§ Mr. Arthur Lewis
asked the Secretary of State for Trade and Industry whether he is aware that the prices of Simca cars in Great Britain are proposed to be increased by 3.9 per cent.; and what action he has taken, or intends taking, to prevent this price increase in view of the Government's declared policy to control prices.
§ Sir G. Howe
I am aware that Chrysler United Kingdom Ltd. announced on 9th February that, owing to movements in exchange rates, the prices of Simca models manufactured by Chrysler France and sold on the United Kingdom market would be increased by an average of 3.9 per cent. from 10th February. These are imported goods and it is not possible to freeze their prices in the same way as goods manufactured in this country. The company has been told that it is not permitted to increase its cash margin on resale.