§ 25. Mr. Cormackasked the Secretary of State for Trade and Industry how many 24 price increases have been authorised since 1st January; and what has been their effect on the cost-of-living index.
§ The Minister for Trade and Consumer Affairs (Sir Geoffrey Howe)Between 1st January and 28th April I reached agreements covering six sectors of manufacturing industry and taking account of increases in the cost of certain imported raw materials; and also three service industries. I am arranging for a full list to be published in the OFFICIAL REPORT. I also authorised price increases by 132 individual firms on grounds of financial difficulties.
In the three months to mid-March, the index of retail prices for non-food items rose by 0.6 per cent.
§ Mr. CormackI thank my right hon. and learned Friend for that reply. Does it not indicate a substantial and significant slowing down in the rate of increase over the comparable period of last year?
§ Sir G. HoweThat is indeed the position, Sir.
§ Mr. Alan WilliamsDoes the Minister realise that not only have restaurants fleeced the public since the introduction of VAT but that since September last year the price of many items of clothing has risen at an annual rate of more than 50 per cent? Is he further aware that the clothing manufacturers have treated phase 1 and phase 2 with absolute contempt, using minor changes in style to get round any pretence of price restraint?
§ Sir G. HoweThe hon. Gentleman states a case that is without foundation characteristically in extreme terms. The clothing industry, with other industries, has co-operated at all levels in the observation of the standstill, which is what the Question relates to. The figures I have given are those which emerge in relation to non-food manufactured products at 0.6 percent. over three months. It is worth remembering that the clothing industry has had to bear probably more than any other industry significantly high increases in the cost of raw materials.
§ Mr. WilliamsThe Minister said that my case was without substance, but I have here a list which has been provided 25 to me showing articles the prices of which have gone up in that period by the amount I have slated. Would he like to see it?
§ Sir G. HoweI am certainly willing to look at any lists in evidence which the hon. Gentleman wishes to give me. The general position is precisely as I
| RAW MATERIAL PRICE INCREASE AGREEMENTS SINCE 1ST JANUARY 1973 | |
| Trade Association | Minimum degree of absorption of price increases since 6th November 1972 (unless otherwise stated) |
| Non-Ferrous Metals | |
| Light Metal Founders Association | 20 per cent, of increased secondary aluminium ingots cost. |
| Zinc Alloy Die Casters Association | 55 per cent, of increased zinc alloy cost which took place on 30th November 1972. |
| Association of Bronze and Brass Founders | 5 per cent, of increased copper alloy Ingots cost since 7th March 1973. |
| National Brass Foundry Association | |
| Copper Cylinder and Boiler Manufacturers | 20 per cent, of increased copper metal content cost. |
| Johnson, Matthey & Co. Ltd | 10 per cent, of increased palladium cost up to 23rd November 1972. |
| Englehard Industries | |
| British Joint Association of Goldsmiths, Silver-smiths, Horological and Kindred Trades (Known as British Jewellers Association). | 58 per cent, of increased silver cost between 1st September 1972 and 12th February 1973. |
| As sociation of British Pewter Craftsmen | 40 per cent, of increased raw materials cost since 22nd January 1973. |
| Galvanisers' Association | 70 per cent, of increased zinc cost since 9th February 1973. |
| National Brass Foundry Association | 50 per cent, of increased brass rod and gunmetal ingot cost. |
| British Valve Manufacturers' Association | 55 per cent, of increased semi-finished copper alloy components cost. |
| Fire Extinguishing Trades Association | 50–70 per cent, of increased semi-finished copper alloy component cost. |
| British Joint Association of Goldsmiths, Silver-smiths, Horological and Kindred Trades (Knownas British Jewellers Association). | 10 per cent, and 30 per cent, of increased gold cost, |
| Woven Wire Association | 50 per cent, of increased copper alloy cost in woven wire gauze. |
| Small Rivet Association | 35 per cent, of increased copper and copper alloy cost for rivets. |
| Association of Builders Hardware Manufacturers | 70 per cent, of increased aluminium, brass and bronze costs for all items of builders and architectural hardware (except hinges, 50 per cent.). |
| Copper Tube Fittings Manufacturers' Association | 50 per cent, of increased copper and copper alloy cost. |
| British Jewellers Association | 50 per cent, of increased silver, copper and brass cost for electro-plated products. |
| The Art Metalware Manufacturers' Association | 50 per cent, and 70 per cent, of increased copper and brass costs respectively. |
| Chemicals | |
| Association of Fatty Acid Distillers | 25 per cent, of increased tallow cost up to 19th February 1973. |
| Soap and Detergent Industry Association | 10 per cent, of increased cost of castor oil and fish acid oil up to 7th February 1973. |
| Chemical Industries Association | 30 per cent, of increased stearic acid cost for commercial stearates. |
| The Paintmakers Association of Great Britain Limited. | 50 per cent, of increased shellac cost for shellac based products up to 31st January 1973. |
| The Spirit, Varnish and Shellac Solutions Section of the London Chamber of Commerce. | |
| The National Sulphuric Acid Association | 50 per cent, of increased sulphur cost. |
| Zinc Pigment Development Association | 10 per cent, of increased zinc metal cost. |
§ have stated it. The industries in relation to which increases have been permitted are those for which details will be circulated in the OFFICIAL REPORT. The resultant figure is 0.6 per cent, during the three months in relation to non-food manufactured products.
