HC Deb 22 July 1965 vol 716 cc1806-7
1. Mr. Evelyn King

asked the First Secretary of State and Secretary of State for Economic Affairs what has been the average price increase since October last in goods sold or services provided by nationalised industries, including the Post Office; how far this conforms with Government policy; and whether he will make a statement.

2. Mr. Walters

asked the First Secretary of State and Secretary of State for Economic Affairs how many nationalised industries have increased charges to consumers since October, 1964.

20. Mr. William Hamilton

asked the First Secretary of State and Secretary of State for Economic Affairs what was the average percentage increase in prices charged by the nationalised industries in the last 12 months; and what was the average increase in the private sector in the same period.

The First Secretary of State and Secretary of State for Economic Affairs (Mr. George Brown)

A number of nationalised industries have increased their charges during the past year. I will, with permission, circulate more detailed information in the OFFICIAL REPORT. As I explained in our debate on 11th May, there are established procedures for ensuring that these increases are no greater than is necessary and take place only after every effort has been made to absorb increased costs in greater efficiency.

Mr. King

May I first congratulate the right hon. Gentleman on having at his disposal a Prices and Incomes Board which is an authoritative body? As he now has a stick with which to chastise an inefficient monopoly, will the right hon. Gentleman assure the House that he will use it without fear and without favour?

Mr. Brown

I would not wholly endorse the description which the hon. Gentleman gave of the Board, but certainly we will use it without fear or favour.

Mr. Hamilton

Does my right hon. Friend recognise that, as far as the National Coal Board is concerned, coal prices have been stable for three or four years now and that if there has been a price increase to the consumer it has arisen directly out of the privately-owned sector, namely, the distributive sources, as was explained by the Coal Consumers Council recently? When my right hon. Friend circulates his information in the OFFICIAL REPORT, will he make that quite clear?

Mr. Brown

Perhaps my hon. Friend will have a look at the information circulated. If he needs any more, I will do my best to give it. As I have repeatedly said, I would like to think that private enterprise has been as good as public enterprise in this field.

Captain Orr

Would the First Secretary consider referring to the Board the cost of transport services across the Irish Sea?

Mr. Brown

That question does not seem to arise out of this Question, but if the hon. and gallant Member will put it down I shall certainly consider it.

Following is the information: Since October 1964, there have been significant increases in price by nationalised industries as follows: electricity (nine area boards and the Central Electricity Generating Board); the Scottish Area Gas Board; coke (sold by the N.C.B. and area gas boards); British Railways; British Road Services; the Air Corporations (for some international fares) and the charges in certain British Transport docks. In addition Post Office charges for postal services were increased in May 1965. It is not possible to give a percentage figure averaging all these increases in a way which would be meaningful. However, on the basis of the Index of Retail Prices, the average percentage increase in prices charged by the nationalised industries as a whole to domestic consumers between 16th June, 1964, and 15th June, 1965, was about 6 per cent. and between 15th October, 1964, and 15th June, 1965, about 3 per cent. For the purpose of calculating these figures, the goods and services provided by nationalised industries are defined as coal, coke, gas, electricity, rail and road passenger transport, postal and telephone service. It is not possible to give comparable figures for increases in the private sector alone.