HC Deb 14 March 1977 vol 928 cc21-2
23. Mr. David Price

asked the Secretary of State for Prices and Consumer Protection in what way he intends to encourage investment among distributors.

Mr. Maclennan

The investment relief provisions of the present code already meet this need.

Mr. Price

Is the hon. Gentleman aware that that is not entirely satisfactory? Will he take account of the fact that there are two aspects to this? There is investment, which improves shopping facilities both for customers and for the staff working in retail outlets, and, far more seriously, there is the problem of providing sufficient working capital to accommodate continual price rises in the costs of materials and food being bought by retailers. That has to be financed. The Price Code must accommodate it.

Mr. Maclennan

The Government recognise the force of some of the hon. Gentleman's comments. After changes were made to the Price Code in August, as a result of relief claimed under the investment relief provisions £355 million of investment expenditure was claimed. I think that the hon. Gentleman's point Consumer Credit Act has been met.

Mrs. Sally Oppenheim

Is the hon. Gentleman aware that in the new prices policy consultative document it is clear that the distributors have been discriminated against in a big way? There is no relief for them of the same order as is given to manufacturing industries. As distributors have not been making excessive profits, and as they employ a high proportion of school leavers, is the hon. Gentleman satisfied with the amount of unemployment among school leavers that is likely to be created?

Mr. Maclennan

I am satisfied that the proposals for the distributive trades in the consultative document will not impose a discriminatory or unfair burden on that section. I am equally sure that it is necessary to retain control of gross and net profit margins in the distributive trades at a time when working people throughout the country are accepting universally the need for restraint in their incomes.

Mr. Skinner

Does my hon. Friend agree that in the past 40 minutes we have been listening to a tirade from the Opposition about rising prices? Does he further agree that if the proposal of the hon. Member for Gloucester (Mrs. Oppenheim) is carried into effect it will push up prices even further?

Mr. Maclennan

I agree completely—

Mr. Skinner

Say "Yes".

Mr. Maclennan

Yes, and yes again. My hon. Friend has underlined the point made by my right hon. Friend that the Opposition's performance this afternoon has been wholly negative.