HC Deb 24 January 1967 vol 739 cc1256-7
26. Mr. Milne

asked the Minister of Technology on what grounds he allowed Granada T.V. Rentals to adjust their agreements with customers in such a way as in effect to increase prices and if he will now make a statement on television rental charges.

Mr. Benn

This company has made no approach to my Department regarding these adjustments to its charges. I have, however, arranged for enquiries to be made.

My right hon. Friend the First Secretary of State and Secretary of State for Economic Affairs and I have agreed that, in view of the widespread public interest in this subject, it would be appropriate for a general examination of the structure of costs and charges in the industry to be undertaken by the National Board for Prices and Incomes.

Mr. Milne

Is my right hon. Friend aware that there will be considerable satisfaction with that Answer and we await the outcome of the investigations?

Mr. Benn

I am grateful to my hon. Friend for saying this. There have been a number of letters about it. Some difficulties have arisen because charges which were raised before 20th July came up only when individual rental arrangements became due for renewal and, therefore, not all the cases which have been brought to my attention have indicated a rise in charges since July.

Mr. Biffen

The Minister says that he has not been approached by this company. Will he none the less confirm that at law there is absolutely no requirement whatever on this company to have informed the Government of its proposal to increase charges?

Mr. Benn

That is perfectly correct, but since a Question was tabled about it I explained that I had not been approached by this company but was making inquiries. There is no confusion at all about the legal position here.

Mr. Gardner

When my right hon. Friend is undertaking this study, will he also make a study of the type of literature which is being issued by television rental companies to their customers about increased prices? I am sure that he will agree that this amounts to little less than political propaganda and that some of the figures are very doubtful indeed.

Mr. Benn

I am not making this inquiry. My right hon. Friend the First Secretary of State and I are referring it to the National Board for Prices and Incomes. Those increases in rental which have come to our attention have always been below that which would have been justified by the taxation changes which were permitted.