§ 3.1 p.m.
§ Lord ORR-EWINGMy Lords, I beg leave to ask the Question which stands in my name on the Order Paper.
§ The Question was as follows:
§ To ask Her Majesty's Government when they expect the Sandilands Committee on inflation accounting to report.
§ Lord JACQUESMy Lords, I understand Mr. Sandilands' Committee hope to be able to submit their Report to the Governmert by about the end of April, and it is the Government's intention to publish it as soon as possible thereafter.
§ Lord ORR-EWINGMy Lords, while I am grateful for that reply, may I ask whether the noble Lord realises that, with the presen: inflation rate of over 20 per cent, in the British economy, it is increasingly important that a new method of calculating profits should be arrived at throughout British industry? Does he realise that, until this is done, in industry we are paying grossly inflated taxation, and it is very difficult to plan our cash-flow and our investment until a more realistic method is arrived at? Will the Government do all that is possible to promote an agreement on an up-to-date method of inflation accounting for industrial firms in this country, on which the whole future of our economy so deeply depends?
§ Lord JACQUESMy Lords, my right honourable friend has shown his awareness of this problem by granting the allowance on stocks in advance of the Committee's Report. He also says that he will publish the Report as soon as it is available, and that he hopes there will be public discussion, to which he will listen with interest.
§ Lord DRUMALBYNMy Lords, will the Chancellor of the Exchequer have had a preview of the Report before he makes his Budget Statement?
§ Lord JACQUESI would doubt that, my Lords.
§ Lord GISBOROUGHMy Lords, can the noble Lord say whether an allowance will apply to capital equipment as well as stocks?
§ Lord JACQUESMy Lords, I am quite unable to anticipate the Report.
§ Lord SELSDONMy Lords, would not the noble Lord agree that the desirability of inflation accounting depends not only on the current rate of inflation but on the estimated future rate of inflation? Will he give us some idea of what he anticipates the rate of inflation will be by the end of this year?
§ Lord JACQUESVery enticing, my Lords, but that is quite another question.
§ Lord ORR-EWINGMy Lords, will the noble Lord therefore agree, as a result of his favourable Answer, that when this Report arrives there will be a great sense of urgency in implementing it— because there is a feeling that this matter has been debated for too long in an increasingly inflationary economy? This is very detrimental to the wellbeing of British industry and, indeed, of the employment position in our country, about which all Parties are so deeply perturbed.
§ Lord JACQUESMy Lords, I think that my right honourable friend, by both his actions and his words, has shown that he regards the matter as one of urgency.