HC Deb 06 February 1962 vol 653 cc212-3
15. Mr. Ridley

asked the Chancellor of the Exchequer what was the percentage increase in earnings during 1961; and what was the corresponding increase in productivity.

Mr. Selwyn Lloyd

In the first nine months of 1961, average earnings per head were 7 per cent. higher than during the corresponding period of 1960. Between the same two periods output per head rose by 1¼ per cent.

Mr. Ridley

In view of those figures, and in view of my right hon. and learned Friend's estimate that we can afford an increase in earnings this year of only 2 to 2½ per cent., will he refer these figures to Lord Robens and to Dr. Beeching?

Mr. Lloyd

I think that everyone is aware of these figures. Of course it is extremely important that we should try to put up output by increasing efficiency and by the use of existing capacity. At the same time, I think that these figures show a necessity for restraint over personal incomes.

Mr. Callaghan

Why does the Chancellor of the Exchequer talk about putting up output when it has been his deliberate policy since last July to damp it down? How can he expect wage-earners to be satisfied with statements of that sort when they know that the Government are keeping down output and propose to have an increase in output this year of only 2½ per cent.? Is it not time that the Government made way for people who are ready to stimulate production in this country?

Mr. Lloyd

The Government have sought to reduce neither fixed investments nor exports. If under the hon. Gentleman's policies one simply increases demand at home which will divert attention from exporting and attract further imports, the situation will become very much worse.

Sir C. Osborne

Since exports are the real key to our economic situation, can my right hon. and learned Friend tell us the increase in exports in the same period?

Mr. Lloyd

Not without notice.

Mr. Callaghan

If the right hon. and learned Gentleman cannot give us the figures, why does he tell us that it is so important to do what he said earlier? Has not he read the Treasury bulletins which show that the output of exports has gone down since he introduced his measures last year. Is not this a thoroughly unsatisfactory economic policy of which the right hon. and learned Gentleman should get rid as soon as he can?

Mr. Lloyd

The Question of my hon. Friend referred to the first nine months of last year. I have not the precise figure, but I think that what the hon. Gentleman says is wrong.