HC Deb 05 August 1976 vol 916 cc960-1W
Mrs. Wise

asked the Secretary of State for Prices and Consumer Protection why private sector companies can have Price Code relief on account of investment but nationalised industries cannot.

Mr. Maclennan

The investment programmes of nationalised industries are subject to Government approval. Taking the Price Code as a whole, the treatment of nationalised industries is broadly on a par with that of the private sector, and the exclusion of these industries from particular provision of the code does not imply that they are at a disadvantage.

Mrs. Wise

asked the Secretary of State for Prices and Consumer Protection how many companies have had to reduce prices which had been increased as investment relief between December 1974 and May 1976, because they had not invested as much as they had planned; and how much money has been involved.

Mr. Maclennan

Shortfalls in forecast investment expenditure do not necessarily entail prices being reduced. When a shortfall is identified by the Price Commission's regular monitoring, it is followed promptly by an appropriate adjustment to the company's relief entitlement so as to limit the amount recoverable to actual expenditure. For the amounts involved I would refer my hon. Friend to pages 21 to 23 and Appendix 5 of the latest quarterly report by the commission.

Mrs. Wise

asked the Secretary of State for Prices and Consumer Protection whether there is any independent check on the returns submitted by companies to the Price Commission in connection with reliefs which have been claimed on account of investment; and, if so, what forms the independent checks take.

Mr. Maclennan

When firms claim relief, the Price Commission checks from the relevant minutes that expenditure has been approved by the board of directors. Thereafter, actual expenditure incurred is reported at six-monthly intervals. The provision of false or misleading information would constitute an offence under Section 17 of the Counter-Inflation Act 1973. Investment expenditure will also be reflected in a firm's published and audited accounts, which are reconciled by the Price Commisison with returns made to it.