§ Mr. Neubertasked the Secretary of State for Prices and Consumer Protection what is the total estimated cash value of interim and subsequent safeguards for company profits or margins applied in connection with investigations and 327W examinations under the Price Commission Act since 1st August 1977; and what effect this has had on the retail price index.
§ Mr. MaclennanIt is estimated that on an annualised basis the total yield per year of price increases awarded under the safeguard regulations since 1 August 1977 is approximately £365 million. Prices investigated by the Price Commission are not necessarily components of the retail prices index, but if fully passed on to the United Kingdom consumer this annual sum would represent approximately 0.5 per cent. of consumer expenditure. The function of the Price Commission is, however, to investigate prices and price increases on a selective basis in accordance with the criteria set out in section 2 of the Price Commission Act 1977, and not to seek to control the general level of inflation.