HC Deb 01 April 1974 vol 871 cc857-60
10. Mrs Renée Short

asked the Secretary of State for Prices and Consumer Protection how many food prices have increased since 28th February.

Mr. Maclennan

The food index is the official measure of movements in retail

culate in the OFFICIAL REPORT, does not the hon. Gentleman conclude that food prices in Britain since we joined the Common Market rose five times as much as food prices in those EFTA countries which did not join with us? Does he agree, therefore, that it would be better for prices and for consumers in this country if we were members of the European Free Trade Area rather than the Common Market?

Mr. Maclennan

In reply to the first part of the question, the hon. Member has asked for a number of figures, which is why they will be circulated in the OFFICIAL REPORT. They show that the percentage increase in the United Kingdom was exceeded only by Iceland. The hon. Member draws the wrong conclusion, however, if he argues that the increases are due to membership of the EEC. This country was more seriously affected by the rise in world commodity prices in the last 18 months than were some other countries which already paid more for their food.

Mr. Body

Does the Minister realise that in proportion Norway and Switzerland import just as much food as we do?

Mr. Maclennan

The prices in those countries were higher than in Britain before we entered the Common Market.

Following is the information:

food prices. Information for the period since 28th February is not yet available.

Mrs. Short

If my hon. Friend would read The Grocer, which his predecessors never would when we asked the same questions of them, we could be given the figure. Is he aware that in the first quarter of this year more than 6,500 separate food price rises have occurred, all of which were in the pipeline during the period of the previous administration': Is he aware that not only retailers and wholesalers have a responsibility to make their contribution to the reduction of food prices? So, too, have manufacturers, as my hon. Friend the Member for Watford (Mr. Tuck) has indicated. Will my hon. Friend ensure that they play their part and ensure also that retailers display the maximum prices for foods so that housewives will know exactly where they stand? Does he not think that an across-the-board moratorium on all increases for the next quarter would help the housewife considerably?

Mr. Maclennan

I study The Grocer with interest. However, the number of increases notified to it tends to distort the true position since each quality or weight of the same product is counted as a separate increase. As for the other points my hon. Friend has raised, I ask her to await publication of my right hon. Friend's Bill.

Mr. Rost

How many food prices will increase as a result of the imposition of VAT on food?

Mr. Maclennan

That is a separate question.

11. Mr. Skinner

asked the Secretary of State for Prices and Consumer Protection what has been the percentage increase in food prices since June 1970 to the latest available date.

Mr. Maclennan

Between 16th June 1970 and 19th February 1974, the latest date for which information is available, the food index rose by 54.4 per cent.

Mr. Skinner

In view of those extortionate figures, which are the responsibility of the last administration, will my hon. Friend tell my right hon. Friend the Secretary of State that when she meets the former Tory Chief Whip, Lord Redmayne, and his colleagues tomorrow she should not take too much notice of their sad stories about the profit margins that wholesalers and retailers are having to suffer? Will my hon. Friend say whether food subsidies are more progressive than subsidies for private education and private hospital beds?

Mr. Maclennan

My right hon. Friend the Secretary of State will have heard my hon. Friend's remarks about the meeting with Lord Redmayne. The second point my hon. Friend makes is a fair one and I accept it.

Mr. Gordon Wilson

Will the hon. Gentleman comment on the fact that dried milk for babies has gone up in price recently by 25 per cent. and will he indicate what action is intended either to reduce the price or to keep it in check?

Mr. Maclennan

The hon. Member has asked a totally separate question which I must ask him to table.

Mr. Tom Boardman

Will the Minister say by how much comparable world food prices rose during the same period?

Mr. Maclennan

The hon. Member has asked a separate question. The original Question related to the percentage increase in food prices from July 1970 to the present day. If he wants detailed information beyond that, he must table a separate Question. On the general point, my right hon. Friend has never for one moment sought to conceal, and repeatedly made clear during the recent election which the hon. Member appears still to be fighting, the extent of the increase in world prices. The previous Government could have done substantially more to lessen the impact of those higher prices to consumers.