§ Mr. Austin Mitchellasked the Chancellor of the Exchequer whether the Treasury index of relative normal unit labour costs is the only index of competitiveness used in forecasting in the Treasury model.
§ Mr. LawsonNo. The index referred to is used to forecast exports of manufactures. Six further competitiveness indices are constructed—two based on relative labour costs, and four based on relative prices—for use in the equations for manufactures imports volumes and for exports and imports of services. Details of the construction of these other measures, and of the equations in which they enter, are available in the Treasury macro-economic model technical manual a copy of which is in the Library. An updated equation and variable listing will be published shortly.