Wages and Cost-of-Living.

Oral Answers to Questions — Unemployment. – in the House of Commons am ar 15 Mehefin 1933.

Danfonwch hysbysiad imi am ddadleuon fel hyn

Photo of Mr Arthur Samuel Mr Arthur Samuel , Farnham

8

asked the Minister of Labour (1) by how much the real value of average weekly wages has risen or fallen as at 1st June, 1933, by comparison with the real value for the year 1924, using columns 3 and 4 of page 85 of the Macmillan Report [Cmd. 3897] as the basis of calculation;

(2) can he state the cost-of-living index (M/L) for 1924 (using basis: 1924 equals 100 in each case) and the cost-of-living index for the latest ascertained period in 1933, and, similarly, the index number of average weekly wages for 1924 and the index number for the latest ascertained period in 1933; and will he make the calculation as it was made in paragraph 187 of the Macmillan Report [Cmd. 3897] in order that the loss or gain in the real value of weekly wages may be compared as between the two years 1924 and 1933;

(3) whether he will, soon after 1st July next, bring up to date, and in the same form, the comparative tables which showed wholesale prices, cost-of-living, and certain other related indices in paragraph 187 of the Macmillan Report [Cmd. 3897] by adding the figures for the completed years 1931 and 1932, and for the first six months of 1933, and publish the tables in the Board of Trade Journal?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

I have had a detailed reply prepared which, with my hon. Friend's permission, I will circulate in the OFFICIAL REPORT.

Photo of Mr Arthur Samuel Mr Arthur Samuel , Farnham

Will the right hon. Gentleman consider allowing his reply to appear in the Ministry of Labour Gazette and giving it some prominence?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

I will consider that suggestion.

Photo of Mr Arthur Samuel Mr Arthur Samuel , Farnham

May I also put this consideration to the right hon. Gentleman? In view of misconception arising as to the value of wages, would it not be advisable to give the fullest publicity to this information?

Photo of Mr Jack Lawson Mr Jack Lawson , Chester-le-Street

Will the right hon. Gentleman make it clear, however, that the Ministry receive comparatively few of the agreements which are made throughout the country, and are not therefore in a position to speak with authority as to the real wages received?

Photo of Mr Arthur Samuel Mr Arthur Samuel , Farnham

Is the right hon. Gentleman aware that we can compare like with like?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

I will consider all these things. I agree that the fullest publicity should be given to this matter, and I will consider the suggestion that these details should be published in the Ministry of Labour Gazette.

Following is the reply:

On the basis of the average level of the year 1924 taken as = 100, as used in the table in paragraph 187 of the Macmillan Report, the official index number of working-class cost of living at 1st May, 1933 (the latest date for which figures are at present available), was approximately 78, and the index number of average weekly full-time rates of wages was approximately 95. The increase between 1924 and 1st May, 1933, in the real value of average full-time weekly rates of wages, as indicated by these figures, was approximately 22 per cent. This calculation takes no account of the effects of short-time, unemployment, and other factors on the average level of actual earnings at the two dates, as to which comprehensive statistics are not available.

Statistical tables showing the quarterly changes in wholesale prices, cost of living, average weekly wage rates, and industrial production, on the basis of the year 1924 taken as = 100, as used in paragraph 187 of the Macmillan Report, are published regularly in the quarterly Supplement to the Ministry of Labour Gazette. The latest issue of this Supplement, containing figures for the years 1924 to 1932, and for the first quarter of 1933, was published with the current (May) issue of the Gazette. Figures for the second quarter of 1933 will appear in the next quarterly Supplement, which will be published with the August issue of the Gazette.

Photo of Mr John Parkinson Mr John Parkinson , Wigan

7.

(for Mr. WILLIAMS) asked the Minister of Labour if he can state what is the percentage increase of rents over the 1914 level of the controlled houses and of the decontrolled houses covered by the inquiries for the cost-of-living index?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

It is estimated that at 1st May, the latest date for which figures are at present available, the average increase over the level of July, 1914, in rents, including rates, was approximately 48 to 49 per cent., in the case of controlled working-class dwellings, and about 85 per cent. in the case of decontrolled working-class dwellings.

Photo of Mr William Lunn Mr William Lunn , Rothwell

11.

(for Mr. TOM SMITH) asked the Minister of Labour whether the rent statistics used in compiling the cost-of-living index are still confined to pre-War houses; and whether, in that event, he will consider including post-War houses, and thus bring the figure more nearly into line with the actual conditions of housing and rents?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

The cost-of-living index number is designed to indicate the average increase in the cost of maintaining unchanged the pre-War standard of living of working-class families, and the rent statistics included relates only to pre-War houses. I am afraid that it would be difficult to include the rents of post-War houses within the scope of the present index number owing to the absence of any pre-War basis for calculating percentages of increases in the rents of such houses.

Photo of Mr William Lunn Mr William Lunn , Rothwell

In view of the great change that there has been in rents since the War, is it not time that there was a revision of the Index?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

What the hon. Gentleman says is true. There has been a change, of course. I appreciate very much the importance of the point, and I am now considering it.

Photo of Mr Samuel Hammersley Mr Samuel Hammersley , Stockport

Can the right hon. Gentleman say whether rents have fallen comparably with the fall in the cost of the other items in the Index?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

I cannot say that without notice. If the hon. Gentleman will put the question down, I will try to answer it.

Photo of Mr David Grenfell Mr David Grenfell , Gŵyr

12.

asked the Minister of Labour if he will state what proportion of the pre-War houses, the rents of which are used as a basis for the cost-of-living index figure, are now decontrolled?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

Of the pre-War working-class dwellings of which account is taken in the compilation of the official cost-of-living index figure, it is estimated, on the basis of such information as is at present available, that approximately one-fifth are now decontrolled.

Photo of Mr David Grenfell Mr David Grenfell , Gŵyr

Can the right hon. Gentleman form any estimate as to the increase of rent that has taken place because of decontrol.

Photo of Mr David Grenfell Mr David Grenfell , Gŵyr

Will the right hon. Gentleman take into account the effect of decontrol and the increase of rent that usually takes place when he reconsiders the whole subject?

Photo of Mr Herbert Williams Mr Herbert Williams , Croydon South

Is it not the case that the monthly article in the Ministry of Labour Gazette takes these matters into account and can be consulted in the Library?

Photo of Sir Henry Betterton Sir Henry Betterton , Rushcliffe

Yes, but I do not think that that is the question put by the hon. Gentleman.