HC Deb 29 July 1974 vol 878 c27W
Mr. Adam Butler

asked the Secretary of State for Prices and Consumer Protection if she will confirm that because of the reduction of wage costs resulting from the increase in regional employment premium those firms in receipt of it will be required to reduce their prices accordingly.

Mrs. Shirley Williams

Under the Price Code, the increase in REP will be taken into account in calculating changes in labour costs, and should, therefore, be reflected in the prices of the firms concerned. However, because of the productivity deduction, firms will not necessarily have to reflect the whole of the changes in REP in their prices and some will enjoy an improvement in cash flow. This is in line with the Government's policy to encourage investment and employment in the regions.