HC Deb 22 October 1979 vol 972 cc19-20
15. Mr. Dorrell

asked the Secretary of State for Trade what has been the overall cost of the Price Commission to the taxpayer since it was first set up.

Mr. Eyre

Up to the end of March 1979, approximately £35 million at out-turn prices.

Mr. Dorrell

Can my hon. Friend tell the House what return the electorate had for its £35 million? Did the Price Commission—contrary to the prediction of the right hon. Member for Birmingham, Sparkbrook (Mr. Hattersley)—have any effect in reducing the rate of inflation and did it have any other effect on the economy, or was it just an expensive piece of window dressing?

Mr. Eyre

The answers that my hon. Friend has heard this afternoon have illustrated the minimal effect that the policies of the Price Commission had on prices. I have mentioned the damage done to industry as a consequence of those policies.

Mr. Harry Ewing

Why are the Government so scathing in their condemnation of the Price Commission? Is not the Minister aware that there are countless examples of the Price Commission having controlled the price of an article to the distinct advantage of the housewife, whom we are supposed to be protecting? Is he not also aware that there is one outstanding example where the Price Commission, in agreement with an industry, secured a substantial refund for the consumers of that industry?

Mr. Eyre

The hon. Gentleman is a victim of his party's propaganda. The Price Commission ordered a restriction on prices in only a small minority of cases and the effect of such restrictions was for only a temporary period. The effect was merely temporarily to delay a price increase.