Prices (Hansard, 8 February 1971)

§ 1. Mr. Molloy
asked the Secretary of State for Trade and Industry what measures he now proposes taking in view of the accelerated rise in prices during recent months.

§ The Secretary of State for Trade and Industry and President of the Board of Trade (Mr. John Davies)
We shall continue to encourage competition and to impress on the public the fact that inflationary wage settlements make price increases inevi.

§ Mr. Molloy
But is the right hon. Gentleman aware that the Government's conspicuous incapacity to hold prices, or to deal with any other public issue, is causing grave concern in the country, and that the ever-rising cost of living is having a serious effect on the low-income groups and the disabled, and is he aware that 2 there is also grave apprehension because of the—

§ Mr. Speaker
Order. There are 103 Questions today to the Secretary of State for Trade and Industry, and I should like hon. Members to limit themselves to one supplementary question each on any Question. The hon. Member has already asked two.

§ Mr. Molloy
I was going to ask the Secretary of State whether he would give consideration to a temporary freeze on prices over decimalisation day.

§ Mr. Davies
No, we do not contemplate a freeze on prices. As to the general question raised by the hon. Gentleman, attention should be drawn to the rate of increase in earnings, which is two-and-a-half times that of prices, and which is having great effect on price levels.

§ Mr. Mason
But is the right hon. Gentleman aware that in recent months there have been rising prices for spirits, beer, cigarettes, petrol and food, and that with decimalisation day there is likely to be more rounding up than rounding down, which will necessitate more increases, and that food prices will rise by another 2 per cent. according to the Minister of Agriculture during this year and that our devaluation advantage is being rapidly eroded, and that this is a high price to pay for our entry into the European Economic Community? Is the right hon. Gentleman not concerned about that, and should he not attack prices instead—

§ Mr. Speaker
Order. It is making Question Time intolerable if we are to have speeches and whole series of supplementary questions. I have received many complaints that we are not getting through enough Questions. There are 103 to the Secretary of State today, and I must ask Front Bench spokesmen as well as back-bench Members to obey the rules.

§ Mr. Davies
The more reason, therefore, for all parties to join together in trying to restrain the most compulsive effect on price levels, and that is the level of wages.