§ 19. Mr. Geoffrey Cooperasked the President of the Board of Trade if he is satisfied, in view of the large profits recently made by certain carpet manufacturers, that the method of calculating the prices of carpet for utility and other grades is strictly in accordance with the method of calculating the profits before the war; and if he will state the basis on which the calculations are made by the price-fixing mechanism employed or approved by his Department.
§ Mr. H. WilsonThe prices fixed for home-produced carpets are not related to prewar methods of calculation; they are 505 arrived at on the basis of the costings of representative manufacturers. A recent investigation by the Board's Accountant Adviser gives no reason to suppose that current prices return a more than reasonable profit to firms of average efficiency, but this does not, of course, preclude high profits being made by firms of more than average efficiency, or upon exports, the prices of which are not controlled. I am, however, having the prices of carpets reviewed.
§ Mr. CooperIs my right hon. Friend aware that, in some cases, members of his own price regulation committees have suggested that there could be reductions of, in some cases, up to 10 per cent. in the price of various items; and can he say what steps he has taken to see that his officials are well conversant with the methods of calculating profits in order to ensure that no excessive profits are made? If I submit a memorandum to him outlining the position, will he investigate it?
§ Mr. WilsonI cannot take notice of the views of individual members of price regulation committees, but only of those of the committee as a whole, and they have not expressed the view which my hon. Friend is now expressing. I shall, of course, be very glad to consider any evidence he may care to submit to me on this matter.