§ 21. Sir A. Meyerasked the Chancellor of the Exchequer what is his estimate of the additional purchasing power available in Wales as a result of his Budget measures.
§ Mr. Patrick JenkinWales will gain a full share of the additional purchasing power injected into the economy in 1972–73 as a result of the £1,200 million tax cuts in the Budget. Most of the 900,000 Welsh wage and salary earners will find their income increased by £1 per week as a result of the increase in the personal allowances; and the cuts in purchase tax will further raise real purchasing power by reducing prices.
§ Sir A. MeyerWould my hon. Friend agree that this is a factor which, coupled with the extensive pool of unused capacity in Wales, means that there is now a 1267 unique opportunity for industrialists to expand profitably?
§ Mr. JenkinI agree entirely with what my hon. Friend says.
§ Mr. EllisHow does the hon. Gentleman reconcile the target growth rate set by the Chancellor in the Budget when he made available extra purchasing power with the 6 per cent. growth rate spoken of by the Welsh Council in its report some six weeks ago as being imperative if unemployment in Wales was to be reduced to a satisfactory figure within a reasonable period of time?
§ Mr. JenkinI am aware of the view put forward by the Welsh Council which is still being studied by members of the Government.