HC Deb 24 January 1963 vol 670 cc261-3
15. Sir C. Osborne

asked the Chancellor of the Exchequer by how much he estimates that total demand within the economy will have risen by midsummer, 1963, and by the end of 1963, respectively; what will be the effect on unemployment; and if he will make a statement.

Mr. Boyd-Carpenter

Total demand within the economy will undoubtedly rise during 1963, and together with the other measures being taken by the Government, help employment. It is not, however, appropriate or indeed usual practice to speculate about precise figures in reply to a Parliamentary Question.

Sir C. Osborne

I find that uncertain Answer very unsatisfactory. Last year the Chancellor estimated that the demand would increase and it fell. Why should we trust the Treasury again? Did my right hon. Friend see yesterday's statement by the chairman of Richard Thomas & Baldwins (that last year's business for the steel industry was the worst on record? Is that the way to help the whole economy?

Mr. Boyd-Carpenter

The statement by the chairman of that company, who made it no doubt on his own responsibility, does not purport to deal with the position of the economy as a whole. If my hon. Friend will study my Answer and reflect at the same time on the very substantial measures the Chancellor has taken to stimulate demand, I think he will be encouraged.

Mr. Callaghan

While the country will be shocked by the announcement today of a figure of more than 814,000 unemployed, making allowances for the weather, does it not still follow that there is a substantial increase in unemployment far above the level we have a right to expect? If it is the case, as I believe it is, that pumping Government money into the economy will substantially reduce unemployment over the next few months—which I understand is his policy—will the Chief Secretary explain to the country why the Government extracted so much extra money at the time of the pay pause and repeated the offence in the last Budget? Does he realise that the country will hold him to account for the failure for the second time in a few years correctly to judge what is happening to the economy and to allow a state of unemployment to arise which was wholly unnecessary?

Mr. Boyd-Carpenter

The first part of that supplementary question, as the hon. Gentleman knows, has absolutely nothing to do with the Question on the Order Paper. [HON. MEMBERS:"Oh."] He knows that perfectly well. On the second part, the question of the measures taken at any particular time obviously must relate to the circumstances of the time. I gather that the hon. Member does not dispute that the measures we are now taking are appropriate to the situation.

Mr. Callaghan

The explanation which is required on this Question, and which I am pressing the Chief Secretary for, is why did he allow the situation to get into its present position in which there are so many unemployed when he had ample warning months ago of the situation which was likely to arise?

Mr. Boyd-Carpenter

The hon. Member may seek to make that point and to make it in debate, but he knows perfectly well that it has absolutely nothing to do with this Question.