§ 15. Mr. Rookerasked the Secretary of State for Prices and Consumer Protection what is his estimate of relief given under the Price Code for investment in the past 12 months.
§ Mr. MaclennanIn the 12 months to November 1976, the Price Commission dealt with claims worth more than £700 million and covering investment expenditure worth about £2,000 million. However, the constraints of the market will have reduced the extent to which claims for investment relief are taken up. Not all of the £700 million will therefore have been reflected in higher prices.
§ Mr. RookerDoes my hon. Friend accept, bearing in mind that category 1 companies have probably paid next to nothing in corporation tax last year and this year, that his figures show that little has gone into investment and new jobs by way of relief under the Price Code? Has not the time come when trade unions and others who suffer as a result of loss of jobs should have a say in how the margins and investment relief are used, so that jobs are created? Should not the task be given to the Manpower Services Commission rather than the Price Commission?
§ Mr. MaclennanThe relief can be claimed only on proof that investment is being made, and the Price Commission monitors this very carefully in order to ensure that the investment has occurred. If it has not, reductions in prices can be required.