HC Deb 03 February 1972 vol 830 cc647-8
1. Mr. O'Halloran

asked the Secretary of State for Employment what effect he estimates the Confederation of British Industry initiative has had on the level of prices in the Greater London area; and if he will make a statement.

The Minister of State, Department of Employment (Mr. Paul Bryan)

I regret that it is not possible to estimate the effect of the C.B.I. initiative on its own. However, I have no doubt that it has contributed significantly to the slowing down in the rate of increase in the cost of living since 22nd June, 1971.

Mr. O'Halloran

Does not the Minister realise that the cost of living in London is much higher than it is in any other part of the country, and that house prices, land prices and rents are particularly high? Will he suggest to his right hon. Friend a special London allowance for old-age pensioners to alleviate the hardship caused by this high cost of living?

Mr. Bryan

I appreciate the sentiments behind the hon. Gentleman's suggestion, but it would be extremely difficult to do. As he probably knows, a committee has been sitting to consider the subject of a regional price index, and the results of that committee are now being considered.

Mr. Redmond

In view of what my hon. Friend has said about the rate of price increases slowing down, would it not be useful for the T.U.C. to start a wages initiative following the C.B.I. prices initiative?

Mr. Bryan

Again that sounds a good idea, and if it were as successful as the C.B.I. initiative has been it would be of great advantage to the country. One has to realise that Government policy, for instance, on purchase tax and S.E.T., has had a good deal to do with the way in which the rate of rise in prices has dropped, as also has the moderation in wage increases.

Mr. Stallard

Will the Minister accept from me that his reply will convince few of my constituents in North St. Pancras, where the cost of housing has risen at an astronomical rate in the past few months? Is he aware that a house which a few years ago would have been difficult to get rid of at £2,500 was recently advertised for £30,000? How can he say that this initiative has had any real effect on the cost of living and prices generally in central London?

Mr. Bryan

I quite agree with the hon. Gentleman that the price of houses is a worrying factor, but the Question was about the general rise in prices and I think my answer adequately deals with it.

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