§ Mr. Cartwrightasked the Secretary of State for Prices and Consumer Protection if there is any progress to report on the selective price restraint scheme.
Mrs. Shirley WililamsOver recent months I have been holding discussions with representatives of the CBI, the Retail Consortium and other interested organisations about the possibility of introducing a selective price restraint scheme. I am glad to say that these discussions have progressed well. The CBI has accepted the scheme subject to its acceptance also by the Retail Consortium. One or two points remain to be agreed with the Retail Consortium but I am hopeful that these will be resolved shortly.
When agreement is reached individual trade associations in the manufacturing sector will be approaching their members. They will recommend them to participate in the scheme in respect of those items of their production on which it is expected, following preliminary discussions, that they will be able to restraint price increases during the period 1st February-31st July inclusive to a maximum of 5 per cent.
It will not be possible to announce the coverage of the scheme until this process has been completed but I hope to be in a position to do so in the near future so that the scheme can come into effect at the retail level in mid-February. Present indications are that a significant proportion of household expenditure will be subject to price restraint.
I shall make a further statement to the House as soon as possible.