§ 29. Mr. Frank Allaunasked the Chancellor of the Exchequer to what extent it is his intention to maintain a larger margin of unused capacity and the permanent pool of unemployed entailed.
§ Mr. CallaghanAs has been made clear in a reply on an earlier occasion, the Government do not recognise a permanent pool of unemployment as any part of our policy. As to the earlier part of the Question, I would refer my hon. Friend to my Budget statement.—[Vol. 744, c. 973–1010.]
§ Mr. AllaunI welcome that, but is there not sufficient unused capacity today to fulfil our proposed and planned export 1126 increases without the cut in home consumption which will result from the three deflationary measures of Saturday? When will those be withdrawn?
§ Mr. CallaghanWe shall be debating these matters later today. The answer probably is that there is sufficient capacity at the moment, but, as home demand is certainly going to expand at a quite rapid rate during the next 12 months, in 12 months' time there would not be that capacity available, plus the export-led boom which we desire to see.
Mr. Gresham CookeDoes not the Chancellor agree that the vicious four-pronged attack on exporting companies which he made in his devaluation statement yesterday will lead to a larger pool of unemployed this winter?
§ Mr. CallaghanNo, Sir, I would not agree with that. But we are to debate these matters for two whole days.
§ Mr. HigginsAs the Chancellor has stated what overall level of unemployment he regards as acceptable and has stressed the need for regional policies, will he put in the Library a list of figures giving the levels which he regards as acceptable in each region?
§ Mr. CallaghanNo, Sir; it would be quite useless to tackle the problem in that way.