HC Deb 07 April 1970 vol 799 cc44-5W
44. Sir T. Beamish

asked the Chancellor of the Exchequer what was the average overall increase in the gross domestic product in all European Economic Community and European Free Trade Association countries, excluding Luxembourg, between 1964 and the latest convenient date, from information available from international sources; how this compares with the overall increase in the United Kingdom in the same period; and what has been the shortfall in the national resources caused by falling behind the average increase in European Economic Community and European Free Trade Association countries.

Mr. William Rodgers

From 1964 to 1967, the latest date for which comparable figures are available from returns made to O.E.C.D., the gross domestic product of the countries of the European Economic Community and the European Free Trade Association (excluding Luxembourg) increased on average overall by 10.6 per cent. (at 1963 prices and 1963 exchange rates). The comparable increase for the United Kingdom was 6.4 per cent. The difference represents about £1,400 million in 1967 in terms of the gross domestic product of the United Kingdom at constant market prices.

45. Sir T. Beamish

asked the Chancellor of the Exchequer what has been the overall shortfall in national resources between 1964 and 1969 as a result of not maintaining the growth of the gross domestic product, taking the average of the expenditure, output and income measures, at the rate at which it increased between 1959 and 1964.

Mr. William Rodgers

Taking the average of the expenditure, output and income measures, I estimate that in 1969 g.d.p. was about £2,500 million lower, at constant 1963 prices, than if growth had proceeded between 1964 and 1969 at the rate achieved between 1959 and 1964. In the earlier period the rate of growth of g.d.p. exceeded the estimated underlying rate of growth of productive capacity. This was in the main due to high rates of growth in 1963 and 1964. These were accompanied, however, by a severe deterioration in the "basic" balance of payments, culminating in a deficit of £747 million in 1964. It has since been necessary to correct this imbalance.