§ Following is the list:
27| Trade Association | Minimum degree of absorption of price increases since 6th November 1972 (unless otherwise stated) |
| Chemicals—cont. | |
| British Rubber Manufacturers' Association | 50 per cent. of increased natural rubber cost for mouldings. |
| 30 per cent. of increased natural rubber cost for rubber to metal bondings and extrusions. | |
| 10 per cent. of increased natural rubber cost for compounds. | |
| Adhesives Manufacturers Association | 30 per cent. of increased starch and dextrine cost for potato and maize based products. |
| The Federation of Gelatine and Glue Manufacturers' Limited | 50 per cent. of increased bones and hides cost since 1st July 1972 for gelatine. |
| British Resin Manufacturers' Association | 30 per cent. of increased castor oil cost for alkyd resins. |
| Paintmakers Association of Great Britain Limited | 30 per cent. of increased castor oil cost for alkyd resins. |
| 70 per cent. of increased alkyd resins cost for paints. | |
| Gauge and Tool Makers Association | Industrial diamonds in diamond tipped tools. There are five types; the diamond cost absorption in four cases is 70 per cent. and 50 per cent in one. |
| Textiles and Carpets | |
| Federation of British Carpet Manufacturers | 50 per cent. of increased raw wool cost up to 22nd December 1972. |
| Tufted Carpet Manufacturers Association | 30 per cent. of increased raw wool cost up to 22nd December 1972. |
| Needleloom Felt Manufacturers Association | 50 per cent. of increased raw materials cost between 14th September and end of December 1972. |
| Pressed Felt Manufacturers Association | 30 per cent. of increased raw materials cost between last established price and 5th January 1973. |
| Wool Textile Industry Associations | Topmakers, spinners of woollen and worsted yarn and hand-knit yarns, 5 per cent. of raw wool increased cost up to 26th January 1973. |
| Weavers, 10 per cent. of raw wool increased cost up to 16th February 1973. | |
| Knitting Industries' Federation Ltd. | 10 per cent. of increased raw materials cost between last established price and 6th November 1972. |
| Scottish Knitwear Council | |
| British Textile Employers Association | Spinners, 40-100 per cent. of increased raw cotton cost, where cotton has increased by 10 per cent. |
| Doublers, 40 per cent. of any increased raw cotton cost passed on to them. | |
| Weavers, 50 per cent. of increased yarn prices resulting from increased raw cotton cost. | |
| Central Council of the Linen Industry | 50 per cent. of increased flax tow and line costs since last established price. |
| Flax Spinners amd Manufacturers Association of Great Britain. | |
| Belfast Ropes | 58 per cent. of increased sisal cost for sisal packing twines and ropes and 52 per cent. for sisal agricultural twine between last established price and 7th February 1973. |
| British Ropes | |
| Hawkins & Tipson | |
| Narrow Fabrics Federation | 50 per cent. of increased yarn prices resulting from increased raw cotton cost. |
| Warp Knitters Association | |
| Clothing Manufacturers'Association | 20 per cent. of the increased wool and fine animal hair cloth costs from the ruling price in force immediately prior to 6th November 1972 for men's woollen outerwear woven garments. |
| 20 per cent. of increased leather and suede (excluding sheepskin) costs above the ruling price in force immediately prior to 6th November 1972 for leather and suede clothing. | |
| Clorhine Manufacturers' Federation | 30 per cent. of increased imported woven cotton and polyester/cotton cloth costs since the ruling price wear and jeans). |
| Overall Manufacturers' Association | |
| Knitting Industries' Federation Ltd | 50 per cent. of increased cotton yarn cost, passed on by spinners, up to 31st December 1972. |
| Scottish Knitwear Council | |
| National Filling Trades Association | 30 per cent. of increased raw material cost for woollen felts. |
