§ 11. Mr. J. H. Osbornasked the President of the Board of Trade what was the value of the physical increase in the stocks of the distributive trades at 1963 prices in 1964; and what was the comparable figure for 1969.
§ 16. Mr. Hall-Davisasked the President of the Board of Trade what percentage of the gross domestic product was represented by stock accumulation of the distributive trades in 1964; and what was the comparable figure for 1969.
§ Mr. MasonThe increase in 1964 was £141 million; in the first three quarters of 1969 there was a reduction of £24 million, seasonally adjusted. Information for the fourth quarter of 1969 is not yet available. The increase in 1964 represented 0.5 per cent. of gross domestic product; in the first three quarters of 1969 the figure was minus 0.1 per cent.
§ Mr. OsbornThe answer is a matter of major concern. Since this trend has been entirely due to the credit squeeze, is there not a danger, if stocks are reduced to too low a level, that retailers will not have enough stocks in the shops and elsewhere to attract customers? Is the right hon. Gentleman aware that this is a vicious circle which has reached a dangerous stage?
§ Mr. MasonI rebut absolutely and completely the hon. Gentleman's final comment because it is quite untrue. Stocks held by the distributive trades are very high by past standards, especially 1181 in relation to the present economic activity of the country.
§ Mr. Hall-DavisWhat would the right hon. Gentleman consider to be the import content stock accumulation in the distributive trades?
§ Sir K. JosephIs it not a fact that when hon. Gentlemen opposite took office in 1964 they found that we had left the granaries full, whereas when they leave office shortly the granaries will not be full?
§ Mr. MasonThe right hon. Gentleman is wrong on both counts. We were nearly bankrupt when we came to power, but now we are economically healthy. Stocks in 1964 do not bear comparison with stocks in 1969. The economic activity of the nation is such that the stocks of the distributive trades are very high. The stocks of the manufacturing trades are slightly less.
§ 33. Mr. Blakerasked the President of the Board of Trade why, in each of the first three quarters of 1969, the value of stocks held by the distributive trades fell.
§ Mr. MasonIn fact, the value increased in each quarter. Over the three quarters the volume is estimated to have been a little lower, by some £25 million at 1963 prices. But this was very small in relation to the total stocks held—over £2,500 million at the same prices. Many factors influence stockholding by these trades, but by past standards the level in the first quarter was high in relation to activity.
§ Mr. Arthur LewisOn a point of order. Mr. Speaker. Is it not a fact that according to Standing Orders Questions must be based on fact? If the hon. Gentleman puts down something that is not factually true, is not the Question out of order?
§ Mr. SpeakerOrder. The hon. Gentleman who puts down a Question is responsible for what he believes to be facts.
§ Mr. BlakerIs the President of the Board of Trade aware that in the answer he has just given he has contradicted an answer he gave earlier, in which he pointed out that in the first three quarters 1182 of 1969 at constant prices—and that was the basis of my Question, as I informed his Department this morning—stock accumulation was a minus quantity? Is the right hon. Gentleman saying, judging from his earlier answer, that he is satisfied with this situation?
§ Mr. MasonI am aware that the hon. Gentleman rang my office this morning. I thought that the reply was absolutely right. I gather that he phoned to make sure that my answer was based on 1963 prices, and it was based on them. His Question speaks of the value of stocks, and asks why they fell. I replied by telling him that the value increased in each quarter.