Price Restraint (Hansard, 2 February 1976)

§ 4. Mr. Ioan Evans
asked the Secretary of State for Prices and Consumer Protection what discussions she has had with the Retail Consortium and the CBI regarding plans for voluntary price restraint on basic foods and other household goods.

§ 6. Mr. Cartwright
asked the Secretary of State for Prices and Consumer Protection if she will make a statement on her negotiations with industry and commerce leading to the introduction of selective voluntary price restraint.

§ 13. Sir George Young
asked the Secretary of State for Prices and Consumer Protection if she has reached agreement on her selective price restraint scheme; and if she will make a statement.

§ 24. Mr. Norman Lamont
asked the Secretary of State for Prices and Consumer Protection if she has reached agreement on her selective price restraint scheme; and if she will make a statement.

§ 28. Mr. Peter Morrison
asked the Secretary of State for Prices and Consumer Protection whether she has reached agreement on her selective price restraint scheme; and if she will make a statement.

Mr. Alan Williams
My right hon. Friend described the outcome of her discussions on the selective price restraint scheme in her statement on 27th January. The scheme comes into operation for manufacturing industry today and will do so for retailing and for service industries on 16th February.

§ Mr. Evans
I congratulate the Government on reaching agreement with the Confederation of British Industries and with the Retail Consortium. What reactions have the Government received from the Trades Union Congress and consumer organisations? Despite the rise in the price of potatoes, in view of the Government's success in keeping down prices generally, when may we expect an announcement from the Government that they intend to launch a major publicity campaign to make housewives aware of the scheme?

Mr. Alan Williams
The response from the TUC and the consumer groups, unlike 944 that from the Opposition, has been favourable. Publicity will be geared to the starting of the scheme at the retail level and will not, therefore, be starting immediately—otherwise, in the interim period it would raise hopes which would not be justified.

§ Sir G. Young
What arrangements have been made by the Department to control prices charged by the nationalised industries?

Mr. Alan Williams
My right hon. Friend indicated last week that we are not talking of controlling prices; we are entering into a voluntary agreement. The public sector, like the private sector, has been asked to consider what contribution it can make to this agreement, and in due course the full list will be announced.

§ Mr. Mike Thomas
In view of the importance of fuel and postage costs in the household budget, will my hon. Friend explain how it is that private industry has voluntarily entered into such an agreement whilst publicly-owned industries, which are the direct responsibility of my right hon. Friends, have appeared to be reluctant to do so?

Mr. Alan Williams
My hon. Friend cannot have read the statement made by my right hon. Friend, when she made it clear that the public sector will be cooperating. My hon. Friend will recognise that in a situation of soaring international energy prices we have to aim at viability in our energy prices.

§ Mr. Lamont
Is the hon. Gentleman aware that the Question asked by the hon. Member for Aberdare (Mr. Evans), unlike the potato, appears to have been well planted and is not a very typical reaction? Will he confirm that many of the items included in the list would not have risen by 5 per cent. in price anyway? Will he therefore answer the question that the Secretary of State did not answer recently, about what the effect of the scheme will be on the index of retail prices?

Mr. Alan Williams
If my hon. Friend's Question were planted—it would surprise me if it had been—all I can say is that it has yielded a very good crop, unlike last year's potatoes. It is impossible to predict the price index in advance. [HON. MEMBERS: "Ah!"] 945 Clearly hon. Members expect that one should have a crystal ball when one stands at the Dispatch Box.
We cannot precisely anticipate what price changes may take place over the six months of the scheme.

§ Mr. Evans
On a point of order, Mr. Speaker. An hon. Gentleman on the Opposition Front Bench has alleged that my Question was planted. May that remark be withdrawn? I have had no contact with the Department, and this Question appeared on the Order Paper before my right hon. Friend's statement last week. Will the hon. Gentleman withdraw his imputation?

§ Mr. Lamont
Further to that point of order, Mr. Speaker. In accordance with my usual habit, I withdraw the allegation.

§ Mr. Speaker
Whether or not the allegation was well founded, this is rather a waste of time.

§ Mr. Morrison
Will the Minister of State confirm that only 20 per cent. of all goods are affected by the price restraint scheme? Does he agree that the average housewife, doing the normal amount of shopping, will hardly benefit from it at all?

Mr. Alan Williams
A scheme that covers between 15 per cent. and 20 per cent. of goods is a marked contribution. The subsidy scheme and the previous price restraint scheme were beneficial. I am surprised that the Opposition should be carping at a scheme that is so extensive.