§ 2.50 p.m.
§ The Question was as follows:
§ To ask Her Majesty's Government what are the number and sizes of increases in the price of cement since April 1974, and whether a further price increase is under consideration.
Lord ORAMMy Lords, these are questions for the Price Commission. I have asked the chairman of the Commission to write to by noble friend.
§ Lord HALEMy Lords, I thank the noble Lord for that answer. Is he aware that the figures were published in the excellent paper, the Construction News, a few days ago? They show that there have been three or four increases in cement prices every year since 1974 and that in two years prices rose from £9.10 per ton 802 to £13.10 per ton. There were four increases last year and there was an increase this January. An increase is now under consideration. Is it right that that would increase the price to £22 per ton?
Lord ORAMMy Lords, to answer the last part of my noble friend's supplementary question, he may have overlooked an announcement that was made towards the end of last week that the Price Commission has rejected the proposed increase to which he referred. However, prices may be increased to help recoup expenditure or deal with low profit situations only if production costs have increased. The price controls which operate through the Price Code in general require that there should be an interval of at least three months between price increases.
§ Lord HALEMy Lords, does my noble friend really think that an interval of three months is enough? Is it not essential that we should try to obtain stability in this excellent and much-used material, which is absolutely vital to the building and construction industry? Is it a fact that the last increase was made partly because increased fuel prices were in the pipe-line; cement manufacturers build pipe-lines and therefore increased fuel prices are partly due to the price of cement? This is a very alarming economic situation because it does not seem to show any practical future policy.
Lord ORAMMy Lords, the Price Commission examines such applications to ensure that increases are authorised only if they are within the provisions of the Price Code. The Price Commission takes into account exactly those factors to which my noble friend referred, and indeed others.