HC Deb 03 October 1939 vol 351 cc1789-90
5. Mr. Glenvil Hall

asked the President of the Board of Trade whether he is aware that the premiums under the State insurance scheme are being used as a pretext for an additional increase in the price or" a commodity at each stage of its passage from the producer to the consumer; and whether steps will be taken to prevent the amount of any premium being added to the price?

The President of the Board of Trade (Mr. Oliver Stanley)

I am aware that tradersare in many cases adding the cost of war risks insurance to the prices which they charge for their goods. I cannot agree that the addition to the prices of the amount of the premium actually incurred is unreasonable, though, as my hon. and gallant Friend the Parliamentary Secretary of the Board of Trade explained in answer to a question by the hon. Member for Lowestoff (Mr. Loftus) on 21st September, the cost of insurance should, in the majority of cases, be a negligible percentage of the price of goods insured. Wherever excessive increases in price on the pretext of war risks insurance have been brought to my notice, they are being investigated. As I have stated, a Bill to deal with unjustifiable increases in price will be introduced at a very early date.

Mr. Robert Gibson

Can the right hon. Gentleman give an indication as to what would be a reasonable and not an excessive increase?

Mr. Stanley

As I have explained before, it depends upon the rate of turnover of the goods in question. Certainly, any increase over 6 per cent., if the goods are being turned over only once a year, would be excessive, and 6 per cent, would be excessive for goods turned over twice, three times, or even four times a year.

7. Major Stourton

asked the President of the Board of Trade when it is proposed to introduce anti-profiteering legislation, and whether, in particular, proceedings will be taken against those contractors who have made large profits by buying up all available supplies of sandbags and retailing them to the public at greatly enhanced prices?

Mr. Stanley

I fear I am not yet in a position to add to the reply which I gave to the hon. Member for Leigh (Mr. Tinker) on 28th September.