These orders have been amended and prices varied from time to time. Similar control has been in force in Sierra Leone since 1940 and in Nigeria and the Gambia since 1943.
Commodity prices as a whole have risen over the past five years to a varying degree. In the Gold Coast the rise in the price of foodstuffs over this period ranged from 30 per cent. to 50 per cent.; the price of textiles rose in most cases by approximately 50 per cent. The figures in the other Territories are generally in accord.
There was no change in prices charged by importing firms after the boycott, except for certain lines of textiles, which were reduced by varying amounts up to 20 per cent. The effect of the boycott on prices was most marked in the retail market, owing to selling prices being checked by the Native Authorities.
The only local supplies which can be substantially increased are foodstuffs, and campaigns for greater production have been intensively pursued in recent years. Availability of manufactured consumer goods is inevitably restricted by world shortages and the need to restrict imports from hard currency areas to essentials.
By August, 1947, minimum 'wages in the Gold Coast had risen by some 100 to 150 per cent. above those of 1939, and were considered to be satisfactory in relation to the increased cost of living. The price paid to producers of cocoa has risen from 7s. per load in 1943 to 40s. in 1948. The inflationary effects of this increase and of restrospective payments of wage increases has since led to a rise in the price of consumer goods in the retail trades which cater for the African population. Such increases in the supplies of goods as have been possible in spite of the factors mentioned above are limiting the effect of this rise, with the result that minimum wage levels are today higher than in 1939 in relation to commodity price levels.