HC Deb 21 March 1957 vol 567 cc539-41
28. Mr. H. A. Price

asked the Chancellor of the Exchequer the commencing salary of a chief executive officer at September, 1939, May, 1945, October, 1951, and January, 1957; what salaries would have been necessary on the last three dates to compensate for changes in the cost of living and taxation while maintaining the same net purchasing power; and how the net purchasing power of the salaries actually given varies, taking the September, 1939, figure as 100.

The Financial Secretary to the Treasury (Mr. J. Enoch Powell)

Taking the case of a chief executive officer who is married with one child, and assuming the net purchasing power of his commencing salary in September, 1939, to be 100, the corresponding figures would be 51.2 in May, 1945; 48.5 in October, 1951, and very great embarrassment to the small but important Cornish fishing industry and that the new agreement he has made with Japan in relation to Japanese imports is causing consternation in Cornwall?

Sir D. Eccles

It is true that imports from the South West Africa territory have increased very much, but Japan has a very small quota, and my information is that none has yet arrived.

Following is the Answer:

62.5 in January, 1957. With permission I will circulate the figures of salary in the OFFICIAL REPORT.

Mr. Price

Should I be interpreting these figures correctly if I said that they reveal that between September, 1939, and October, 1951, the standard of living had fallen to below 50 per cent. and that since then it has recovered to something approaching two-thirds of the 1939 standard? Is my hon. Friend aware that these figures are typical of practically all the middle classes? Will he impress upon his right hon. Friend that we look forward to another instalment in the recovery on 9th April?

Mr. H. Wilson

In view of the untimely—or timely—demise of the Middle Class Alliance sponsored by the hon. Member, is the Financial Secretary now prepared to leave these matters to be settled by arrangement between the Treasury and the trade unions concerned?

Following is the information:

COMMENCING SALARY OF A CHIEF EXECUTIVE OFFICER, MARRIED WITH ONE CHILD
—— Actual gross income Equivalent of 1939 gross income at current rates of taxation
£ £
1939 … 900 —
May, 1945 … 960 2,185
October, 1951 … 1,100 2,886
January, 1957 … 1,635 3,180