§ 48. Mr. Tinkerasked the Chancellor of the Exchequer whether he is following up the recommendations submitted in the White Paper [Cmd. 6294], on the stabilisation of prices, and arranging where increases are necessary to provide a subsidy to meet it; is he aware that coal prices in Lancashire have increased by 1s. 8d. per ton; and will he consider granting a subsidy in this case?
§ The Chancellor of the Exchequer (Sir Kingsley Wood)The Government are adhering to the policy stated in my Budget speech and in the White Paper. As I have previously explained, this does not imply that a subsidy must be provided in every individual case where an increase in costs would justify an increase in the price of goods or services. An increase of 1s. 6d. (not 1s. 8d.) a ton on Lancashire coal prices has recently been approved. I do not consider that its general effect will be such as to justify the institution of a subsidy on pit-head prices.
§ Mr. TinkerSeeing that price stabilisation has been approved and recognised, is it not time that action was taken on the lines suggested in my Question? If the Government do not do that, prices will rise and people will demand increases in wages, and poor people, old age pensioners, cannot afford to pay the price increases. This is a grand opportunity for the Government to deal with all essential commodities, and I hope they will take advantage of it.
§ Sir H. WilliamsIs the Purchase Tax part of the subsidy scheme for reducing the cost of living?
§ Sir K. WoodI seem to have heard that before from my hon. Friend.
§ Sir H. WilliamsI am still awaiting my right hon. Friend's answer.