HC Deb 25 November 1974 vol 882 cc68-9W
Mr. Sedgemore

asked the Secretary of State for Prices and Consumer Protection (1) if she can apportion the £800 million increase in prices resulting from the relaxation of the Price Code announced in the Budget between (a) the 17½ per cent. investment allowance, (b) the productivity allowance and (c) other factors;

(2) if she can apportion the £800 million increase in prices resulting from the relaxation of the Price Code announced in the Budget between (a) firms with an annual turnover of over £50 million and (b) other firms;

(3) what portion of the £800 million increase in prices resulting from the relaxation of the Price Code will go to manufacturing firms (a) with a turnover of more than £50 million, (b) with a turnover of more than £20 million and (c) with a turnover of more than £10 million.

Mr. Maclennan

The broad £800 million estimates relates to company profits, not to prices. The various provisions of the Price Code interact; the effect of particular provisions cannot be isolated or apportioned between different parts of industry.

Mr. Sedgemore

asked the Secretary of State for Prices and Consumer Protection (1) what estimates she made of the increase in investment—that is, investment not planned before the Budget Statement—that will take place as a result of the relaxation of the Price Code in respect of the 17½ per cent. investment allowance;

(2) what estimates she has made of the increase in manufacturing investments —that is, investment not planned before the Budget Statement—that will take place as a result of the relaxation of the Price Code in respect of the 17½ per cent. investment allowance;

(3) what estimates she has made of jobs that will be saved as a result of the increase in prices which will result from the relaxation of the Price Code (a) in respect of the investment allowance, (b) in respect of the productivity allowance and (c) overall.

Mr. Maclennan

The changes in the Price Code, with other measures in my right hon. Friend's Budget package, should improve business confidence and safeguard investment and jobs. The effect of particular measures on investment decisions cannot be quantified in any useful way: there are many other factors involved.

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