§ Mr. Arthur Lewisasked the Secretary of State for Trade whether, as he has power to supervise subscriptions, charges and increases to the Automobile Association, what action he has taken, or intends taking, in view of the Association's decision once again to increase subscriptions by 15 per cent. in view of this being contrary to the Government's 10 per cent. guidelines.
Mr. Clinton DaviesI am aware of the Automobile Association's intention. The AA is authorised as an insurance company under the Insurance Companies Act 1974; the AA's charges are therefore regarded as insurance premiums for the purposes of counter-inflation policy; as such, they are subject to my right hon. Friend's powers under Section 9 of the Counter-Inflation Act 1973. There are, however, no grounds for intervention in this case.