HC Deb 20 November 1958 vol 595 cc1296-7
8. Mr. Osborne

asked the Chancellor of the Exchequer if he will set out in column form the percentage of annual increases in industrial wages and industrial productivity, respectively, for every year since 1945.

Mr. Erroll

As the Answer contains a number of figures I will, with permission, circulate it in the OFFICIAL REPORT.

Mr. Osborne

I am much obliged for that Answer, but will my hon. Friend tell me this? Since wages increased last year by 4 per cent. and production fell by 4 per cent., the cost of living being kept steady only because our import prices fell so much, will he ask his right hon. Friend to warn the country that, if higher wages are paid for less production, prices will have to go up?

Mr. Erroll

My right hon. Friend has frequently drawn attention to the inflationary consequences of increases in personal incomes, including wages and salaries.

Mr. H. Wilson

While we all welcome the perception of the hon. Member for Louth (Mr. Osborne) on, at any rate, one point, may I ask the Economic Secretary to say how much the failure to increase productivity—indeed, there has been a decrease—is due to the Government's deliberate policy of holding production down?

Mr. Erroll

I do not think that that supplementary question calls for any answer.

Mr. Osborne

Will my hon. Friend tell the House how far the Government's actions have resulted in any reduction of production in the coal industry, and why there are 15 million tons of coal which cannot be sold because the price is too high?

Mr. H. Wilson

But will the Economic Secretary answer a perfectly fair question? Is not it a fact that productivity cannot increase if production is being held down, and are not the Government primarily to blame for that?

Mr. Erroll

I do not accept the arguments advanced by the right hon. Gentleman.

Following is the Answer:
Weekly wage rates (i) Average weekly earnings (ii) Industrial output per man
Percentage increase over previous year Percentage increase over previous year Percentage increase over previous year
1947 4 7 -1½
1948 5 9½ 5½
1949 2½ 4 4½
1950 2 4½ 5
1951 8½ 10 1
1952 8 8 -2
1953 4½ 6 5
1954 4½ 6½ 5
1955 6½ 9 3
1956 8 8 -1
1957 5 4½ 1½

Notes

  1. (i) The increases are derived from the movements in the index of wage rates which covers weekly wage earners in all industries and services. There is no separate measure of changes in industrial wages.
  2. (ii) This series is derived from the half-yearly returns published by the Ministry of Labour and National Service and are the average weekly earnings in the last pay week of April and October of each year. Wage earners covered by these returns are manual workers employed in manufacturing industries generally, and in a number of the principal non-manufacturing industries, in the United Kingdom.