HC Deb 19 April 1951 vol 486 cc1974-5
1. Mr. Osborne

asked the President of the Board of Trade what has been the average percentage rise in utility clothing ceiling prices between August, 1945, and February, 1951; and what are the respective figures for the most important half dozen items.

The President of the Board of Trade (Mr. Harold Wilson)

There are many thousands of ceiling prices for utility clothing and there have been substantial changes in the various utility schemes during the last five and a half years. Many new utility cloths have been introduced, and the austerity regulations which were generally in force in 1945 have long since disappeared. These factors make it impossible to compare maximum prices even for one group of articles over the years, much less to make a comparison for the utility clothing scheme as a whole. As far as changes in actual retail prices are concerned, I would refer the hon. Member to the reply which my hon. Friend the Parliamentary Secretary to the Ministry of Labour gave to a question by the hon. Member for Dorset, West (Mr. Digby) on 3rd April.

Mr. Osborne

May I ask the President of the Board of Trade two questions? First, does he think that the rise in utility clothing prices has, on the average, been greater than is shown by the fall in the cost-of-living index of between 20s. and 15s. 9d. for the same period? Second, since raw materials are still costed at a very much lower rate than replacement costs, does he think that the present prices can be held for any length of time?

Mr. Wilson

I have made it clear to the House on a number of occasions that further increases will be necessary as the dearer raw material works its way through to the production stage. As to the first part of the question, I have no reason to suppose that the clothing component of the retail price index, which would be a proper comparison, does not reflect accurately the changes in utility and other clothing prices.

Mrs. Jean Mann

Is my right hon. Friend wearing his monkey-nut suit?

Mr. Wilson

I am not sure that that arises out of this Question, but the answer is "Yes."

Mr. Rankin

Is my right hon. Friend aware that utility cloths are being withheld by manufacturers from retailers, pending the expected increase in the price? Can he take any action in that matter?

Mr. Wilson

I have no evidence on that question, but there is always the danger that this may happen if we postpone price increases, as it is reasonable to do.

Mr. Hamilton

Is my right hon. Friend satisfied that the pending increases in the price of utility clothing cannot be minimised by further reductions in the profit margin?

Mr. Wilson

We are keeping a very close watch on the utility profit margin, and I can assure my hon. Friend that the ceiling prices are not unreasonable.

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