HC Deb 02 February 1976 vol 904 cc946-8
9. Mr. Canavan

asked the Secretary of State for Prices and Consumer Protection what action she proposes to take to halt recent increases in the price of food.

Mr. Maclennan

As my right hon. Friend announced in the House on 27th January, the selective price restraint scheme for the retail sector will come into operation on 16th February. An important feature of the scheme is the inclusion of certain food items on which price increases will be limited to 5 per cent. over six months.

Mr. Canavan

Will my hon. Friend explain in some detail the reference by my right hon. Friend, in her statement on the price restraint scheme, to safeguards on the part of particular firms, allowing them the possibility of withdrawing from the scheme? Why cannot the 5 per cent. ceiling, particularly on basic foodstuffs, be rigorously imposed, especially at a time when workers are having a rigid ceiling imposed on their wage increases?

Mr. Maclennan

My hon. Friend understands these matters well and he will appreciate that were we not to permit the substantial cost increases borne by industry to be reflected in price increases it would greatly exacerbate the present unacceptable level of unemployment. The food industry has felt able to bring forward a substantial number of important items which will fall within the scheme. We do not expect that there will be any need for withdrawals in respect of those items, or in respect of the general undertaking on fresh foods that certain items will be the subject of rotating promotions.

Mrs. Sally Oppenheim

The Minister has already said that overcoming inflation depends on the Government's counter-inflation policy. Does he not agree that it also depends on strengthening our currency, which, in turn, is dependent on the Government's diminishing their public sector borrowing requirement? How will they do that when, to advertise the price restraint scheme, they have a scheme that will cost almost £1 million, nearly half of which is for issuing little price tag kits and the postage involved? Is it not appalling that such a waste of money should be proposed at a time like this?

Mr. Maclennan

The hon. Lady astonishes me. She is usually anxious that consumers should understand the steps being taken by the Government to benefit them directly. She has constantly urged the improved display of prices and unit pricing. I do not understand why she should boggle at a sum of money that represents less than 1p per head of the population to give publicity to a scheme that will be of universal benefit.