§ 20. Mr. Skinnerasked the Chancellor of the Exchequer what, on the basis of the General Index of Retail Prices, is the purchasing power of the £ sterling now, taking it as 100p on 18th June 1970.
§ 29. Mr. Kaufmanasked the Chancellor of the Exchequer what, on the basis of the General Index of Retail Prices, is the purchasing power of the £ sterling now, taking it as 100p on 18th June 1970.
§ 30. Mr. Carterasked the Chancellor of the Exchequer what has been the monthly average fall in the value of the £ sterling based on the General Index of Retail Prices since June 1970.
§ Mr. Nott81½p, or a fall of 0.6p per month. This compares with a rise in personal disposable income in the third quarter of 1972 of 1.0p per month, which gives a rise in the standard of living of the British people at almost double the rate of the period 1964–1970.
§ Mr. SkinnerIs the Minister aware that the counter-inflation measures, according to these figures and others, 676 have proved that we have a continually sinking pound, that prices are now rising faster during the freeze than before it, and that the standard of living of ordinary working people is deteriorating as a result? The last official figures show that total earnings were well below those of a month before. The Minister does not seem to be able to give any guarantee about the floating of the pound abroad, but why does he not show a little independence and fix the pound at home?
§ Mr. NottAs I said in my original answer, the fact of the matter is that in the 12 months to January retail prices rose by about 7¾ per cent., whereas average earnings increased twice as fast as that. On the January figures, the retail price index for all items except food was practically stationary.
§ Mr. KaufmanIs the hon. Gentleman aware that his answer provides further proof of the scandalous failure and fraud of what is foisted upon this country as an alleged prices freeze, before rate increases and before VAT? How can the hon. Gentleman expect gas workers, hospital ancillary workers and civil servants to accept wage curbs when prices are soaring?
§ Mr. NottThere is little purpose in my commenting on the hospital workers. This is not a subject for me, and I do not see that it will help by discussing it across the Floor of the House.
As I said in answer to the previous question, all the evidence is that the retail price index for all items except food was practically stationary in January. The standstill is having a very good effect.
§ Mr. SpeakerOrder. It is now 3.15 p.m. Further supplementary questions should be very brief.
§ Mr. CarterIs it not obvious from the answer that wage claims at present not only have to be retrospective but also have to cater for the continuing decline in the value of the pound? On that basis is not the gas workers' claim fully justified?
§ Mr. NottI have already told the House that over the recent period the standard of living of the British people has been rising at double the rate, in real terms, that it was rising during the period 677 of office of the hon. Gentleman's party. I do not see why he should complain about that.