HC Deb 25 April 1972 vol 835 cc1251-4
5. Mr. Skinner

asked the Chancellor of the Exchequer what is the current purchasing power of the £ sterling as compared with June, 1970.

The Minister of State, Treasury (Mr. John Nott)

Taking the internal purchasing power of the £ as100p in mid-June, 1970, its value in mid-March, 1972, based on changes in the Consumer Price Index and adjusted by the General Retail Price Index, is estimated at 88½p. This does not include any cut in prices between mid-March and the present time resulting from the Budget.

Mr. Speaker

Order. Is the Minister also answering the following Questions?

No. 11 MR. CARTER: To ask the Chancellor of the Exchequer what is the value of the £ sterling now compared to 18th June, 1970.

No. 12 MR. KAUFMAN: To ask the Chancellor of the Exchequer what is the purchasing power of the £ sterling now, taking it as 100p on 18th June, 1970.

Mr. Nott

I am sorry, Mr. Speaker. I meant to say that with permission I would answer Questions Nos. 5, 11 and 12 together.

Mr. Speaker

Mr. Skinner.

Mr. Kaufman

I think the Minister has given a wrong answer. Before we get on, should he not reconsider his answer and give the correct statistic?

Mr. Skinner

What about that then? Butch Cassidy and the Sundance Kid. Can we take it that the Chancellor had these figures, whatever they may be, in the forefront of his mind when he spoke to the Conservative Political Centre last week, and does the Minister of State realise, even if the Chancellor does not, that all that the railwaymen are guilty of is an attempt to try to restore their purchasing power to what it was at June, 1970, because it has been denuded as a result of the Government's actions?

Mr. Nott

The railway claim is not a matter for me, and while there is a prospect of negotiations being resumed I do not think it would be helpful for me to comment on this point.

Mr. Carter

Does the Minister accept that Britain's wage rates last year rose at a lower rate than in any other country in Europe except France? This demonstrates the extreme moderation of contemporary wage claims when set against the enormous rate of inflation which the hon. Gentleman's answer indicates.

Mr. Nott

It is also true that real personal disposable incomes have risen at an annual rate of about 3 per cent. since the Government came to power compared to 2 per cent. during the whole period when the Labour Government where in office.

Mr. Redmond

Would my hon. Friend agree that we had considerable inflation for the period immediately following the term of office of the last Labour Government? Did not precisely the same thing happen in 1951 when they ran from office. Does not inflation follow a period of Socialist Government as sure as night follows day, and do not the Tories always get it right?

Mr. Nott

I thank my hon. Friend for that. Prices are now rising at about 5½ per cent. a year. In the three months leading up to the last General Election when the Labour Party was in office they were rising at the rate of 8 per cent., so we are making very great progress.

Mr. Kaufman

On a point of order, Mr. Speaker. I had a Question down——

Mr. Speaker

The hon. Member rose and made an intervention, and it is fully within my discretion whether I call him or not.

Mr. Kaufman rose

——

Mr. Barnett

Surely, Mr. Speaker, my hon. Friend rose to a point of order and not to ask a supplementary question.

Mr. Speaker

The hon. Member made an intervention, and if he makes an intervention it is for me to decide whether I call him again.

Mr. Kaufman

On a point of order, Mr. Speaker. I wish to draw your attention to the fact, because I thought it was important for the House since the Minister was answering a number of linked Questions—[Interruption.]—that it was not possible for hon. Members, including myself, to put valid supplementary questions when the Minister had given an inaccurate answer to a Question. Therefore, I was in no way seeking to give up my possible right to ask a supplementary question. I was trying to point out that it was not possible for hon. Members to put valid supplementary questions if the Minister was giving an inaccurate answer which did not bear any relation to previous answers to this series of Questions. I respectfully submit, therefore, that the right of an hon. Member to ask a supplementary question is being abrogated if he rises to put a point of order.

Mr. Speaker

Order. The House must try to help the Chair in this instance.

Mr. William Hamilton

The Chair must try to help us.

Mr. Speaker

I did not hear the hon. Member say anything about a point of order when he originally rose. [Hon. Members: "Yes, he did."] I did not hear him say so, but it is for me to decide. I am under constant pressure to get on with Question Time and it was getting very much like a debate. I therefore exercised my discretion. I now call Mr. David Mitchell to ask Question No. 6.

Mr. David Mitchell rose

——

Mr. Kaufman

On a point of order. I am sorry, Mr. Speaker, but I very clearly said—and if you did not hear it I regret it—that I was rising to a point of order. All my hon. Friends will bear me out. [Hon. Members: "Hear, hear."] I shall seek to raise this whole matter on a point of order at the end of Questions.

Mr. Speaker

I am grateful for that. Mr. David Mitchell.