HC Deb 05 July 1976 vol 914 cc374-6W
25. Mr. Nicholas Winterton

asked the Secretary of State for Prices and Consumer Protection whether she will make a statement on her negotiations with the CBI and TUC about the Price Code.

34. Mr. Heffer

asked the Secretary of State for Prices and Consumer Protection what discussions she has had with the TUC regarding the Price Code; and if she will make a statement.

Mrs. Shirley Williams

I refer the hon. Members to the reply I gave to the hon. Members for Hertfordshire, South-West (Mr. Dodsworth) and Kingston upon Thames (Mr. Lamont) earlier today.

Mr. Wakeham

asked the Secretary of State for Prices and Consumer Protection at what intervals, and for what periods, the flexibility introduced under paragraph 17(2) of the draft Price Code will be operable; and whether firms will be able to change their arrangements should their circumstances change.

Mr. Maclennan

My right hon. Friend proposes that the option to treat manufacturing and service activities as a single activity should be available to companies at any time after the new Price Code comes into force. Where their circumstances change, firms would not be debarred from changing their accounting units for pricing purposes insofar as it is administratively feasible and provided that separate accounts can be produced for each unit in accordance with the code's requirements.

Mr. Wakeham

asked the Secretary of State for Prices and Consumer Protection whether paragraph 17 of the draft Price Code will enable firms carrying on

LOWER LIMITS FOR CATEGORISATION
(£)
Sector Present limits Adjusted for RPI increase Proposals in Cmnd. 6540
Category II
Manufacturing … … … 5,000,000 8,425,000 10,000,000
Construction … … … 5,000,000 8,425,000 7,500,000
Commercial services … … … 5,000,000 8,425,000 7,500,000
Professional services … … … 500,000 842,500 750,000
Distributors … … … 10,000,000 16,850,000 15,000,000
Category III
Manufacturing … … … 1,000,000 1,685,000 2,000,000
Construction … … … 1,000,000 1,685,000 1,500,000
Commercial services … … … 250,000 421,250 375,000
Professional services … … … 100,000 168,500 150,000
Distributors … … … 250,000 421,250 375,000

Mr. Wakeham

asked the Secretary of State for Prices and Consumer Protection what is her estimate of the total cost to industry and commerce of administering the Price Code for the current year to the latest available date.

Mr. Maclennan

It is not possible to make a reliable estimate.

Mr. Wakeham

asked the Secretary of State for Prices and Consumer Protection what was the total cost to public funds of administering the Price Code for

business from more than one outlet to elect, so far as their circumstances warrant, to treat each outlet as a separate entity.

Mr. Maclennan

For the purposes of allowable cost and gross percentage margn calculations, firms are permitted to use any sub-division, including separate outlets, for which separate accounts can be made available in accordance with paragraph 14 of the Price Code. There are further rules about the extent to which firms may split for profit control purposes in paragraph 67 of the Price Code.

Mr. Wakeham

asked the Secretary of State for Prices and Consumer Protection if she will list in the Official Report the categorisation limits for Category II and Category III Sectors, as set out in paragraph 45 of "Modifications to the Price Code" (Command Paper No. 6540), taken at 1973 levels and adjusted for the increase in the Retail Price Index since that date.

Mr. Maclennan

The information, based on the rise in the Retail Price Index between April 1973, when the categorisation limits were introduced and May 1976, is as follows:

the year to 31st Marsh 1976 or the latest available year; and what is the estimate for the current year.

Mr. Maclennan

As explained in reply to a Question by the hon. Member for Bromsgrove and Redditch (Mr. Miller) on 27th March, separate figures for the Price Commission's costs in administering the Price Code are not available. The total cost to public funds of the Price Commission for these years was given in reply to a Question from the hon. Member for Eastbourne (Mr. Gow) on 20th May.