National Production (Hansard, 21 October 1952)

§ 27. Mr. Lewis
asked the Chancellor of the Exchequer if he is aware of the fall in national production since the last Budget; and what action he proposes to take by way of incentive or other means to improve the level of productivity.

§ Mr. R. A. Butler
The figures for production during the summer months are always rather unreliable, but it is clear that they do indicate some decline below the levels forecast last March. Certain incentives have been given, but the broad general problem remains one for industry backed in every way possible by the Government and public opinion.

§ Mr. Lewis
Yes, but is the Chancellor aware that the very small reliefs he gave to the workers in the Budget have been completely wiped out by the rapid rise in the cost of living? Is he aware that the easiest and speediest way of getting the workers to produce more is to carry out the Tory promise to reduce the cost of living, and when is he going to do something about that?

§ Mr. Butler
Except in the respects to which I have referred earlier, there are signs—as I have said several times this afternoon—that the cost of living index is showing signs of being actually reduced, which is a very satisfactory development and one which I see no reason to suppose may not continue.

§ Mr. Shinwell
As the Question relates not so much to the cost of living as to increased productivity, and in view of the declaration at the recent Conservative Party conference about the need for increased production, can the right hon. Gentleman say in a sentence or two what the Government really intend to do in a specific form to increase production?

§ Mr. Butler
The first thing the Government realise is that increased production depends upon those who guide industry, and particularly upon the efforts of the workers in industry who have, on the whole, such a fine record to their credit; and anything that can be done in those quarters will be backed by the Government. Every possible incentive will be borne in mind, and the right hon. Gentleman may be quite satisfied that it is a matter of first-class importance to the Government.

§ Mr. Shinwell
Do we understand from that answer, quite clearly and unequivocally, that the Government themselves will do nothing in the matter, except to wait and see what the workers do and what the employers do? Is that the position?

§ Mr. Butler
No. The right hon. Gentleman has a quality for over-simplifying subjects and then distorting their meaning. What I do mean is that Her Majesty's Government, as at present constituted, have no intention of trying to run industry, or the lives of the workers, or their work for them, as no doubt the right hon. Gentleman and his friends would wish to do. What we do say is this, taking one example; had it not been for the promise of extra supplies of steel, which we shall be getting from the American Continent, it would not be possible to look for a future improvement in production due to that particular raw material.