HC Deb 20 December 1965 vol 722 cc371-2W
Mr. Howe

asked the First Secretary of State and Secretary of State for Economic Affairs what value is assigned to national output for the purpose of estimating in the first sentence of paragraph 2 of Chapter 18 of the National Plan that public expenditure as there defined accounts for about two-fifths of the use of national output; and how the valuation of national output in that sentence is to be reconciled with the valuation of gross national product that is contained in Table 15.1 of the National Plan.

Mr. Albu

National output for the purpose of the comparison made in paragraph 2 of Chapter 18 of the National Plan is gross national product at factor cost at 1965–66 prices. This is the definition customarily used for comparisons with public expenditure. The national output figures in Table 15.1 on the other hand represent gross national product at 1964 market prices.

Mr. Howe

asked the First Secretary of State and Secretary of State for Economic Affairs (1) whether he will identify the items in Table 18.2 of the National Plan whose anticipated growth by 1969–70 takes account of the growth in public expenditure necessary to secure a real increase in standards of living of about 21 per cent. between 1964 and 1970 for the persons receiving any social benefit referred to or employed in providing or maintaining any service referred to in each such item;

(2) whether he will publish in the OFFICIAL REPORT an expanded version of Table 18.2 of the National Plan to show the probable cost in 1969–70 at 1965 Survey prices of each of the items there analysed so as to include such additional expenditure as would be necessary to raise salaries, wages and benefits payable to secure a real increase in standards of living of about 21 per cent. between 1964 and 1970 for all persons receiving any social benefit referred to or employed in providing or maintaining any service referred to in each such item;

(3) what proportion of the use of national output in 1969–70 would be accounted for by public expenditure as defined in paragraph 2 of Chapter 18 of the National Plan when the scale of public expenditure is recalculated to the extent necessary to secure a real increase for public sector employees and pensioners in standards of living of about 21 per cent. between 1964 and 1970.

Mr. Albu

Table 18.2 presents figures which are consistent with the rest of the Plan. The remuneration of State employees is included at constant 1965 public expenditure survey rates, and hence, like the rest of the Plan does not show expected price movements. Whether the standard of living of employees in the public sector will move in line with that of persons in the private sector depends on the relative movements in money earnings. As explained in Chapter 22, the amounts allocated to benefits and assistance in 1969–70 provide a substantial margin for further improvement beyond what is needed to maintain the current provision.