HC Deb 15 November 1976 vol 919 cc904-6
3. Mr. Montgomery

asked the Secretary of State for Prices and Consumer Protection what was the weekly amount spent on food by the pensioner in February 1974; and what it is at the present time.

The Under-Secretary of State for Prices and Consumer Protection (Mr. Robert Maclennan)

According to the National Food Survey, the food expenditure per person in pensioner households averaged £3.03 per week in the first quarter of 1974 and £4.63 in the second quarter of 1976, which is the latest period for which information is available. This represents an increase in expenditure of 53 per cent., but it should be borne in mind that over this period pensions increased by 70 per cent. Pensions will rise by a further 15 per cent. today.

Mr. Montgomery

Is the Minister aware that, according to figures taken from the Family Expenditure Survey, the total expenditure for retired households has increased by £11.51 a week since February 1974? Is it not a terrible indictment of the Government that the rate of inflation has increased so much that is has eroded the increase in pensions since that date? Is he aware that his right hon. Friend the Secretary of State said in a speech in Gloucester on 16th October that Socialism is an expensive business? Does he not agree that it is particularly expensive for retired people and low-income families, and that it is about time we had less Socialism?

Mr. Maclennan

Is is unfortunate that the hon. Gentleman seeks to peddle rubbish in the House. The figures that I gave relating to expenditure on food show that the resources of pensioners, far from being eroded, have been more than maintained. [HON. MEMBERS: "Tell that to the pensioners."] Let hon. Members on the Opposition Benches tell it to the pensioners, instead of peddling the nonsense that they perpetrate here. It is clear from the National Expenditure Survey that the resources of pensioners have increased faster than the increase in the cost of living. The hon. Member for Altrincham and Sale (Mr. Montgomery) referred to expenditure on non-food items, but the figures also bear out my point in that area.

Mr. Donald Stewart

As it was part of the implied agreement in the alleged social contract that food prices would be kept to a reasonable level, and as this part of the agreement has been broken, what prospects does the hon. Gentleman see for the continuance of the social contract?

Mr. Maclennan

I am confident that the social contract will be maintained by the Government's pursuing the policies on which they embarked, with the full support of the working people, and by the people's understanding of what has led to price increases. We have a programme of food subsidies totalling £408 million in the current financial year, which has made a substantial contribution to restraining the level of price increases for the most sensitive items in the price index.

Mr. Madden

Will my lion. Friend confirm that on this issue, as on so many others, the Opposition are two-faced hypocrites?

Mr. Speaker

Order. I have said before that arguments may be hypocritical, but that we never call anyone in this House a hypocrite.

Mr. Madden

Will my hon. Friend confirm that the Opposition, while pretending to be concerned about pensioners, are, by clamouring for the removal of food subsidies, doing, at a stroke, the worst conceivable damage to pensioners?

Mr. Maclennan

I regret that the Opposition never lose an opportunity of shedding crocodile tears in the House.

Mr. Norman Lamont

Is the hon. Gentleman aware that the figures quoted by my hon. Friend the Member for Altrincham and Sale (Mr. Montgomery) are an appallingly vivid illustration of the dramatic fall in the value of money under this Government? Will he confirm that the amount spent on food by the average family has increased by almost £6 a week since February 1974, and is it not clear that the Government's policy of subsidies and trying to insulate the movement of food prices from the movement of other prices has been as pointless as it has been self-defeating?

Mr. Maclennan

I hope it is clear to the hon. Gentleman that the Index of Retail Prices has increased by 61 per cent. since February 1974 while retirement pensions have increased by 96 per cent. during the same period.

Mr. Montgomery

On a point of order, Mr. Speaker. In view of the disgraceful reply that I have received, I give notice that I shall raise the matter on the Adjournment.

Mr. Speaker

There is a set formula for this procedure. It begins "In view of the unsatisfactory nature of the reply".

Mr. Montgomery

In view of the unsatisfactory nature of the reply to my Question, I beg to give notice that I shall seek to raise the matter on the Adjournment at the earliest possible opportunity.