§ 2. Mr. Stratton Millsasked the Chancellor of the Exchequer what is the purchasing power of the £ sterling compared with 16th October, 1964.
§ The Chancellor of the Exchequer (Mr. James Callaghan)On the basis of the change in the index of retail prices, the purchasing power of the £, taken as 20s. in October, 1964, was about 18s. 3d. in December, 1966, the latest date available.
§ Mr. MillsDoes not the figure cause the Chancellor of the Exchequer to hang his head in shame at that shoddy performance? Would he agree that while prices have been held back in the past eight months the flood gates of price increases will open substantially after July?
§ Mr. CallaghanThere is no doubt that the success of the Government's prices and incomes policy has had the effect of slowing down the increase in the cost of living very substantially. But although the retail price index went up by 9½ percent. in the period, total earnings went up by 11 per cent. But I see no particular value in that kind of progress, and hence the reason for the Government's present policy.
§ Mr. LiptonWould not the purchasing power of the £ sterling be immensely improved if we did not give scores of millions of £s away every year to the Government of Northern Ireland?