§ 2.55 p.m.
§ BARONESS PLUMMERMy Lords, I beg leave to ask the second Question which stands in my name on the Order Paper.
[The Question was as follows:
To ask Her Majesty's Government what is the percentage rise in basic food prices since June 18, 1970.]
EARL ST. ALDWYNMy Lords, between June 16, 1970, and April 20, 1971, the latest date for which information is available, the Food Index rose by 8.5 per cent.
§ BARONESS PLUMMERMy Lords, while thanking the noble Earl for that Answer, can he say what steps Her Majesty's Government are taking to reduce this appalling figure?
EARL ST. ALDWYNMy Lords, we see as the root problem here as the inflationary wage claims that have been made, coupled with a considerable rise in world prices of certain commodities. We are satisfied that in the long run—although I appreciate that it is the long run, and I am not pretending that there will not probably be further increases in the immediate future—our system of dealing with the inflationary problem of this country will settle food problems along with others.
§ BARONESS WOOTTON OF ABINGERMy Lords, can the noble Earl indicate a little more precisely what inflationary wage claims affect the prices of food? Are they the claims of the agricultural workers, the distributive workers, or of whom?
EARL ST. ALDWYNMy Lords, the problem covers a considerable field, which embraces all the distributive trades and the transport industry; and a large number of other sections of the country are involved either directly or indirectly with food supply.
§ LORD SHINWELLMy Lords, do I understand that everybody is to blame for the increase in food prices: the international situation, world prices, inflation and the rest—everybody, that is, except the Government?
EARL ST. ALDWYNMy Lords, I would have thought that a good deal of this problem stemmed from the activities of the last Administration.
§ LORD WELLS-PESTELLMy Lords, may I ask the noble Earl whether he can recall a period in recent years when there has been such an astronomical rise in the cost of living in so short a period?
§ LORD NUGENT OF GUILDFORDMy Lords.. is my noble friend aware that while he and his noble friends in Government are certainly to be congratulated on the excellence of their administration, they can hardly be expected to bring under control the inflationary wave that they inherited on June 18? And is he aware that for some months afterwards the price increases and cost increases which they had to deal with were the inheritance left by their predecessors?
§ LORD LEATHERLANDMy Lords, may I follow up those observations by asking whether Mr. Heath, who was fully aware of all the potentially inflationary circumstances, said during that month of June that he would halt these rising prices "at a stroke "?
Lone SHACKLETONMy Lords, does the noble Earl recall that in reply to an earlier Question he said that the likely price rise was in accordance with the Conservative Party document? May I ask him whether this price rise is also in accordance with the Conservative document, and in particular that the statement related to reduction " at a stroke ". which the noble Earl must have heard if he was in England during the Election campaign? Is what has happened now in accordance with the Government's promises?
EARL ST. ALDWYNMy Lords, I am not quite sure to what document the noble Lord is referring. I do not think 766 this arises out of my reference to the document, The Farming Future. Perhaps the noble Lord can enlighten me.
§ LORD SLATERMy Lords, is the noble Earl aware that while the price index that he quoted to the House, in regard to the price increases which have taken place over this particular period, will not be accepted by the general public as being authentic, we accept the statement made by the noble Earl in reply to this Question? One only has to travel around—
§ LORD SLATERAll right, my Lords, I will ask a question—noble Lords need not be worried. Is the noble Earl aware that he need only go with his good lady into one food store to find that, as against the figures he has already quoted, prices have gone up tremendously within the last month.
EARL ST. ALDWYNMy Lords, when I go shopping with my " good lady " I know that it involves going around innumerable shops in order to get the best bargain possible. By this means we succeed in keeping the housekeeping figures down to a reasonable level.
§ BARONESS SUMMERSKILLMy Lords, can the noble Earl tell us what will happen when he and his " good lady " reach the age of 70 or 80? Will they still be able to shop around?
EARL ST. ALDWYNMy Lords, possibly we shall not be able to shop around with quite the same rapidity, but I believe that a large number of people of 70 still succeed in shopping around very successfully.
§ LORD BURTONMy Lords, is my noble friend aware that one of the sharpest inflationary spirals in butchers' meat took place following the imposition of selective employment tax?