HC Deb 03 July 1958 vol 590 cc1557-9
5. Dame Irene Ward

asked the Chancellor of the Exchequer if he will state in percentage form the cost of inflation since 1952 to which increased wages and salaries have contributed; and what have been the comparable increases to pensioners, widows, and the disabled.

Mr. Simon

Between 1952 and 1957 the total of wages and salaries paid increased by 43 per cent. while the total amount paid in pensions, widows' benefits and disablement benefits increased by 40 per cent. It is estimated that this increase in wages and salaries raised labour costs per unit of output by about one-fifth and accounted for about seven-tenths of the total increase in prices over the period.

Dame Irene Ward

Will my hon. and learned Friend answer the Question which I asked him previously: while conquering inflation is of great importance to the nation as a whole, why are some people able to buy their way out of inflation while others, living on small fixed incomes, do not have the same advantage? Can he try to balance all this to see that there is a "fair do" all round?

Mr. Simon

My hon. Friend asked me that question last week and I answered to the best of my ability—

Dame Irene Ward

Which was not very good.

Mr. Simon

—and I am afraid that my ability has not further advanced in the space of a week.

Mr. Jay

What proportion of this rise in wages and salaries is due to previous rises in the cost of living?

Mr. Simon

I do not think that that is a very profitable question to ask or that any answer to it would be very enlightening. It is like the old question of which came first, the hen or the egg.

Mr. Jay

If the Financial Secretary cannot answer that question, what meaning is there in the answer he gave to the previous question?

Mr. H. Wilson

Since the hon. and learned Member also produced an entirely meaningless remark about the effect of output on the increasing cost per unit, will he say by how much less these costs per unit would have risen had the Government not held down the level of production in this country?

Mr. Simon

That, again, is a purely hypothetical question. The fact remains that during the years in question production increased enormously.

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