HC Deb 08 March 1951 vol 485 cc80-1W
82. Mr. Osborne

asked the Minister of Labour if he is aware that, because the cost-of-living index is considerably below the real cost of living, over 1,500,000 workers whose wages are based directly on the index are being paid lower wages than they should receive; and, in view of the importance of removing this injustice, if he will state when he expects to receive the report of the Cost of Living Advisory Committee.

Mr. Bevan

The question how far the Interim Index of Retail Prices correctly reflects the increase in prices that has taken place since 1947 is being examined by the Cost of Living Advisory Committee, but it is too early yet to say when the report will be available.

83. Mr. Osborne

asked the Minister of Labour to state all the data upon which the cost-of-living index is based, giving the description, quality, price and quantity of each item separately.

Mr. Bevan

The Retail Prices Index covers nearly 250 items and each month's index figure is based on many thousands of price quotations, the prices and qualities varying from month to month. Full details of the items included in the index and of the relative weights assigned to various items or groups of items are given in the Stationery Office publication "Interim Index of Retail Prices: Method of Construction and Calculation".

86. Colonel Ropner

asked the Minister of Labour what weight is given in the cost-of-living index to the price of rail fares; and by how much it is estimated this would be altered if rail fares went up by 2s. in the £.

Mr. Bevan

The weight assigned to rail fares in the Interim Index of Retail Prices is eight out of 1,000 for all items. As the index is calculated by reference to a fixed series of weights, an increase of 2s. in the £ in rail fares would not alter the weight for fares, but it would cause a rise in the all items index figure of approximately one-tenth of a point.

95. Sir W. Smithers

asked the Minister of Labour if he will set up an independent committee of experts, unconnected with Government Departments, to recommend what form the cost-of-living index should take.

Mr. Bevan

No. The Cost of Living Advisory Committee, which is at present considering this matter, includes independent experts, and the majority of its members are unconnected with Government Departments.