§ 64. Sir I. Fraserasked the Chancellor of the Exchequer whether he has any statement to make about the policy of the Government for dealing with the serious increase in the cost of living.
§ Mr. GaitskellThe official index of retail prices remains for Mid-September at the figure of 114 at which it has stood now for several months, apart from a fall to 113 in August. The recent rise in the prices of many of our raw material imports, however, which is itself to a large extent the consequence of the generally higher level of defence expenditure in most of the world, is likely to produce a small rise in the index in the next few months.
In order to limit the effects of higher world prices upon our own cost of living, it will be necessary to continue the present disinflationary policies including price control and food subsidies and to achieve at the same time the highest possible level of production and saving.
§ 68. Mr. Osborneasked the Chancellor of the Exchequer if he will appoint a judicial committee to investigate and report upon the cost-of-living index structure in view of the conflicting views recently expressed on behalf of the Treasury and the trades unions respectively on the trend of the cost of living, upon which claims for increased wages for many workers are at present under negotiation.
§ Mr. GaitskellThe method of construction of the Interim Index of Retail Prices was worked out in 1947 by a 323W technical sub-committee of the Cost of Living Advisory Committee. The proposals were fully endorsed by the Advisory Committee on which the trades unions and the Co-operative Movement were represented and were accepted by His Majesty's Government as the basis for preparing the present Interim Index. I therefore see no reason for appointing a judicial committee.