Proposals to Investigate Prices or Margins

Part of Clause 5 – in the House of Commons at 12:00 am on 21 June 1977.

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Photo of Mr Joseph Godber Mr Joseph Godber , Grantham 12:00, 21 June 1977

The hon. Member has twisted the argument that I was developing. He switched from the High Street to the producers. I do not agree with him in any case. I spoke on behalf of the distributors, as Chairman of the Retail Consortium, and in that capacity I was developing my argument. In distribution there is no doubt that there is competition in every sector, other than those controlled by the nationalised industries. That is the only place where competition does not operate in distribution.

I have no authority to speak about production. However, I doubt whether there is a significant kind of monopoly situation. If there is, the Government have powers to stop it under the Monopolies and Mergers Commission. I understand the hon. Member's approach, but I wish he would look at the figures issued by the impartial Price Commission. The figures that I quoted bear out every word that I have said about competition in the distributive trades. This amendment refers only to the distributive trades, so I concentrated on them.

The hon. Member has only to go into any supermarket to see intense competition. One set of stores recently repudiated the use of stamps because it wanted to reduce prices, because of competition from other chain stores. There is intense competition. What I have said is backed up solidly by the Price Commission reports and the information from the Department. The Minister of State cannot deny it.

In relation to distribution, on which I have authority to speak, there is genuine and continuing competition. I think that there is genuine competition in all aspects other than those controlled by the nationalised industries.

3.30 p.m.

This amendment is justified because if there is margin control, as there undoubtedly is, and a system that is not breached, these additional powers to investigate a particular retailer are unnecessary and, I believe, harmful to individual retailers. If a retailer is to be investigated, the investigation takes some time and even if the person is vindicated the fact is that the firm will be damaged. I believe that the amendment deserves to be accepted and that there is no justification for the position that the Secretary of State has taken up. I ask the Minister, despite the views of his hon. Friends below the Gangway, to accept the amendment.

Reference has been made to the employment of school leavers, who are very much in our minds at present. It is true to say that retailers are large absorbers of school leavers. At present, because of intense competition retailers are having to cut back on the number of school leavers taken in for employment. If we choke back retailers' efforts still further, they will be reluctant to take on additional school leavers.