HC Deb 22 March 1956 vol 550 cc1455-6
27. Mr. H. Hynd

asked the Chancellor of the Exchequer by how much the purchasing value of the £ sterling has fallen since October, 1951; and why.

Mr. H. Brooke

The purchasing power of the £, taken as 20s. in October, 1951, is estimated to have been 2s. 5d. less in January, 1956. The calculation is based on the Consumer Price Index between 1951 and 1954 and the Interim Index of Retail Prices since then. In reply to the second part of the Question, I would ask the hon. Member to read the White Paper on "The Economic Implications of Full Employment" which is being published today.

Mr. Hynd

Seeing that the Government's policy to mend the hole in the purse has evidently failed, and indeed the hole is getting bigger, do the Government now propose to change their policy?

Mr. Brooke

I would advise the hon. Member to read this very interesting and important White Paper which is being published and then consider whether he wishes to ask further questions.

Mr. F. M. Bennett

Has my right hon. Friend comparable figures showing the fall in the value of the £ sterling between 1945 and 1951?

Mr. Brooke

Yes, Sir, I have. They have been given frequently before in the House, and they will be given again if asked for.

Mr. H. Wilson

Will the right hon. Gentleman say what new thoughts have suddenly struck the Government about this matter since the last Election in view of the fact that they are now producing a new White Paper? Will he say by how much the purchasing value of the £ sterling would have risen since October, 1951, if internal prices had followed the trend of world prices?

Mr. Brooke

The second part of the question would involve a calculation which I could not do in my head. May I say very seriously that I hope hon. and right hon. Members on both sides of the House will read the White Paper carefully. It is not a party document. [HON. MEMBERS: "Oh."] It contains a great deal of information which will be of general non-party interest.

Mr. Jay

As I am sure that the Financial Secretary has read this important White Paper already, can he tell us whether this fall in the value of the £ will cease from now on?

Mr. Brooke

I hope that we shall have—

Mr. Speaker

Order. I do not think that arises.

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