§ 6. Mr. Jayasked the Chancellor of the Exchequer the main economic activities. other than industrial production, which contributed to a rising real personal disposable income per head between 1954 and 1958.
§ Mr. ErrollThe trend of real personal disposable income per head depends on a number of factors besides the level of industrial production. These include in the first place production outside industry, that is, in agriculture, transport, distribution, public administration and other service industries; in the second place, the movement of the terms of trade; and in the third place, the proportionate share of the real national income accruing as disposable income to persons.
§ Mr. JayIs the hon. Gentleman aware that he has not even tried to answer my Question, which was not "Which are the other forms of production?", but "Which were the ones which have risen since 1954?" Will he not come clean now and admit that practically the whole of this alleged rise in real incomes per head since 1954 has been due to the fall in import prices?
§ Mr. ErrollNo, Sir; certainly not. I have tried to give as full and as helpful an answer as possible to the Question, but this is a rather complicated subject. With regard to the various factors which have made a difference, I would mention the fall in the cost of defence.
§ Mr. JayIs not the Economic Secretary aware that ever statistician knows that the real cause of any rise in real personal disposable incomes has been the fall in import prices? If he really contests that, would he mention one other form of economic activity which has significantly risen in these years?
§ Mr. ErrollI accept that the fall in import prices is one of the factors, but other factors have been at work.
§ Viscount HinchingbrookeIs not the main economic activity the organisation of a free society under this Government?
§ Mr. ErrollNot without notice.
§ 7. Mr. Jayasked the Chancellor of the Exchequer the rise in real personal dis- 1402 posable income per head between 1955 and the lastest available period.
§ Mr. ErrollIt is estimated that real personal disposable income per head increased by 6.3 per cent. between 1955 and 1958.
§ Mr. JayDoes not that show that much the greater part of the rise which the Chancellor has claimed—2.7 per cent. a year—occurred in the first year, between 1954 and 1955, and that since then progress has been extremely slow, even on that definition?
§ Mr. ErrollNo, Sir. The figures which I have just given are not inconsistent with my right hon. Friend's Answer earlier. What I am beginning to feel is that some suspicion is growing that the right hon. Gentleman does not know what real personal disposable income is.
§ Mr. GowerIs there not a good deal of evidence that we are now prepared as a nation to take another bold step forward in this direction?
§ Mr. ErrollI am glad to confirm that.
§ Mr. Gordon WalkerWill the hon. Gentleman tell us what real personal disposable income is?
§ Mr. ErrollI should be glad to forward the right hon. Gentleman the definition and at the same time refer him to the Answer given by my right hon. Friend a few weeks ago.