§ 17. Mr. Townsendasked the Secretary of State for Prices and Consumer Protection whether she is satisfied that the movement of import prices during the relevant period will not prejudice the Selective Price Restraint Scheme.
§ Mrs. Shirley WilliamsThe White Paper made it clear that agreement on the Selective Price Restraint Scheme would be
subject to unforeseen increases in the costs of materials".But the expected trends of world demand suggest that this should not be a major problem while the scheme is operating.
§ Mr. TownsendIs the Secretary of State aware that 15 months wasted on the "invisible" so-called social contract and the resulting loss of confidence in the British economy have gravely weakened the pound and that, partly as a result, the imported price of raw materials rose by 3¾ per cent. in October? Is it not likely that these price increases will be working their way through the economy just as the right hon. Lady is trying to get her scheme off the ground?
§ Mrs. Shirley WilliamsThe hon. Gentleman seems conveniently to have forgotten the extreme speed with which inflation occurred under the administration in which his party led the country two years ago. I shall reply to the Question on the Order Paper by saying that steps have already been taken to make sure that there will be an exemption clause if the price of a particular item unexpectedly rises in such a way as to make it impossible to bring it within the Price Restraint Scheme.