§ 30. Mr. Biffenasked the First Secretary of State and Secretary of State for Economic Affairs what percentage annual increase in the gross national product is consistent with an incomes norm of 3 to 3½ per cent.; and by what percentages the gross national product increased during 1965 and is expected to increase during 1966.
§ Mr. George BrownI would refer the hon. Member to paragraphs 3, 4 and 11 of the White Paper, on Prices and Incomes Policy for an answer to the first part of his Question. The latest available figures for the gross domestic product at constant prices relate to the first three-quarters of 1965 and show an increase of 2.6 per cent. over the first three-quarters of 1964. It would not be appropriate for me to forecast the expected increase during 1966.
§ Mr. BiffenWould not the right hon. Gentleman agree that an increase in the gross domestic product at the rate of 2.6 per cent. a year suggests that the 603 corresponding prices norm should be 2 to 2½ per cent.? Unless the right hon. Gentleman is able to suggest that the gross domestic product will grow more rapidly this year, will he take steps to revise the prices norm?
§ Mr. BrownI am against doing it on these short-term bases, although we have periodic reviews of trends through the National Economic Development Council. But we must view this matter over a longer time-scale. We made it clear when the National Plan was produced that inevitably, because of our inheritance, there would be a slowing of the increase in output in the first period of the five-year plan. That does not mean that we do not expect to achieve it by the end.