HC Deb 29 May 1956 vol 553 cc21-3
33. Mr. Lewis

asked the Chancellor of the Exchequer what has been the depreciation in the purchasing value of the £ sterling since June, 1954.

The Chancellor of the Exchequer (Mr. Harold Macmillan)

Taking the internal purchasing power of the £ as 20s. in June, 1954, the corresponding figure for April, 1956, is 18s. 3d. This estimate is based on the Consumer Price Index for 1954 to 1955 and the Index of Retail Prices thereafter.

Mr. Lewis

Is the Chancellor aware that, whereas when the Labour Government were in office world prices were continually rising, under the present Government world prices have been falling, or remaining static? Will he therefore explain why the cost of living has gone up faster in the last two years than in any similar period over the last eight or nine years? Can he say when the Government intend to implement the promises which they made from 1950 to 1956 about reducing the cost of living and making the £ worth something? Can we have some explanation?

Mr. Speaker

I think that that is enough for one supplementary question.

Mr. Macmillan

I feel that the hon. Member must have been taking the opportunity of the Recess to make speeches to his constituents, but I shall try to reserve this matter for another winding-up speech.

Mr. Jay

Can the Chancellor at least tell us how soon we will get on to the plateau of stability which he promised us in his speech at Newcastle this weekend?

Mr. Macmillan

I said then that, so far as I could see from the calculations given to me, it was not likely, from either the last round of wage increases, or the result of any action which the Government had taken on subsidies and other matters, that the Index would rise by more than two to three points.

Mr. H. Morrison

Will the Chancellor of the Exchequer circulate in the OFFICIAL REPORT the texts of the official Conservative posters at the General Elections of 1951 and 1950 promising that the cost of living would not go up, and that the Conservatives would protect the purse of the housewife?

Mr. Macmillan

It would be a mistake to use HANSARD for that purpose, otherwise we should have to go back to posters like "Rounding recovery corner" and all those others.

Mr. Speaker

We cannot debate this large matter now.

Mr. Lewis

On a point of order. In view of the completely unsatisfactory nature of the Chancellor's reply, I beg to give notice that, with your assistance, Mr. Speaker, I hope to raise the matter on the Adjournment.