Small Businesses

HC Deb 27 May 1976 vol 912 cc372-3W

Mr. Brotherton

asked the Secretary of State for Prices and Consumer Protection how many inspectors have been involved in investigating the profits of small businesses in commission category 3 under the spot check system.

Mr. Maclennan

There is no spot check system. The information order requires category III enterprises to maintain records of profit margins in relation to reference levels established under the Price Code. These records are subject to periodical checking by the staff in the Price Commission's 15 regional offices. Some 125 staff are engaged on these duties, but for most of them this work represents only part of their responsibilities.

Mr. Brotherton

asked the Secretary of State for Prices and Consumer Protection when she next expects to modify the Price Code to allow greater profit ceilings for small businesses.

Mr. Maclennan

My right hon. Friend will be publishing a consultative document next month with proposals for modifications to the Price Code, but I cannot undertake that this will include proposals to discriminate between large and small businesses in respect of profit ceilings.

Mr. Brotherton

asked the Secretary of State for Prices and Consumer Protection what is her Department's current definition of profit ceilings for small businesses in the Price Commission's category 3, as laid down in the Price Code.

Mr. Maclennan

The provisions in the Price Code are the same for firms of all sizes. The general rule is that prices should be determined so as to secure that net profit margins do not exceed the average level of the best two of the last five years of account before 30th April 1973.

Mr. Brotherton

asked the Secretary of State for Prices and Consumer Protection what powers Price Commission inspectors have to investigate the books and accounts of small businesses in the Price Commission's category 3.

Mr. Maclennan

Under Section 15 of the Counter-Inflation Act 1973 the Price Commission has power by notice to require the production of documents, returns and other information for the purposes of the Act. Under paragraph 3 of Schedule 4 to the Act designated officers would have certain powers to require the production of documents for the purpose of determining whether an order or notice under Section 6 of the Act has been complied with.