§ 20. Mrs. Knightasked the Secretary of State for Prices and Consumer Protection what are the rules governing the overruling of a recommendation by the Price Commission; and what bodies or persons have the power so to overrule.
§ Mr. HattersleyUnder paragraph 6 of Schedule 2 to the Counter-Inflation Act 1973, a Secretary of State has power to permit a price increase when the Price Commission has used or is contemplating using its powers under Section 6 of that Act to restrict a price or charge. This may be done where, having consulted the Price Commission, the Secretary of State is satisfied that there are exceptional circumstances which justify an intervention. These are the only circumstances in which the Price Commission can be overruled.
§ Mrs. KnightDoes not the Secretary of State think that it is rather ludicrous to have an expensive, complicated and bureaucratic machine like the Price Commission which can be overruled at the whim of a Minister? Is it for real or is it not?
§ Mr. HattersleyThat expensive and complicated bureaucratic machinery was something which the hon. Lady voted for five years ago—
§ Mrs. KnightNo, I did not.
§ Mr. Hattersley—and I voted against. But, putting that aside, I think that there are occasions when one would want to use a Minister's power to prevent the normal operation of the Price Code. The example I gave, without being prompted, was a gas price increase some months ago which was necessary to the economic package we put together in December. I 21 have do doubt that in the end the wisdom of that decision will be demonstrated.
§ Mr. HooleyWill my right hon. Friend give a little more thought to this ministerial power of veto and overruling, which in the public mind can only diminish the status and authority of the Price Commission and call in question its responsibility in exercising its power?
§ Mr. HattersleyMy hon. Friend makes a strong point for the future. I am examining the possibility—I am not sure whether it is practical and legally possible—of ensuring in the new Price Commission Bill that when industries or companies are excluded there is some element of parliamentary control over that exclusion. If I can incorporate that in Committee, I shall certainly do so.
§ Mr. NeubertBut is not the Secretary of State failing in his prime responsibility to protect the consumer by allowing the imposition of a special tax on two out of three householders who use gas in order to offset its competitive advantage over other fuels and to keep the coal miners, with their poor productivity record, in business?
§ Mr. HattersleyThe hon. Gentleman sees these matters in too simple terms. We have always said—I think that this is agreed on both sides of the House—that the real way to combat inflation is to build a stable and expanding economy. The short-term measures we took to bring that about are in the interests of the consumer. That is why I supported them in December.