Price Restraint

Oral Answers to Questions — Prices and Consumer Protection – in the House of Commons at 12:00 am on 2nd February 1976.

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Photo of Mr Ioan Evans Mr Ioan Evans , Aberdare 12:00 am, 2nd February 1976

asked the Secretary of State for Prices and Consumer Protection what discussions she has had with the Retail Consortium and the CBI regarding plans for voluntary price restraint on basic foods and other household goods.

Photo of Mr John Cartwright Mr John Cartwright , Greenwich Woolwich East

asked the Secretary of State for Prices and Consumer Protection if she will make a statement on her negotiations with industry and commerce leading to the introduction of selective voluntary price restraint.

Photo of George Young George Young , Ealing Acton

asked the Secretary of State for Prices and Consumer Protection if she has reached agreement on her selective price restraint scheme; and if she will make a statement.

Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames

asked the Secretary of State for Prices and Consumer Protection if she has reached agreement on her selective price restraint scheme; and if she will make a statement.

Photo of Hon. Peter Morrison Hon. Peter Morrison , City of Chester

asked the Secretary of State for Prices and Consumer Protection whether she has reached agreement on her selective price restraint scheme; and if she will make a statement.

Mr. Alan Williams:

My right hon. Friend described the outcome of her discussions on the selective price restraint scheme in her statement on 27th January. The scheme comes into operation for manufacturing industry today and will do so for retailing and for service industries on 16th February.

Photo of Mr Ioan Evans Mr Ioan Evans , Aberdare

I congratulate the Government on reaching agreement with the Confederation of British Industries and with the Retail Consortium. What reactions have the Government received from the Trades Union Congress and consumer organisations? Despite the rise in the price of potatoes, in view of the Government's success in keeping down prices generally, when may we expect an announcement from the Government that they intend to launch a major publicity campaign to make housewives aware of the scheme?

Mr. Alan Williams:

The response from the TUC and the consumer groups, unlike that from the Opposition, has been favourable. Publicity will be geared to the starting of the scheme at the retail level and will not, therefore, be starting immediately—otherwise, in the interim period it would raise hopes which would not be justified.

Photo of George Young George Young , Ealing Acton

What arrangements have been made by the Department to control prices charged by the nationalised industries?

Mr. Alan Williams:

My right hon. Friend indicated last week that we are not talking of controlling prices; we are entering into a voluntary agreement. The public sector, like the private sector, has been asked to consider what contribution it can make to this agreement, and in due course the full list will be announced.

Photo of Mr Mike Thomas Mr Mike Thomas , Newcastle upon Tyne East

In view of the importance of fuel and postage costs in the household budget, will my hon. Friend explain how it is that private industry has voluntarily entered into such an agreement whilst publicly-owned industries, which are the direct responsibility of my right hon. Friends, have appeared to be reluctant to do so?

Mr. Alan Williams:

My hon. Friend cannot have read the statement made by my right hon. Friend, when she made it clear that the public sector will be cooperating. My hon. Friend will recognise that in a situation of soaring international energy prices we have to aim at viability in our energy prices.

Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames

Is the hon. Gentleman aware that the Question asked by the hon. Member for Aberdare (Mr. Evans), unlike the potato, appears to have been well planted and is not a very typical reaction? Will he confirm that many of the items included in the list would not have risen by 5 per cent. in price anyway? Will he therefore answer the question that the Secretary of State did not answer recently, about what the effect of the scheme will be on the index of retail prices?

Mr. Alan Williams:

If my hon. Friend's Question were planted—it would surprise me if it had been—all I can say is that it has yielded a very good crop, unlike last year's potatoes. It is impossible to predict the price index in advance. [HON. MEMBERS: "Ah!"] Clearly hon. Members expect that one should have a crystal ball when one stands at the Dispatch Box.

We cannot precisely anticipate what price changes may take place over the six months of the scheme.

Photo of Mr Ioan Evans Mr Ioan Evans , Aberdare

On a point of order, Mr. Speaker. An hon. Gentleman on the Opposition Front Bench has alleged that my Question was planted. May that remark be withdrawn? I have had no contact with the Department, and this Question appeared on the Order Paper before my right hon. Friend's statement last week. Will the hon. Gentleman withdraw his imputation?

Photo of Mr Norman Lamont Mr Norman Lamont , Kingston upon Thames

Further to that point of order, Mr. Speaker. In accordance with my usual habit, I withdraw the allegation.

Photo of Mr Selwyn Lloyd Mr Selwyn Lloyd , Wirral

Whether or not the allegation was well founded, this is rather a waste of time.

Photo of Hon. Peter Morrison Hon. Peter Morrison , City of Chester

Will the Minister of State confirm that only 20 per cent. of all goods are affected by the price restraint scheme? Does he agree that the average housewife, doing the normal amount of shopping, will hardly benefit from it at all?

Mr. Alan Williams:

A scheme that covers between 15 per cent. and 20 per cent. of goods is a marked contribution. The subsidy scheme and the previous price restraint scheme were beneficial. I am surprised that the Opposition should be carping at a scheme that is so extensive.