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Wages, Salaries And Dividends

Volume 643: debated on Tuesday 27 June 1961

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20.

asked the Chancellor of the Exchequer what was the percentage rise in wages, salaries and dividends, respectively, during 1959, 1960 and the early months of 1961.

Between 1958 and 1959 total wages are estimated to have risen by 3½ per cent., total salaries by nearly 7 per cent. and ordinary dividend payments before deduction of tax by 12½ per cent. Between 1959 and 1960 wages and salaries together—separate figures are not yet available—are estimated to have risen by 7½ per cent. and gross ordinary dividend payments by about 24½ per cent. Preliminary indications for the first quarter of 1961 are that wages and salaries were about 9 per cent. higher than a year earlier and gross ordinary dividend payments about 12 per cent. higher than a year earlier.

In view of these figures, will the Chancellor give an undertaking to produce some plan for limiting increases in dividends before talking about more wage restraint?

No, Sir. Of course, as the right hon. Gentleman knows, moderation is important here as in other increases in personal incomes and I certainly would not wish to minimise its importance. But it is necessary to keep a sense of perspective in this matter. In 1960 dividends, before taxation, amounted to less than £1,000 million while the wage and salary bill totalled £13,570 million.