§ Q1. Mr. Ridleyasked the Prime Minister if he will take steps to coordinate the activities of Ministers responsible for preventing prices rising.
§ The Prime Minister (Mr. Harold Wilson)My right hon. Friend the First Secretary is responsible for coordination of prices and incomes policy and no further co-ordination is needed.
§ Mr. RidleyDoes the right hon. Gentleman agree that it appears to be unpopular to have a complete stop on wages, particularly of the lowest paid workers, at the same time as there is an increase in prices of 5d. in the £?
§ The Prime MinisterThe argument here, whether on popularity or on necessity, has been fully debated in the House in a series of debates, but I think that the hon. Gentleman will recognise, as regards the Index of Retail Prices, that the change from last June to this March—nine months—is 1.5 points, or 1.3 per cent. and, on wholesale prices, of 0.7 points or 0.5 per cent.
§ Mr. AtkinsonWould my right hon. Friend accept that, as a result of the work done in London recently, there is evidence that, for a man earning £15 per week, the cost of living went up 3½ per cent. between July, 1966, and February, 1967?
§ The Prime MinisterI have seen different estimates of different families. I was given some myself, which I am having examined, when I met representatives of the Post Office Union. But, generally, my figures represent a fair comparison between wages and prices.
§ Sir C. OsborneWould the Prime Minister look again at his official figures, as most housewives do not accept that prices have risen by only that small amount? Their experience is that they have gone up much more.
§ The Prime MinisterIt has been the experience of successive Governments that most housewives are certainly much more conscious of the prices which rise than of those which fall. Also under successive Governments, there has been complaint about the accuracy or otherwise of the cost of living index, but I think that the House as a whole will agree that it is a fair index.
§ Mr. MaxwellIs my right hon. Friend aware that the nation has received with gratitude the Government's action in getting the detergent makers to reduce their prices? What other steps have the Government in mind to force a further reduction of prices?
§ The Prime MinisterThis action followed the Report, and was in line with the recommendation, of the Monopolies Commission. I should not like to speculate about special price movements, though—voluntarily, I think, on behalf of the industries concerned—there was a significant reduction in margarine prices recently.