§ 3. Mr. John Ellisasked the Secretary of State for Prices and Consumer Protection if he will refer to the Price Commission the level of prices charged by retailers for fresh vegetables and salad ingredients.
§ Mr. MaclennanAs part of its standing reference on fresh food prices, the Price Commission already monitors the prices and distributors' margins of potatoes and other vegetables the prices of which were forced up by the effects of last summer's drought. This exercise will continue until it is clear that supplies have returned to normal and that prices reflect this.
§ Mr. EllisDoes my hon. Friend agree that somebody is not getting to the truth in this matter? Is he aware that until recently farmers were receiving 1p or 2p for lettuces which were being sold at between 10p and 13p in the shops? Does he agree that daylight robbery is taking place and that neither the growers nor the consumers are benefiting? Will he ask the Price Commission to sort this out? Is he aware that when there is a drought it is given as the reason for price increases but that when we have a glut prices do not come down? That is not acceptable.
§ Mr. MaclennanIt would be unacceptable if prices did not come down when producers' prices were falling, but the price of lettuces today is 9p or 10p cheaper than it was two months ago.
§ Mr. MaclennanIt takes time fully to analyse distributors' margins. I believe that the Price Commission's standing reference will cover the anxieties raised by my hon. Friend.
§ Mr. RidsdaleIf the Under-Secretary wishes to help concerning the retailing of lettuces, he should look at the Covent Garden Market Authority. Does he think it fair that the entrance charge to Covent Garden has gone up from 20p to £1—an increase of 500 per cent.—in the last few months? Does not that prove that the Government do not care about distribution costs?
§ Mr. MaclennanIf the hon. Member has a serious point to make, I shall consider it.
§ Mrs. DunwoodyIs my hon. Friend aware that the wholesaling of fruit and vegetables escapes weights and measures legislation? Does he not agree that that is bizarre? Is he aware that today I have sent him a list which makes it 5 clear that there are considerable discrepancies? Does he accept that if he does not instigate a full inquiry he will be failing in his duty?
§ Mr. MaclennanI shall look carefully at the figures which my hon. Friend has sent to me. I hope she will accept that the Price Commission is already seized of the question of distributors' margins. As the Price Commission's report shows, there is no evidence to suggest that there is profiteering of the kind which she has suggested.
§ Mr. MaclennanMy hon. Friend the Member for Brigg and Scunthorpe (Mr. Ellis) has rightly drawn attention to the fact that the Price Commission's report relates to a situation which is some weeks out of date. My hon. Friends will be aware that our powers under the new legislation will be considerably greater than they are at present. I am proposing to discuss with the new Price Commission whether it is possible to improve and speed up the mechanism for examining distributors' margins.
§ Mr. Gwilym RobertsDoes not my hon. Friend agree that the real need in this matter is for an investigation into the whole mechanism of sale? There are innumerable stages before the produce reaches the customer. The whole thing is a racket, with people cashing in at every stage.
§ Mr. MaclennanI am not sure that my hon. Friend is right in saying that what is needed is an investigation. I believe that what is needed is power to act on a recommendation from the Price Commission. That is why the House has passed the Price Commission Act. I believe that investigations carried out under these standing references may in future lead to more results than is the case in the present situation.