Additional Powers of Price Commission to Prevent or Restrict Price Increases

Part of Clause 3 – in the House of Commons at 12:00 am on 12 June 1974.

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Photo of Mr Paul Channon Mr Paul Channon , Southend West 12:00, 12 June 1974

We had a debate on Clause 3 in Committee but I am still somewhat at a loss to know why it is necessary to have the clause in the Bill. The Committee was not satisfied by the reasons which were advanced by the Government. We had a tie on that occasion.

The powers given to the Price Commission in Clause 3 are extremely wide. If there are exceptional circumstances the Secretary of State can direct that the powers shall be exercisable. That can only mean that people who act legally can in exceptional circumstances, and in spite of the fact that they were acting legally, find themselves penalised for something which they were entitled to do. We find that objectionable.

7.0 p.m.

In Committee the hon. Member for Colne Valley (Mr. Wainwright) suggested that the clause should not apply if the implementation of a price rise had taken place earlier than three months prior to the Secretary of State's direction. It is surely a reasonable minimum requirement that if the Secretary of State and the Commission are to act in these unprecedented ways people who have done something should know that, after the expiry of three months, it is reasonable to assume that they will not exercise their power. Without this amendment, the commission will be able to prevent or restrict price increases which were perfectly legal within the code when implemented, because it will be able to say that exceptional circumstances apply. If the commission is to be able to take action on increases which have already been implemented, it should not be able to do so if implementation has been carried out more than three months earlier.

I shall be interested to hear the reasons for the clause. Even if the Government convince us that it should be included in the Bill, why cannot they accept amendments relating to a time limit? I leave my hon. Friend the Member for South Angus (Mr. Bruce-Gardyne), who is responsible for Amendment No. 11, to make his own rather special points, which he raised pungently during the debate on the code. We certainly need from the Government a clear explanation why they think it necessary to have Clause 3.

In Committee the Under-Secretary of State said that he would bear this point in mind and consider it. Even if the clause must be in the Bill, the minimum that the Opposition can tolerate is acceptance of Amendment No. 12, which would impose a time limit of three months on the ability to push back something which was wholly legal. It is a reasonable request. But, even if these powers are to be used with the greatest discretion, I am not sure that such powers should be given to any Secretary of State or to any commission without the most careful scrutiny by the House.