§ 16. Mr. Dodsworthasked the Secretary of State for Prices and Consumer Protection if she will make a statement on the consequences for the Price Code of the report of the Sandilands Committee on inflation accounting.
§ Mrs. Shirley WilliamsThe Sandilands Committee has recommended that, if its proposals for the adoption of current cost accounting are accepted, CCA should become the accounting basis of the Government's price control policy. The 1020 Government are studying the committee's findings, and a statement will be made early in the new Session giving the Government's views on the main recommendations of the report.
§ Mr. DodsworthDoes the right hon. Lady agree that the apparent interpretation of the Sandilands Report is that profit levels are insufficient to support the levels of investment required, and that that suggests that there should be an urgent review of the investment relief contained in the Price Code?
§ Mrs. Shirley WilliamsThe hon. Gentleman will appreciate that the committee made no judgments on the question whether the Price Code would bite harder or less hard if CCA were introduced. It is fair to say that the Committee proposed a starting date of 1977. The hon. Gentleman will appreciate that in any case the present Price Code does not have legislative authority to continue beyond that date. I suggest that the time to discuss the report is over the next few months.
§ Mr. Ioan EvansWill my right hon. Friend consider the suggestion by the Sandilands Committee that the system of capital allowances be extended to include commercial buildings, without waiting for a general review of the whole basis of company taxation?
§ Mrs. Shirley WilliamsI take my hon. Friend's proposal on board. We are anxious to do anything that will encourage employment. It was much for that reason that we included distribution warehouses and commercial vehicles in our last review of the Price Code. We shall bear my hon. Friend's suggestion in mind.
§ Mr. Giles ShawIn view of the right hon. Lady's recent statement in the House that she did not foresee any changes to the code prior to July 1976, will she review the position if the Government decide to make changes by implementing the Sandilands Report? It would appear to be highly desirable that the Price Code changes should precede the adoption of the recommendations of that report.
§ Mrs. Shirley WilliamsI am sure the hon. Gentleman appreciates that constant tinkering with the Price Code in a period of counter-inflation policy, which itself 1021 has a final date on it, is perhaps not the wisest way to go about concentrating the country's attention. However, it is fair to say that we are already committed to considering the whole matter by the summer of next year.