HC Deb 05 May 1966 vol 727 cc1846-7
23. Mr. Dickens

asked the First Secretary of State and Secretary of State for Economic Affairs whether he will refer the increases in the prices charged by the Standard-Triumph Motor Corporation to the National Board for Prices and Incomes.

Mr. Albu

No, Sir.

Mr. Dickens

May I draw my hon. Friend's attention to the fact that this company has increased its dividends from £2,200,000 in 1961 to £3,100,000 in the latest financial year for which figures are available? Will he now take steps to reopen discussions with this company with a view to it pursuing a policy more in line with the national interest?

Mr. Albu

The Government were given early warning of the price increases, and considered them carefully, but we did not think that this was a case where reference was desirable. In fact, the company has successfully absorbed most of the cost increases which it has had to face since the last increase in prices.

Sir G. Nabarro

Is it not a fact that these price increases arose not only from an increase in labour costs, but, in addition, from a sharp increase in the cost of steel, sanctioned by the Government, and a fortuitous increase in the price of copper?

Mr. Albu

Whether the hon. Gentleman considers an increase in the price of copper fortuitous, I do not know. All I know is that we took into account the criteria in the prices and incomes policy when considering whether or not to refer this price increase to the Board.

Sir S. McAdden

Will the Minister bear in mind that the increases in prices are also caused by unofficial strikes at this factory, as a result of which the firm has had to lay off many hundreds of men?

Mr. Albu

This does not seem to be peculiar to this particular factory.

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