33. Mr. Norman Smithasked the Minister of Supply and of Aircraft Production whether he is aware that the average cost of tyres to Nottingham City Council's transport department has risen since 1939 from 0.199 pence per vehicle mile to 0.87 pence; and in view of the high profits made by tyre companies, what steps he proposes to take to prevent manufacturers from charging needlessly high prices to consumers.
§ Mr. WilmotTransport undertakings obtain their tyres in one of two ways—either by purchase or on a mileage basis. The purchase prices of giant tyres have been raised by about 80 per cent. above pre-war on account of increases in costs. These increases have had the approval of my Department, The second method, which is that followed by the Nottingham City Council, includes not only the supply but also the inspection, servicing and replacement of tyres by the manufacturer. Costs here have risen more steeply because of factors such as the lower lasting qualities of synthetic rubber, and the consequent need for more frequent replacement. Arrangements on this basis are not subject to scrutiny by my Department, but it is of course open to any local authority to purchase its tyres if it desires.