| 50 per cent. of increased raw material cost for cotton felt. |
| Trade Association | Minimum degree of absorption of price increases since 6th November 1972 (unless otherwise stated) |
| Paper and Timber | |
| British Paper and Board Makers Federation | 30–70 per cent. depending on imported fibre content of increased raw material cost between 1st January 1972 and 15th January 1973. |
| Reed Paper & Board (U.K.) Ltd | Between 59 and 72 per cent, of increased raw material cost since 1st January 1972. |
| The Bowater Corporation Ltd | |
| C. Townsend Hook & Co. Ltd | |
| Peter Dixon & Son (Holdings) Ltd | |
| British Federation of Master Printers | Between 25 and 50 per cent. of increased paper cost. |
| British Gummed Products Manufacturers Association. | 50 per cent. of increased cost of gummed paper and tapes between 1st November 1972 and 29th January 1973. |
| British Carton Association | 50 per cent. of increased raw material cost between 23rd June 1972 and 29th January 1973. |
| British Paper Bag Federation | 30 per cent. of increased raw material cost for kraft between 1st November 1972 and for greaseproof between 1st January 1973 and 29th January 1973. |
| Flexible Packaging Association | 30 per cent. of increased raw material cost for waterproof paper only between 22nd January and 11th April 1973. |
| Timber Packaging and Pallet Confederation | 30 per cent. of increased raw material cost between 1st August 1972 and 22nd January 1973. |
| Truck and Ladder Manufacturers Association | 50 per cent. of increased timber cost between 1st February 1972 and 14th February 1973. |
| Chair Frame Manufacturers Association | 50 per cent. of increased timber cost up to 20th February 1973. |
| Paper Sack Development Association Ltd. | 30 per cent. of increased raw material cost between 1st September 1972 for fixed price contracts, and between 1st January 1973 for general sales, and 1st February 1973. |
| British Furniture Manufacturers' Federated Association. | Average of 70 per cent. in increased raw material cost between 1st September and 31st December 1972 (for cabinet furniture only). |
| British Brush Manufacturers Association | 25 per cent. of increased natural raw materials cost between last established price and 6th November 1972. |
| 20 per cent. of increased sheepskin costs for sheepskin paint rollers since last established price. | |
| British Paper Bag Federation | 30 per cent. of increased sulphite cost. |
| British Disposable Products Association | 50 per cent. and 70 per cent. of increased raw material cost for paper napkins and paper cups respectively. |
| Leather and Footwear | |
| British Leather Federation | 20 per cent. of increased cost of hides and skins. |
| British Leathergoods Manufacturers Association | 20 per cent. of increased leather cost between last established price and 6th November 1972. |
| British Footwear Federation | |
| National Association of Glove Manufacturers | Dress gloves 20 per cent. and industrial gloves 22½ per cent. of increased leather costs between last established price and 6th November 1972. |
| SERVICE INDUSTRY PRICE INCREASE AGREEMENTS | |
| Trade Association | Minimum degree of absorption of price increases since 6th November 1972 (unless otherwise stated) |
| Laundries | Price increases from 1st January 1973 to recover Wages Council award of mid-November, limited to 3 per cent. on total receipts. |
| Incorporated Guild of Hairdressers, Wigmakers and Perfumers | Price increases to recover not more than 50 per cent. of the wage costs directly resulting from the Wages Council award which took effect from 1st January 1973. |
| National Hairdressers Federation | |
| Association of British Travel Agents | Imposition of a surcharge on package holidays abroad or increase in an existing surcharge to cover changes in costs since 6th November 1972 directly resulting from exchange rate fluctuations or cost increases overseas beyond the operator's control. |