HC Deb 02 February 1976 vol 904 cc951-3
16. Mr. MacGregor

asked the Secretary of State for Prices and Consumer Protection what response from the local authorities she has received on her allocation of grants for the setting up of consumer advice centres.

Mr. Alan Williams

The applications that we received from local authorities considerably exceeded the total funds available for grants, and the whole of the £1.4 million available has been allocated.

Mr. MacGregor

Does the Minister think that it is a correct order of priorities to advance extra public expenditure to this programme at this time, when there will clearly be wide cuts in public expenditure programmes, including those concerned with more worthy social causes? Is he aware that there has been widespread opposition to the programme, including from consumers and housewives? Does he realise that it is widely regarded as a political sop and a gimmick? Will he give an assurance that grants will not continue beyond March 1977, and that those local authorities which take them up will have to bear the full cost thereafter?

Mr. Alan Williams

It has been indicated to the authorities concerned that they will have to bear the cost beyond that date. However, they will be receiving rate support grant, so the Government will still be carrying the major share of the cost. We believe that the development of the network of advice centres is valuable and must be seen in the context of a feed-in service of information for the Office of Fair Trading.

I am surprised that the hon. Member referred to "widespread opposition". We have had about 10 letters from members of the public. Although, the day after my announcement, Opposition Members were quoted in the Press as promising us a barrage of questions and letters, not a single letter has appeared from a Conservative Member. Apparently the fireside critics are still by their firesides.

Mr. Whitehead

Is my hon. Friend aware that the response from both the local authorities and the public to this new extension of consumer protection is most gratifying? Does he agree that much of the opposition that manifests itself in local authorities and elsewhere comes from commercial interests, which may not have any particular reason to welcome this extension of countervailing power?

Mr. Alan Williams

Inevitably some people in the retail trade misunderstand what is happening when advice centres are developed in specific areas. Our experience is that after the centres have been in operation for a short while retailers find them a valuable source of information and fair arbitrators in the event of a dispute.

Mr. Ridsdale

We despair of writing letters to the Minister, because we get so little action from the Government when we write to them. Does the Minister realise that any burden that is put upon the ratepayers—and this scheme will be such a burden—is bound to lead to severe criticism of the Government? It is for that reason that the public do not want to be wrapped up in cotton wool. They want more competition and not the kind of Socialism that we are getting.

Mr. Alan Williams

The hon. Gentleman does not seem to realise how valuable these centres are. In Croydon, in the first 12 months, a centre recouped about £35,000 in compensation for consumers. In Aberdare, a small centre recouped about £15,000 in eight months. In Yorkshire, consumer offices have recouped over £100,000 on behalf of consumers. The hon. Member should not, therefore, suggest that we are providing cotton wool. We are obviously providing a necessary service to consumers.

Mr. Cryer

Is my hon. Friend aware that the £1.4 million will be extremely well spent? It represented part of Labour's programme in 1973, when we said that we would provide local offices to which consumers could turn when they were being cheated or deceived by retailers. Is it possible for the Government urgently to consider increasing the £1.4 million, so that every town with a population of, say, more than 50,000 would be included—not excluding places like Keighley?

Mr. Alan Williams

Naturally, we should like to extend the scheme even further. I take note of my hon. Friend's pleading for his own constituency. However, I should be misleading the House if I suggested that more funds would be available at this stage. Later, however, we hope to build further upon this network.