HC Deb 19 December 1927 vol 212 cc18-21
42. Mr. OLIVER

asked the Secretary for Mines whether he is now in a position to make a statement respecting the recent increase in the London coal prices?

The SECRETARY for MINES (Colonel Lane Fox)

The recent increase of 2s. per ton in retail prices in Central London is not due to an increase in pithead prices. The explanation given by the coal merchants who came as individuals in response to my invitation to the Coal Merchants' Federation and the Co-operative Societies was that, in the early part of the summer, they reduced retail prices by 10s. to 11s. per ton, which was more than was justified by the reduction in pit prices. This was done in an attempt to buy back domestic trade which they felt they had lost in consequence of the installation of electric stoves, gas stoves and oil stoves in households during the stoppage of last year, and, secondly, to meet the request of the collieries that they should encourage summer trade as much as possible this year in order to keep miners employed. The public took advantage of these reduced prices to a greater extent than was expected, with the result, the merchants state, that they lost more heavily during the summer than is usual, and more heavily than they had anticipated. The merchants state: The present advance must be taken in conjunction with the large reduction in the summer and as an endeavour to restore this section of the coal industry to an economic basis. Against this it must be stated that the increase of 2s. is not universal. Two large co-operative societies and at least one large firm of merchants, with a few local trolley price exceptions, have not increased prices. A comparison of the margins between pithead prices and retail prices at this period of 1924 and 1927 shows that without the last 2s. rise the margins in favour of the merchants are higher now than in 1924. In these circumstances, I am not satisfied that the 2s. per ton increase in retail prices in Central London put into force on 29th November by the majority of the merchants was justified.

Mr. OLIVER

In view of the opinion expressed in the answer, can the right hon. Gentleman say what steps he proposes to take to see that prices are not raised?

Colonel LANE FOX

The Government have no power to control retail prices. The whole of the merchants have not made this increase, and the public, if sufficiently interested in the matter, can deal with the matter effectively by refusing to pay more than the prices current before 29th November.

Mr. OLIVER

In view of the fact that the Government took upon themselves to increase the working hours of the miners for the purpose of cheapening the price of coal, I think there is some obligation on their part to see that some action is taken against those merchants who have increased prices.

Captain ARTHUR EVANS

In view of the misunderstanding which exists in the mind of the public on this matter, will the right hon. Gentleman consider the advisability of publishing a detailed statement showing the costs of the coal between the pit head and household consumers in London and other districts?

Colonel LANE FOX

No, Sir, I do not think that would be satisfactory. [HON. MEMBERS: "Why not?"] For the simple reason that it is difficult to say exactly what particular parcels of coal have cost. I think it is far better that ordinary competition should be allowed to operate. The public will have the opportunity of comparing prices and of dealing with the firms who offer the coal at the lower prices.

Mr. HOPKINSON

Is not this increase in prices an actual part of the rationalisation of the coal industry which is so widely advocated?

Mr. HARRIS

Is the right hon. Gentleman aware that raising prices in mid-winter hits the very poor, who have no place to store their coal, while the well-to-do, who are able to store it, do not feel the increase?

Mr. T. WILLIAMS

Will the right hon. Gentleman be willing to circulate a statement advising the public to purchase coal from co-operative societies who have not increased their prices?

Colonel LANE FOX

I think this question in the House and the answer given to it, which will be published in the Press, will be sufficient to explain to the people what is the position.

Colonel DAY

Does the right hon. Gentleman admit that he has no power of control?

Mr. PETHICK-LAWRENCE

In view of the statement of the Minister that the Government have no power in this matter, will the Government consider the advisability of taking power to deal with it?

Colonel LANE FOX

I think we should wait, first of all, to see whether the public is not capable of dealing with the situation.

Mr. W. THORNE

Will the right hon. Gentleman try to persuade the whole of the Press to publish in full the statement which he has now made?

Colonel LANE FOX

I think there is no doubt the Press is fully alive to the interest taken in this matter.