Take-home Pay

HC Deb 06 November 1986 vol 103 c1068

2. Dr. Michael Clark

asked the Chancellor of the Exchequer if he will indicate the increase in take-home pay since 1979 of a married man with two children on the average industrial wage; and how it compares with the national increase in productivity over the same period.

Mr. Brooke

The real take-home pay of a married man who has two children and is on average earnings is expected to increase by 17 per cent. between 1978–79 and 1986–87. Since this Government took office productivity has increased by 13.4 per cent.

Dr. Clark

Does my hon. Friend agree that those figures show that, during the Conservative Government's period in office, there has been a substantial increase in the standard of living of people in this country? Does he also agree that unless we modify our pay demands, or increase our productivity, our international competitiveness is at risk?

Mr. Brooke

I agree with the first part my hon. Friend's question. As to the second part, what is already an outstandingly healthy economy would he healthier still if the rise in real earnings were matched by a rise in productivity, impressive though the latter is.

Mr. Terry Fields

Is the hon. Gentleman aware that in parts of Liverpool 80 per cent. of children attending school receive free school meals, which is indicative of low pay in that area? On average, 50 per cent. of school children in my constituency of Broadgreen receive free school meals. Is it not a ludicrous and idiotic suggestion by the Chancellor of the Exchequer that people in places such as Liverpool should take more modest settlements in their income? Is that not an absolute recipe for disaster for an already impoverished region? When will the Government do something positive about providing real jobs and a decent standard of living for people in Liverpool?

Mr. Brooke

Under present circumstances, if we could achieve a 1 per cent. reduction in the rate of growth of real pay, that would, over time, create 110,000 to 220,000 new jobs. Those figures can be increased pari passu. That would make a powerful contribution to our unemployment problems.