HC Deb 28 June 1973 vol 858 cc1716-8
8. Mr. Ralph Howell

asked the Minister of Agriculture, Fisheries and Food if, to assist in his monitoring of food prices, he will compare the overall percentage increase in the United Kingdom's national spending on food since 1970 with the United Kingdom's increased expenditure under the heading personal income-current grants from public authorities and also with increased personal savings during the corresponding period.

Mrs. Fenner

Between 1970 and 1972, expenditure on food by consumers in the United Kingdom increased by 16.4 per cent., whereas personal income from current grants from public authorities rose by 35.4 per cent. and estimated personal savings increased by 38.6 per cent.

Mr. Howell

Does not my hon. Friend's reply prove the falseness of the claim made by the Opposition and that their crocodile tears are just so much eyewash?

Mrs. Fenner

The Family Expenditure Survey, published annually, shows a continuing trend towards a higher standard of living. Between 1970 and 1972 expenditure on food increased by 16.4 per cent., whereas consumer spending on radio and electrical goods rose by 45½ per cent., on cars and motor cycles by 81 per cent. as well as there being an increase in savings as my hon. Friend pointed out, which is an indication of money left after the priorities have been met in a family.

Mr. Marks

Is not it the Government's view that until last October the standard of living was going up too quickly and, as a result, the policy since then has been deliberately to make the rise in prices more than the rise in wages? Has not this been deliberate, and successful?

Mrs. Fenner

The cost inflation since 1970 was at too high a rate. That is why the counter-inflation policy was brought into being as well as being in order to ensure a better deal for the most vulnerable people in the community.

Mr. Leadbitter

Surely these figures are misleading. The hon. Lady must bear in mind that the Question talks about national spending on food. According to her reply it increased by some 16 per cent. However the other day in answer to a Question I was told that the price of food went up by 36 per cent. in the period that we are considering. The hon. Lady is also ignor- ing prices in terms of rents, rates, fares and the rest. Therefore, will she be honest with the House and say that the margins of saving and spending are not true in the context that she has put them to the House?

Mrs. Fenner

The statistics which are quoted are those produced by the Family Expenditure Survey, an annual publication which was used heavily by the Opposition when they were in Government. I should have thought that it was a reputable statistical source.

Mr. David Clark

Has the hon. Lady seen the latest edition of the Department of Employment Gazette which shows that until the end of 1972 incomes after tax were up by only 10½56 per cent., during which time food prices went up more that 20 per cent.?

Mrs. Fenner

Yes, because food prices represent a portion of prices as a whole. It is the retail price index as a whole at which hon. Members should be looking. I realise that for the housewife expenditure on food is a very high proportion of total expenditure, and I trust that the increase in average earnings last year went in part to the housewives, but I doubt it.