§ 73. Mr. Lewisasked the Chancellor of the Exchequer whether he is aware that compared with five years ago £100 worth of imports costs only £97 today, whereas £100 of exports now fetches £109; and whether, using 1951 as £100, he will give the annual rise and fall in the price of our imports and exports from 1951 to the latest convenient stated date, quoting also for the dates given the internal rise and fall of the cost of living and the £ sterling.
Mr. AmoryThe following is the reply:
— Import prices Export prices Consumer price index Purchasing power of the £ s. d. 1951 100 100 100 20 0 1952 98 105 106 18 11 1953 90 101 108 18 7 1954 88 100 110 18 3 1955 92 102 114 17 7 1956 93 106 118 16 11 1957 95 110 122 16 5 1958 87 110 125 16 0 May, 1959 86 109 125 16 0
§ 74. Mr. Lewisasked the Chancellor of the Exchequer to what extent he estimates the reduction of 3 per cent. in the cost of our imports and the rise of 9 per cent. in the receipts for our exports during the past five years has been responsible for the improvement in our balance of payments and the present steadying of our cost-of-living index figures.
Mr. AmoryA number of factors, which include the reduction in indirect taxation resulting from the last two Budgets and changes in supplies of some kinds of food, have contributed to the relative stability in the retail price index over the past year. The fall in import116W prices during 1957 has also played an important part in halting the upward movement; it is not possible to measure statistically the contribution it has made.
The fall in import prices has also undoubtedly benefited the balance of payments, but again, no quantitative estimate can reliably be made of that benefit. Although the cost of imports was reduced, export earnings and income from investment abroad were both adversely affected by the fall in import prices.