HC Deb 08 December 1967 vol 755 cc412-3W
Mr. Dalyell

asked the Secretary of State for Economic Affairs what advice he has given to trade associations as to how they should advise their members in relation to prices in the post-devaluation economic situation.

Mr. Shore

Production Departments are in touch with trade associations and will be discussing with them the application of prices and incomes policy in the new economic situation.

Immediately, the Government look to all concerned to ensure that increases in prices are no greater than is justified by increases in overall costs due to devaluation. This applies to distributors as to manufacturers and unavoidable increases in distributors' prices due to devaluation should not provide for automatic maintenance of current percentage margins.

Any other proposed increases in prices will need to be justified against the criteria for prices in Cmnd. 3235. The early warning arrangements for prices continue to apply and the provision for reference to the National Board for Prices and Incomes for investigation will be fully utilised. These arrangements where necessary can be supported by the reserve powers of the Prices and Incomes Act, 1966 and 1967.

Mr. Whitaker

asked the Secretary of State for Economic Affairs whether he is satisfied with the present arrangements for price-vetting, which are similar to the wage-vetting procedure of the Trades Union Congress; and if he will make a statement.

Mr. Frederick Lee

My right hon. Friend is not aware of any arrangement for price-vetting by industry similar to the wage vetting procedure of the Trades Union Congress. The arrangements for notification to the Government of proposed increases in prices and for their examination are set out in Cmnd. 3235. These arrangements have worked well but the Government are reviewing the vetting

£ million
1.10.61–30.9.64 1.10.64–30.9.67
Scotland England and Wales Scotland England and Wales
Assistance made available under Local Employment Acts* 25.3 30.0 53.0 88.8
(of which advance factories approvals) … 1.9 1.5 4.1 7.8
Investment grants† … — — 23.1 157.8
(to 24.11.67) (to 24.11.67)
Government Training Centres including Industrial Rehabilitation Centres‡ … 1.1 10.3 3.0 21.1
Ministry of Labour assistance to firms in Development Areas for Industrial Training§ ║ ║ 0.4 0.9

Notes:

* These figures do not include the Regional Employment Premium.

† Investment grants were introduced on 19th January, 1966, in place of the previous system of investment allowances.

‡ These estimates exclude cost of premises.

§ These figures do not fully reflect the improvement in the grant system introduced on 1st April, 1966, and 16th October, 1967.

║ Prior to 1st September, 1964, grants for training were paid under the Local Employment Acts. The cost cannot be separately distinguished.