HC Deb 01 November 1948 vol 457 c11W
Mr. Platts-Mills

asked the Secretary of State for Foreign Affairs what steps he is taking to remedy the difficulties caused to workers in the bizone by the rising prices resulting from the recent currency reform in Western Germany.

Mr. Mayhew

There has been no rise in prices directly attributable to monetary reform. The hon. Member is no doubt referring to the price increases which followed the removal of the price stop imposed in 1939 and retained by order of the Occupation authorities until April, 1948. As a result of this, open market prices today are considerably higher than the nominal controlled prices of six months ago. However, they are still much lower than the black market prices which the German worker had to pay before monetary reform in order to maintain a moderate standard of living. It is true that wages, which were also stabilised at approximately the 1939 level, have not risen proportionately. The bizonal occupation authorities have, however, empowered the German economic administration to make or permit substantial adjustments, and the responsibility for harmonising price levels and wage levels now rests upon the German authorities.