HC Deb 08 December 1975 vol 902 cc14-6
8. Mr. Neubert

asked the Secretary of State for Prices and Consumer Protection whether she intends to make any changes to the Price Code.

16. Mr. Canavan

asked the Secretary of State for Prices and Consumer Protection whether she will make a statement about possible amendments to the Price Code.

21. Mr. Arnold

asked the Secretary of State for Prices and Consumer Protection whether she will take steps further to extend and increase investment relief under the Price Code.

Mrs. Shirley Williams

It is not my intention to make fundamental changes in the Price Code controls before the end of the current phase of the counter-inflation policy, next July. Certain technical amendments will be necessary to ensure that investment relief is available between April and July 1976 and to back up the price restraint scheme.

Mr. Neubert

With the current record levels of unemployment, does the right hon. Lady realise that to those who understood that profits are central to investment and that investment is central to jobs, that reply is gravely disappointing? Is she going back on the undertaking announced by the Chancellor of the Exchequer, at Chequers, that he would consider relaxing the Price Code to facilitate investment? When will the Cabinet have the collective courage to abandon this policy, which is slowly bankrupting business?

Mrs. Shirley Williams

The position has been consistently explained by the Government over many weeks. I refer the hon. Gentleman to my statement in the House on 16th October, to the November debate, and to this Question. There has been no change whatsoever in this policy. It has been unhelpful that some people have suggested there may have been a change.

With regard to the second part of the supplementary question, there has been a slight improvement in margins over the last three months, as is indicated in the Price Commission's report for the second quarter, and I have no reason to think that that slight improvement has been altered in the last three weeks.

Mr. Canavan

Does the Minister agree that ordinary working people are crying out for stricter price control, as they can barely maintain their living standards? Is she aware that big business is crying out for a relaxation of price controls in order that it may boost its profits, which are not always utilised for investment purposes? In this context, will the right hon. Lady state which side she is on? Will she give an assurance that she will not buckle to CBI pressure to relax the Price Code, especially at a time when workers' wages are strictly controlled?

Mrs. Shirley Williams

I have made it clear that there can be no possibility of a relaxation in price controls, especially during the period of our counter-inflation policy. I have indicated before now that when we are in a position to move on—as I hope we shall be—to an improvement in growth and employment, we shall have to see how the Price Code can be altered to allow such investment to take place. I remind hon. Members that it was the present Government who allowed the recent investment relief.

Mr. Fletcher-Cooke

Has the right hon. Lady noticed a report, which came out today, on the paper and board industry, which shows a frightening situation in terms of investment and employment prospects? When she talks about technical easements which are coming at some time in the new year, will she say whether those technical easements will help the paper and board industry?

Mrs. Shirley Williams

I should require rather longer notice of that question. I have not yet seen the report. The industry, which is a heavy investor, should benefit from the extension of investment relief.

Mr. Norman Lamonts

Has the right hon. Lady abandoned the idea of increasing the three-months pre-notification period?

Mrs. Shirley Williams

No, I have not done so. I have made it clear that if we cannot negotiate a satisfactory price restraint scheme we shall have to consider the question of the three months' gap. I hope that that will not be necessary.