§ 17. Sir C. Osborneasked the Chancellor of the Exchequer, in view of the fact that personal incomes for the first nine months in 1961 increased by 7 per cent. whereas output increases only by 11 per cent., what was the increase or decrease in exports; to what extent exports were held back by higher prices caused by higher incomes; if he will take further steps to publicise the dangers to exports caused by higher prices: and if he will make a statement.
§ Mr. Selwyn LloydOver the first nine months of 1961 exports rose by £99 million, or about 3½ per cent. I have no doubt that exports were to some extent held back by higher prices, but that is very difficult to quantify. A continuation of the rise in prices and costs, which is simply another aspect of the inflation of personal incomes, would be very damaging to our export prospects. I have frequently drawn attention to the importance of keeping down the cost of exports so as to allow exporters to take full advantage of the expanding markets open to them. This is indeed one of the principle objects of the Government's incomes policy.
§ Sir C. OsborneIf exports increased by only 3½ per cent. whereas personal, incomes rose by 7 per cent., is not that going to make the position of exporters a great deal more difficult? What new steps will my right hon. and learned Friend take to convince the nation that unless we export more we may have 1 million people unemployed before long?
§ Mr. LloydWhat my hon. Friend says is true, and I hope that every hon. Member will co-operate in convincing public opinion in this country of the facts as my hon. Friend has stated them.