Confectionery and Toilet Preparations (Price Increases)

HC Deb 22 May 1969 vol 784 cc648-9

29. Mr. Molloy

asked the Secretary of State for Employment and Productivity if she is aware of the recent increases in prices of confectionery and toiletries; and if she will now refer these prices to the National Board for Prices and Incomes.

Mr. Hattersley

The N.B.P.I. reported in July, 1968, on costs and prices in the chocolate and sugar confectionery industries, and I understand that price increases introduced since that report have been consistent with the Board's recommendations. Manufacturers' prices of toilet preparations were referred to the N.B.P.I. in December, 1968, and the Board's report is expected shortly.

Mr. Molloy

Is my hon. Friend aware that over the past six months there has been a persistent increase in prices of the items mentioned in my Question? Is he further aware that this is causing annoyance to ordinary housewives, who do not know when it will stop? Does he realise that they think, because of the prices and incomes policy, that someone is cheating somewhere? Will my right hon. Friend conduct an inquiry into the increases mentioned in the Question, and make a full statement as quickly as possible?

Mr. Hattersley

The facts to which my hon. Friend refers are four price increases in chocolates and sugar confectionery, all of which are consistent with the N.B.P.I. inquiry into the industry, and all of which stem basically from increases in the cost of raw materials. One of the price increases, I am sure my hon. Friend will be interested to know, was modified as a result of Government intervention.

Sir G. Nabarro

Is it not a fact that the principal constituents in the increased costs of these articles, toiletries and confectioneries, are the practices of the Chancellor, which have more than doubled purchase tax on certain toiletries and greatly increased purchase tax on all the articles referred to?

Mr. Hattersley

Certainly purchase tax and devaluation have had an effect. Those things were told frankly to the House in the prices policy and that is one of the reasons why we have run a prices policy which has been so much derided by the hon. Gentleman and his hon. Friends.