GOODS AND SERVICES (PRICE CONTROL) BILL. (Hansard, 2 July 1941)

§ LORD SNELL

My Lords, the object of this Bill, as stated in the Explanatory and Financial Memorandum, is to make further provision against excessive rises in charges made for both goods and services, and to amend and supplement the provisions of the Prices of Goods Act, 1939. This Bill has a quite definite place in the policy of His Majesty's Government, the major aim of which is to avoid the perils of inflation by high taxation and by savings which immobilise purchasing power. The aim thus expressed is not achieved by the control of prices alone, and unless measures are taken in the field of taxation, rationing, and other matters, the effort to stop prices rising may fail. But, on the other hand, without price control, other precautions may be nullified.

I shall not attempt—there would be no use in doing so—to describe the details of this Bill to your Lordships in the present state of your Lordships' House. I may say, however, that while it is generally recognised that there is bound to be some increase in prices during wartime, there is a general, indeed wholesale, demand that in these circumstances there 641 should be no profiteering. It was to secure the am I expressed that the Prices of Goods Act in 1939 was passed. I shall not describe the details of that Act. I may say, however, that it continues to work reasonably well. It has been effective against the general rise of prices. But experience has shown that there are certain defects in it in so far as one section of its work is concerned—namely, that of preventing profiteering by both wholesalers and retailers.

Circumstances have rendered it necessary that there should be a more rigid system of price control. I mention only one or two of the principal revealed defects. For instance, the Board of Trade has no power to fix maximum prices of goods, and this power is essential if a really strict control of prices is to be exercised. It does not enable effective action to be taken against speculators or in regard to re-sales of commodities by middle-men. The burden of the Act, so far as it is a burden, falls on the retailer because he comes into direct contect with the customer. The provisions of the Act with regard to the holding up of stocks for instance, are drafted in terms which make it almost impossible to prosecute. There are other 642 defects in the Act of quite an important character—for instance, those dealing with furniture storage, laundry charges, boot repairs, and so on—and it is felt that the Board of Trade should have the power to regulate these charges. Hence this Bill is placed before your Lordships. It does not supersede the Prices of Goods Act, but gives the Board of Trade greater powers of control, and it amends certain parts of that Act. That is as much as I need say on the Bill at this stage. I have dealt with it with great brevity, and in a way that gives no idea of its importance or its complications, but in the circumstances I hope I have said sufficient to indicate what its main provisions are. The powers it seeks are necessary for the public at the present time. They are urgently required, and therefore I commend the Bill to your Lordships' attention. I beg to move that it be read a second time.