§ 44. Mr. Osborneasked the President of the Board of Trade what has been the response to his appeal last October for the reduction of our costs of production; by how much have they been reduced; and if he is now satisfied with regard to our competitive position in world markets.
Mr. H. WilsonAlthough wage rates have been steady for some months, one important component of costs, imported raw materials, has risen substantially in price since September, 1949. The increase in United Kingdom export prices since devaluation reflects these increased costs but the promising course of export trade does not suggest impairment of our current competitive position. Indeed, 1540 there is evidence that in the most difficult markets the prices of our exports are highly competitive. In the longer run, however, our standard of living must depend on our competitive power and there will have to be reductions in our relative costs of production if we are to preserve our export position in an increasingly competitive world.
§ Mr. OsborneCan the Minister tell the House by how much our raw materials have increased since last October? Is it a greater increase than the saving we have been able to make in productive industry by increasing our efficiency?
Mr. WilsonIf the hon. Gentleman will put the question down, I will certainly give him the figures of the Board of Trade Index of Wholesale Prices.
§ Mr. Godfrey NicholsonWould the Minister not agree that our competitive power depends very largely upon the maintenance of the internal purchasing power of the pound sterling? What steps does he propose to urge upon his colleagues to that end?