HC Deb 15 November 1976 vol 919 cc919-20
18. Mr. Wakeham

asked the Secretary of State for Prices and Consumer Protection whether he is satisfied with the Price Code in its present form.

Mr. Hattersley

I am satisfied that the Price Code should remain in force until my present powers expire next July.

Mr. Wakeham

Will the Secretary of State confirm that the recent relaxation of the Price Code was intended to allow some £1,000 million of additional profits in industry? Will he estimate by how much this has been reduced as a result of the increase in national insurance charges which distributors have to pay and which they are not allowed to recoup?

Mr. Hattersley

The hon. Gentleman is wrong to say that recoupment—if that is the right word—is not applicable to distributors. There is some argument about the powers which make it possible for distributors to act in that way. My right hon. Friend the Chancellor of the Exchequer has been explicit about that, and what he has said must apply.

Mr. Heffer

Has the relaxation of the Price Code led to more investment, which was the argument used at the time? If it has not, what do the Government intend to do about it?

Mr. Hattersley

It is impossible precisely to relate the relaxation of the Price Code to individual investment decisions. However, I have no doubt that, in our attempt—which must be extended—to encourage the proper climate for investment, the relaxation of the Price Code has played a substantial part. If my hon. Friend looks at the surveys by the Department of Industry and the CBI, he will see that investment prospects for next year are considerably improved, and I hope and believe that the changes in the Price Code have made a contribution to that.