§ Mr. Cyril Smithasked the Secretary of State for Prices and Consumer Protection if she will take steps to ensure that the proprietors of licensed premises do not make excess profits from the sale of mixed drinks.
Mr. Alan WilliamsThe Price Code provides that prices in licensed premises may generally be increased only in line with increases in costs. In addition the code imposes a limit on the overall profit 505W that the business can make. If the hon. Member has any evidence of apparent breaches of the Price Code I shall be glad to ask the Price Commission to look into them.
§ Mr. Hoyleasked the Secretary of State for Prices and Consumer Protection (1) what evidence she has of overcharging for soft drinks in public houses;
(2) what action she contemplates taking to restrict the prices charged for soft drinks in public houses;
(3) what gross and net profits margins are allowed under the Price Code for soft drinks sold in public houses.
Mr. Alan WilliamsThe profit margins allowed under the Price Code in public houses relate to the enterprise as a whole, not to individual drinks or categories of drinks. The controls in the Price Code also provide that prices in this sector may be increased only in line with increased costs. I have no evidence that these provisions are being infringed by overcharging, but I should be glad to ask the Price Commission to look into any alleged breaches if my hon. Friend would let me have details.