§ 62. Mr. Warbeyasked the Secretary of State for Foreign Affairs what commodities are still subject to maximum prices orders in Western Germany; and what has been the average increase in the permitted price of these commodities since the introduction of currency reform.
§ Mr. MayhewAs the answer is long and detailed, I will, with permission, circulate it in the OFFICIAL REPORT.
§ Following is the answer:
§ The commodities which are subject to maximum price orders are listed as follows, with an indication of the price increases which have taken place since currency reform:
- Hard coal and coke—30 per cent. increase.
- Brown coal—35/50 per cent. increase.
- Iron and Steel—No change.
- Iron ore and pig iron—No change.
- Scrap—No change.
- Rolled and forged products—No change.
- Petrol, oil and liquid fuel—No change.
- Electricity and gas—No change.
- Water—20 per cent. increase.
- Fertilisers—110/210 per cent. increase.
- Insecticides—No change.
- Soap—No change.
- Insulin—No change.
- Penicillin—74 per cent. reduction.
§ It will be seen from the above that it is not practicable to state a figure for the average increase in price.
§ Non-ferrous metals are also subject to maximum price orders, but in view of the large number of such items and the considerable variations in prices of the individual items since currency reform, it is again not practicable to give a figure of the average decrease for non-ferrous metals as a whole which would be of any value. The changes in price of the various metals are given accordingly:
- Lead—61 per cent. increase.
- Zinc—40 per cent. increase.
- Copper—23 per cent. increase.
- Cadmium—8 per cent. increase.
- Nickel—5 per cent. increase.
- Aluminium—31 per cent. increase.
- Tin—33 per cent. increase.
- Antimony—12 per cent. increase.
- Bismuth—15 per cent. increase.
- Magnesium—No change.
- Cobalt—19 per cent. reduction.
- Mercury—32 per cent. reduction.
§ It is not possible to form a clear picture of the extent of the controls exercised with regard to the prices of basic commodities without taking into account the commodities which are still subject to fixed price orders.
1271§ The following list gives details of the principal commodities (with their increases in price) which come into this category:
- Grain and grain products—3/28 per cent. increase.
- Bread—5/35 per cent. increase.
- Potatoes—40 per cent. increase.
- Oilseeds—100 per cent. increase.
- Sugar—No change.
- Butter—No change.
- Slaughter cattle—18/37 per cent. increase.
§ 63. Mr. Warbeyasked the Secretary of State for Foreign Affairs what has been the average rise in the prices of footwear and clothing respectively in Western Germany since the removal of the price—stop in April, 1948; and what has been the average increase in wages during the same period.
§ Mr. MayhewThe cost of footwear in the Western zones has risen by about 55 per cent.; clothing by about 25 per cent. These figures, however, are very approximate, owing to the considerable price variations in the numerous qualities of both items.
With regard to the second part of the Question, it is thought that approximately one-third of the wage earners have increased their wages by negotiation by up to 15 per cent. since April, 1948. Weekly wages have increased on the average by 9 per cent. for males and 11 per cent. for females as against increases for workers paid by the hour by 4 per cent. and 6 per cent. respectively. The greater increase in weekly wages is accounted for by the longer hours worked generally by wage earners.
§ Mr. WarbeyWill my right hon. Friend look into this matter again, because according to information which I have had from reliable people on the spot, the increase in prices has been more of the order of 300 per cent., and there are obvious signs of serious inflation developing in Western Germany? Will he, therefore, seek further information on this matter?
§ Mr. MayhewI did stress that my figures were very approximate, but I have no reason to suppose that they vary one side more than the other. I would emphasise that the great difference in the last few months is that shoes and clothes 1272 can be obtained at legal prices instead of through the black market.
§ Mr. Henry StraussIn his original answer and in his answer to the supplementary question, the Minister said, "Very approximate." Surely, what he means is, "Approximate only "?
§ Mr. PiratinCan the Under-Secretary say, in the light of his answer, what steps the Government in Bizonia have taken in order to prevent this inflationary tendency?
§ Mr. H. StraussWill the hon. Gentleman answer my supplementary question?