§ Mr. Bishopasked the Secretary of State for Employment and Productivity if she is aware that, in two recent investigations by the National Board for Prices and Incomes concerning price increases, British subsidiaries of United States companies attempted to justify price increases here by citing the need for them to align United Kingdom prices with those of the United States parent company; and what action she proposes to take to limit this practice.
§ Mr. HattersleyI assume that my hon. Friend has in mind the references to the 107W Board on the prices of mercury hearing-aid batteries and of butyl rubber, which are dealt with respectively in the Board's Reports Nos. 64 and 66.
In the first case the argument in favour of price uniformity in various markets was the need to avoid the risk of the manufacturing company's price in export markets being undercut by merchants. Discussions are currently in progress with the United Kingdom company concerned in the light of the Board's comments on the discrepancy between the home and export price. In the second case the Board found that although the United Kingdom company had taken the opportunity offered by devaluation within the world price structure to increase their price on the home market, the increase made was nevertheless consistent with prices and incomes policy.
The Board in Report No. 64 drew attention to the problem presented by pricing policies of internationally based companies. In accordance with their recommendation each such case will be looked at on its merits and, where appropriate, referred to the Board.