§ 38. Mr. Bruce-Gardyneasked the President of the Board of Trade if he will publish a White Paper to show the Government's calculation of the relationship between earnings inflation and United Kingdom export performance.
§ Mr. JayOur export performance is determined by many factors, including changes in wage costs in this and other countries. An article on "International Comparisons of Costs and Prices" will appear in the May issue of "Economic Trends".
§ Mr. Bruce-GardyneHas the right hon. Gentleman noted from recent replies to me and other hon. Members that the countries with the highest rate of earnings inflation in recent years, such as Italy and Japan, have had the best record of export performance? Does not this cast doubt on the whole basis of the Government's incomes policy?
§ Mr. JayI am not sure whether by earnings inflation the hon. Gentleman means inflation of profits or inflation of wages and salaries. Whichever he means, this is only one of the factors affecting comparative performance in exports, though I agree that in either case it is an important one.