§ 21. Sir Ian Fraserasked the Minister of Labour if he will give the House a formula which will enable comparison to be made between the interim index of retail prices and the old cost-of-living index which it replaced.
§ The Minister of Labour (Mr. Isaacs)The former cost-of-living index was calculated with reference to living habits of 1914, and it was abandoned in 1947 because this limited and out-of-date basis had ceased to be appropriate for the purpose of measuring changes in prices 177 under current living conditions. The present index is radically different from the former cost-of-living index, both in its scope and in its method of construction, and it is not possible to arrive at satisfactory long-term comparisons of price levels by linking these two indices.
§ Sir I. FraserBut does the right hon. Gentleman recall that an earlier Minister of Pensions made a promise that if under the old index the figure reached a certain point, then a rise in the basic rate would be granted? It is therefore a matter of interest and justice for three quarters of a million ex-Service men to have some method of judging whether that promise ought now to be implemented.
§ Mr. IsaacsI must plead ignorance of the point to which the hon. Gentleman referred. I will look it up and see if there is anything in that which comes within my jurisdiction.
§ Sir I. FraserWill the Minister try to find a way in which satisfaction can be given in judging the two standards?
§ Mr. IsaacsThat is a matter which was not brought out in the original Question. I have promised to look into this point raised by the supplementary question of the hon. Gentleman, and I must leave it at that.
§ Colonel J. R. H. HutchisonWould not the right hon. Gentleman agree that the new cost-of-living index must also be out of date, as would be any index which shows—
§ Mr. SpeakerThe hon. and gallant Member is not asking for information, but expressing an opinion, which is not in order on supplementary questions.