HC Deb 27 January 1955 vol 536 cc421-2
44. Mr. Roy Jenkins

asked the Chancellor of the Exchequer whether he will give the respective increases during 1954 in prices, wage rates, dividends, company profits, and industrial share prices.

Mr. Maudling

Between December, 1953, and December, 1954, the Interim Index of Retail Prices rose by 4 per cent., the index of materials used in manufacturing industry—other than food—rose by 3 per cent., import prices rose by 3 per cent., and export prices remained unchanged; the index of weekly wage rates rose by 4 per cent. The Actuaries' Investment Index of the prices of ordinary shares rose by 34 per cent.

Statistics are not yet available of company profits earned, or of dividends paid, during 1954. But the analysis made by the "Economist" of the published accounts of a large number of companies shows an increase of 14 per cent. in the gross trading profits, and of 20 per cent. in ordinary dividends, of those companies whose reports were published in October to December, 1954, as compared with the previous year. The increase in gross trading profits, according to the same source, of all companies reporting during the full year 1954, was 11 per cent., and in ordinary dividends 18 per cent.

Mr. Jenkins

From what the Economic Secretary says, is it not clear that a fair summing-up of last year in this respect is that wage rates rose by about the same amount as prices; that profits rose by more than twice as much; that dividends rose by four times as much and share prices by seven times as much?

Mr. Maudling

I would only say to the hon. Member that if he wishes to make a fair summing-up, he should not take one year in isolation.

Mr. Gaitskell

Is the Economic Secretary aware that the gross maldistribution of income revealed by these figures is having a serious effect in industry? May I ask whether he and the Chancellor are proposing to take any steps to correct the astonishing boom in share prices and the continuing increase in dividends?

Mr. Maudling

The right hon. Gentleman knows perfectly well that if he wishes to talk about the distribution of income he should ask for the figures of net receipts of income after tax.