§ 30. Mr. Coldrickasked the Chancellor of the Exchequer if he is aware that manufacturers are taking advantage of the reduction in Purchase Tax to increase the cost to wholesalers, so that the price to the consumer is the same as before tax reduction; and if he will take action to prevent this.
§ Mr. R. A. ButlerIt may be that there are cases in which the benefit of Purchase Tax reductions is not passed on to the consumer at once. But the present competitive conditions of the market should serve to prevent this except for adequate reason.
§ Mr. ColdrickIs the Chancellor aware that Gillette Industries Limited have raised the price on their blades to such a figure that it makes it impossible for the retailer to sell to the consumer at a lower figure than that prevailing before the Budget, and does he not think that such razor-like practice on the part of Gillette Industries Limited nullifies the whole purpose of granting tax reductions?
§ Mr. ButlerI cannot be responsible for individual practices. The object of the Budget was to see that these prices were reduced, and I very much hope that the state of the market will ensure this reduction in due course.
§ Mr. JayHave the Chancellor or the Government taken any steps, as the Government did after the Budget of 1951 by means of price control, to see that the reductions are handed on to the public?
§ Mr. ButlerYes, Sir, I have studied the device used but from my study of market conditions I realise they are now very different, and I do not think that the device previously used could be effective.