HC Deb 04 December 1961 vol 650 cc125-6W
Mr. de Ferranti

asked the Chancellor of the Exchequer what annual percentage increase in earnings is represented by the recent award to the teaching pro- fession, the award to London airport employees and the award to employees in the electrical industry; and what estimate he has made of the long-term percentage increases in earnings which would be consistent with stable prices at the present national growth rate and of the percentage increase that would be consistent if the United Kingdom achieved a growth rate of 5 per cent.

Mr. Selwyn Lloyd

The increases in teachers' salaries, to take effect from 1st January, 1962, will amount to an improvement of 14.6 per cent. on present scales which have been in force from October, 1959: thus the annual percentage increase may be regarded as about 6½ per cent. The increase awarded to certain London airport employees is in a different category: it arises out of a decision to regrade and, when it comes into effect, will increase the pay of those affected—about one-third of the total number of loaders—by about 5.6 per cent. In the case of electricity workers the average increase in earnings after 28th January, 1962, is estimated at rather less than 5 per cent.: but, as they had their last increase in August, 1960, the annual percentage increase may be regarded as about 3.3 per cent. If import prices do not change, the rate of increase of average earnings, which is consistent with stable prices, cannot exceed the rate of increase of output per worker, or in other words, of national productivity. Experience in the postwar years suggests that national productivity in the United Kingdom has been increasing at a rate in the region of 2 per cent. per annum. I estimate that output per worker would have to grow at about 4½ per cent. per annum to produce growth at 5 per cent. per annum in United Kingdom output as a whole.

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