§ Mr. Skeetasked the Chancellor of the Exchequer what action he intends to take in the light of difficulty that arises through the establishment of financial targets for the performance of State industries which may require an increased level of prices and the need to refer such proposed prices increases to the Price Commission.
§ Mr. Joel BarnettGovernment policy is as expressed in paragraph 75 of the 1978 White Paper on the nationalised industries—Cmnd 7131. The published exchange of correspondence of 22 and 23 March 1978 between the Secretary of State for Prices and Consumer Protection and the chairman of the Price Commission, copies of which were placed in the House Library is also relevant. Ministers have recently made clear to the chairmen of the industries their view that the industries should not be prevented from meeting their financial targets by price restrictions which cannot be matched by cost savings.