HC Deb 17 April 1978 vol 948 cc12-4
12. Mr. Hicks

asked the Secretary of State for Prices and Consumer Protection whether he is satisfied with the pricing policies of petrol companies in respect of prices paid for petrol in peripheral rural areas by consumers; and if he will make a statement.

Mr. Maclennan

We continue to keep a careful watch on petrol prices, but there is no evidence that distributors in rural areas are making excessive profits. The Monopolies and Mergers Commission is currently studying certain aspects of the wholesale supply of petrol and is due to report by July of this year.

Mr. Hicks

Is the Minister aware that in the South-West there is the highest percentage of car-owning families of any region in the United Kingdom, yet in an area such as South-East Cornwall average earnings are 14 per cent. below the national average? Will he acknowledge that this paradoxical situation results from the need to possess cars for essential journeys? Is it not another example of the Government hitting rural, peripheral regions?

Mr. Maclennan

Perhaps the hon. Gentleman would at least acknowledge that if the Government introduced a maximum price that operated throughout the country it would probably not have the effect of reducing prices in the area that he represents because the price margins of those selling petrol in those areas are, according to the reports that we have had prepared, quite small. However, it would have the effect of increasing prices in other parts of the country. If that is the hon. Gentleman's policy, perhaps he will make it plain.

Mr. John Ellis

Will my hon. Friend say whether he knows what is going on in rural areas? The consumer organisations are set up in Labour-controlled area, usually in the towns and cities. The niggardly Conservatives will not spend any money on providing people with this kind of service, so we do not know what is going on. The Labour Party is also concerned about the decline in the post offices as well as about petrol prices. Will he give more grant aid or see what we can do to make up this deficit from the Conservative shire counties?

Mr. Maclennan

It is perfectly fair to draw attention to the double standards of the Opposition on this matter. The Conservative Party complains about high prices in its areas but does nothing to support the fact-finding inquiries that we have put in hand. We have had two fact-finding inquiries—one conducted by the Price Commission into motor fuel retailers' margins, and an inter-departmental inquiry. They have proved the point that I earlier emphasised, that distributors in the rural areas are not making excessive profits. However, we await the report of the Monopolies and Mergers Commission with interest.

Mr. Peter Mills

Will the Minister bear in mind that it is not only prices that are hurting rural areas but the refusal of some companies to supply small garages? This, coupled with various Government measures over the years, is clobbering the rural areas. Will the hon. Gentleman do something about it?

Mr. Maclennan

The hon. Gentleman would greatly help this important debate if he would make more specific accusations against particular companies or particular Government policies. General charges make no contribution whatever.

Mr. Park

I can give my hon. Friend a specific instance. If he drives his car from the Midlands to North Wales, he will find that the price of petrol varies by as much as 8p a gallon. He cannot possibly justify that.

Mr. Maclennan

I am aware of the substantial variations in the price of petrol, particularly, on motorways, which are being considered by the Price Committee at the moment. As for prices in Wales, we have recently received a specific report by the Government-appointed Welsh Consumer Council.