§ 23. Mr. Edwin Wainwrightasked the Chancellor of the Exchequer if he will publish in the Official Report the percentages of wages and salaries as part of the national income for the years 1940, 1950, 1960, 1970, 1971, 1972, 1973 and 1974, respectively.
§ Mr. WainwrightWill my right hon. Friend say whether those figures will show that the ratio of wages and salaries to the gross national product varies very little over the years in question? Will he give consideration to the question of bringing together more than ever the directors of companies and the trade unions to ensure not only that we shall have greater investment in industry so that we shall have greater production, but that there will be a greater understanding between employees and employers, to ensure greater harmony in industry throughout the country?
§ Mr. DellWhen he studies these figures my hon. Friend will see that there has been some variation of wages and salaries, excluding Armed Forces' pay, as a percentage of national income. For example, in 1950 it was 64.1 per cent. and in 1974 it was 70.7 per cent., so there are variations. I entirely agree with my hon. Friend that better understanding within industry would contribute to greater investment.
§ Mr. HefferDoes my right hon. Friend agree that although there have been variations the figures show that they have not been as great as has been suggested? Therefore, it is not true to say, as is being said the whole time by all types of economists, by the Government Front Bench, by the Opposition Front Bench, and by Uncle Tom Cobbleigh and all, that inflation is due to the rapid increase in wages. Is it not clear that those figures prove the very opposite?
§ Mr. DellNo, I do not think that is clear. My right hon. Friends have not said that wages are the sole cause of inflation. They have from time to time indicated a number of causes of inflation. What has been said is that recently wages have been the prime cause of inflation in this country. Nothing in these figures disproves that assertion.
§ Following are the figures:
| WAGES AND SALARIES AS A PERCENTAGE OF NATIONAL INCOME | |
| 1950 | 64.1 |
| 1960 | 65.6 |
| 1970 | 68.3 |
| 1971 | 68.1 |
| 1972 | 67.6 |
| 1973 | 67.0 |
| 1974 | 70.7 |
| *Excluding Forces' pay | |
| Figures for the later years are consistent with those published in the July 1975 issue of Economic Trends. Figures for 1940 are not available. |