§ 20. Mr. Hooleyasked the Secretary of State for Prices and Consumer Protection what steps are taken by her Department to monitor international commodity prices so as to ensure that falls as well as increases in raw material prices are reflected in retail prices in the shops.
§ Mr. MaclennanCommodity prices are regularly monitored by my Department. The Price Commission keeps its own records, and price indices for different commodities are published in "Trade and Industry". Under the Price Code, falls in raw materials or other costs should be reflected in prices. The Price Commission has taken steps to remind firms of their obligations under the code. My right hon. Friend has asked the Price Commission to study the effect of movements in the price of raw materials on the retail price of goods in the shops.
§ Mr. HooleyI am grateful to my hon. Friend for that information, which is extremely important. Is he satisfied that the fall in commodity prices—which has been considerable over the past 18 months—is adequately reflected in the prices in the shops?
§ Mr. MaclennanI am satisfied that we have taken all possible steps open to us to ensure that it is reflected, but if my hon. Friend or any other hon. Member wishes to bring to notice goods or services the price of which he considers should be reduced because of any fall in commodity prices, he should refer the matter directly to the Price Commission for examination.
§ Mr. Wyn RobertsWhat steps are the Government taking in anticipation of the increase in commodity prices expected when the recovery in world trade begins?
§ Mr. MaclennanThe measures I have already indicated, and the fact that my Department is engaged in monitoring world prices, should enable us to respond quickly to any such increase as may occur. The hon. Gentleman may be aware, from its report, that the Bank of England is also engaged in considering the operations of the commodity markets.