Prices

HC Deb 04 December 1972 vol 847 cc882-4

5. Mr. William Price

asked the Secretary of State for Trade and Industry how many people have complained to his Department about price increases since the freeze was introduced.

11. Mr. Sydney Chapman

asked the Secretary of State for Trade and Industry how many representations have been made to his Department's special prices unit since 6th November; and if he will make a statement on the action the Government has taken.

Sir G. Howe

My Department had received 25,000 inquiries, including 4,660 complaints, by the end of the last week. The action taken depended on the nature of the inquiry.

Mr. Price

Is it not clear from those figures that the Government's prices freeze is at best a joke and at worst an outright fraud? Is it not apparent that, between now and Christmas, there will be massive price increases and that the only effect of the Government's policies will be to reduce the amount of money in the pockets of working people?

Sir G. Howe

The effect is quite the contrary of what the hon. Gentleman suggests. The great bulk of the inquiries have been from those in trade and industry, seeking advice on what they must do to comply with the standstill. I cannot emphasise too strongly the extent to which that co-operation is forthcoming. Enterprises supplying a variety of goods have been reducing prices as a result of the complaints and inquiries made.

Mr. Chapman

I appreciate the measures that the Government have taken since these two Questions were put down. Would not my right hon. and learned Friend agree that there is a continuing need to inform the public of how and where to make representations if they feel that they have complaints about price increases?

Sir G. Howe

My hon. Friend will appreciate that the public have been continuously informed, by Press advertisements and in other ways, of the telephone numbers and addresses to which they can make representations, regionally as well as in London, and a substantial proportion of the representations have been made regionally and not in London.

Mr. Milne

Will the right hon. and learned Gentleman take note of the massive increases being imposed on holidaymakers by the travel and holiday firms, and in particular of the fact that the bulk of these holidays will be booked during the freeze although the holidays themselves will be taken later? Will he examine this point?

Sir G. Howe

That is one of the points already under examination.

Mr. Goodhart

Is it not plain that angry housewives would do much better to telephone their local weights and measures inspectorate rather than try to get through to a London number which is often engaged?

Sir G. Howe

They can obtain a number locally, quite apart from the number in London. The rôle of weights and measures inspectors is something that one must consider, remembering that they have substantial duties laid on them under other statutes.

Mr. Alan Williams

The telephone complaints procedure is now seen as what it always was—an empty public relations gimmick. Does the Minister realise that what is so worrying about the present situation is the question of how on earth, if the Government's price vetting system is so inept at present, it will cope with the national price rise chaos in April as a result of the Government's own value added tax? If the Government doubt that this will be the case, I would invite the Minister to look at the exposé in yesterday's Sunday Times of the actions—

Mr. Speaker

Order. This is Question Time.

Mr. Williams

And this is an important question, Sir.

Mr. Speaker

Then the hon. Member must ask a question: he must not make a statement.

Mr. Williams

I invited the Minister to look at a report in yesterday's Sunday Times. Will he comment upon the advice that has been given by Wall's, a member of the vast Unilever group, on how to make profit out of the value added tax?

Sir G. Howe

On the last point, that report is one that I have read. It is plain that there is no justification for a straight 10 per cent. increase in existing prices, and there will not be, even when VAT is introduced. I repudiate the suggestion that there will be anything like chaos when we come to that point. Advice will be given in relation to a number of matters as to what should be done to maintain price levels properly at that stage.

I entirely reject the suggestion that the system of telephone complaints and inquiries is unacceptable or is not working. As I have said, enterprises supplying a whole range of products have been reducing prices ranging from things like carpets and knitting wools on the one hand to shoes and hotel accommodation on the other.

Mrs. Renée Short

What about food prices?

Sir G. Howe

When that is supported by the overwhelming voluntary support for the policy which is manifestly forthcoming, there is every reason to believe that it is successful.