§ 32. Mr. Kenneth Bakerasked the Secretary of State for Trade and Industry when he intends to refer the pricing policy of a nationalised industry to the Monopolies Commission.
§ Mr. John DaviesAs I told the House on 17th December, I shall be ready to seek information and assistance from the Commission on the operations of the nationalised industries, in appropriate cases. But I have no present plans to do so in respect of their pricing policy.
§ Mr. BakerDoes my right hon. Friend agree that it is an abuse of the monopoly powers of nationalised industries such as the Post Office and the railways to grant inflationary wage demands which can be met only by imposing increased prices on the consumer, and that many hon. Members would welcome the reference of such increases to the Commission?
§ Mr. DaviesMy hon. Friend will realise that references to the Commission in relation to the nationalised industries must be on a strictly voluntary basis for the time being. I fully appreciate the danger of granting inflationary wage increases and their impact on price levels.
§ Mr. PalmerIs the right hon. Gentleman aware that it has been stated that he is interfering actively with the pricing policies of the electricity boards? In the circumstances, is it necessary for any price increases to go to the Monopolies Commission?
§ Mr. DaviesInterference is a matter of interpretation. The Chairman of the Electricity Council is good enough to consult me, and certainly I take that consultation very seriously. However, I would hardly call that interference. I prefer to call it taking a reasonable interest in the welfare of a very important industry.
§ Mr. Michael FootDoes the right hon. Gentleman agree that there is no need for intervention in any proposed price increase in a nationalised industry since the whole question was dealt with "at a stroke"?
§ Mr. DaviesTaking that question seriously, I believe that it is necessary for 22 there to be consultation and an under standing between the industries and the Minister responsible.