§ 13. Mr. Robert B. JonesTo ask the Chancellor of the Exchequer whether he will estimate the annual cost to British industry of (a) a rise of 1 per cent. in interest rates and (b) a rise of 1 per cent. in payroll costs.
§ Mr. LilleyA 1 per cent. rise in payroll costs would cost companies £1¾ billion, roughly three times as much as a 1 per cent. rise in interest rates.
§ Mr. JonesI thank my hon. Friend for that interesting answer. Since rising interest rates are a phenomenon of most industrialised countries, why does the CBI bleat about them? Higher wage rates are not a phenomenon of many industrialised countries, but the CBI leaves them entirely alone instead of concentrating on trying to keep wage costs under control.
§ Mr. LilleyMy hon. Friend makes a very important point. Interest rates in Britain have gone up by the same amount as interest rates in Germany over the past 12 833 months. Obviously, it is in the power of industrialists to keep their total costs down if they keep firm control of their payroll costs.