HC Deb 13 March 1951 vol 485 cc1289-91
47. Mr. Osborne

asked the Chancellor of the Exchequer what was the estimated total loss of national capital, including overseas investments, during the 1939–45 war; and how much has been regained, excluding the $7,200,000,000 loans and gifts from Canada and America, since August, 1945.

Mr. Gaitskell

In table 12 of Cmd. 6707, the total loss of national capital during the last war was estimated very approximately at rather more than £7,000 million, or about a quarter of our prewar national wealth. Figures of domestic investment in this country and of the change in our external capital position since the war are shown in the National Income and the Balance of Payments White Papers. Apart from loans from Canada and U.S.A., which totalled £1,300 million, the external capital position has improved by some £750 million since the war. Gross domestic capital formation less sums allowed for depreciation amounts to about £5,000 million since the war. But no allowance is made for changes in the cost of capital equipment in computing this figure, which therefore cannot be properly compared with the war-time loss of capital.

Mr. Osborne

Allowing for the difference in replacement values, comparing pre-war with today, could the Chancellor say whether we have recaptured the national wealth which was lost during the war?

Mr. Gaitskell

From observations I would say that the total amount of physical capital available is greater than before the war, but it is very difficult to make the calculation on the basis of computation in accordance with changes in capital values.

Mr. Assheton

Does the figure of £7,000 million include war damage?

Mr. Gaitskell

Yes, Sir.

Mr. Assheton

In that case, how is it that the Chancellor told me the other day that he was unable to estimate the amount of war damage still outstanding?

Mr. Gaitskell

I do not quite see the relevance of that question.

Mr. Assheton

May I explain? I wanted the Chancellor of the Exchequer to insert in his financial statement a figure showing how much the Government estimated they still owed on account of war damage payments to be made in the future.

Mr. Gaitskell

I will certainly look into that, but I cannot see that it is very relevant to the total loss of capital during the war.