§ 26. Sir C. Osborneasked the Chancellor of the Exchequer, in view of the fact that the Economic Survey, 1961, Command Paper No. 1334, page 27, states that direct labour and services together account for 62 per cent. of total manufacturing costs, what are the main items for the other 38 per cent. of the costs.
§ Mr. BarberThe figure of 38 per cent. refers to the cost of materials and fuel.
§ Sir C. OsborneSince the Economic Survey said that the cost of materials fell last year and the cost of fuel is largely wages, can my right hon Friend say how long it will be before we have mass unemployment in this country if we continue to pay ourselves more wages for doing less work?
§ Mr. BarberWith respect, I think that my hon. Friend has misunderstood the purport of the Survey. If he will look at the paragraph which precedes the one to which he referred, he will see that wages and salaries account for 46 per cent. of the whole of total costs in manufacturing industry; materials and fuel account for 38 per cent., and miscellaneous services, such as insurance and transport, for the remaining 16 per cent. In other words, it is direct labour and services which are referred to in the 62 per cent. of the total cost.
§ Sir C. OsborneSince the Economic Survey says that the cost of materials fell last year and therefore that section of the 38 per cent. was smaller, and fuel is largely wages, is not it clear that it is the wages factor in our cost of production which makes it more difficult to sell our goods abroad?
§ Mr. BarberThere can be no doubt that wages and salaries form by far the 786 most important section of costs in manufacturing industry. Therefore, obviously this has a greater effect on costs and prices than any other item.