§ Mr. Bishop
asked the Secretary of State for Trade and Industry if the counter-inflation measures include restrictions on price increases on fixed-price and other local authority and public contracts since 6th November; and what action he is taking to ensure that the policy of Her Majesty's Government on this matter is being complied with.
§ Sir G. Howe
Yes; the scope of the measures extend to fixed-price contracts and other local authority and public contracts. During the standstill, my Department has disseminated advice to maintain prices relating to contracts at levels obtaining before 6th November 1972, and powers are available under the Counter-Inflation (Temporary Provisions) Act to ensure compliance with the standstill arrangements.
During the second stage of the programme for controlling inflation, it is proposed that the Price Commission should have powers to ensure implementation of the provisions relating to prices which will be contained in the price and pay code.