HC Deb 17 March 1975 vol 888 cc1113-5
2. Mr. Biffen

asked the Secretary of State for Prices and Consumer Protection by what amounts the Price Code has restrained corporate profits, investment, and the retail price index, respectively.

The Secretary of State for Prices and Consumer Protection (Mrs. Shirley Williams)

No reliable estimates are available. Many factors in addition to the Price Code influence prices, profits and investment.

Mr. Biffen

Is the Secretary of State aware that although reliable estimates may not be available for the factors referred to in the Question there is no doubt that the bureaucracy of the Price Code presents a very onerous burden for business? Will she therefore indicate that it will continue to be her policy to relax the code with, one hopes, the prospect of an early termination?

Mrs. Shirley Williams

I believe that the Price Commission does everything in its power to meet legitimate points that firms make about the administrative burden. The Price Code was provided with certain relief in order to encourage investment and employment, and that will always be the first and guiding principle of the Government towards the code.

Mr. Gwilym Roberts

Does my right hon. Friend not agree that the Price Code and food subsidies, much derided by the Opposition, have made some marginal impact in reducing price increases? Does she not conclude, from the many Questions tabled on this subject by Conservative Members, that the Opposition seem to have a vested interest in inflation?

Mrs. Shirley Williams

The Price Code was originally introduced by the Conservative Government, presumably because they believed it would have a considerable effect on inflation. I believe that the Price Code and subsidies together have averted a substantial element in containing the inflationary curve.

Mr. Giles Shaw

The previous Conservative Government introduced the Price Code but they also introduced measures on wage restraint. Under present circumstances is rot industry's problem of passing on labour costs one of the main reasons for its lack of profitability?

Mrs. Shirley Williams

Under the previous administration there were thresholds which affected some firms, not least those not a mile away from the hon. Member. Where there have been increases in labour costs this fact has been reflected to some extent in the productivity deduction.