HC Deb 04 March 1976 vol 906 cc699-701W
Mr. Richard Wainwright

asked the Secretary of State for Prices and Consumer Protection how many members of her Department's staff are involved in administering the price check scheme; and how many of these are involved exclusively in administering the scheme.

Mr. Maclennan

Twenty-two members of my Department's staff have been involved wholly or partly in administering the price check scheme, nine of them exclusively.

Mr. Richard Wainwright

asked the Secretary of State for Prices and Consumer Protection what is her estimate of the reduction in the rate of increase in price which she has secured on those goods now listed in the price check scheme.

Mr. Maclennan

The goods in the scheme were included on the basis of manufacturers' assessments of their ability to hold price increases within 5 per cent. cent. during the period of the scheme, as a result of the lower rate of increase in their costs. It is not possible to make an estimate of the extent to which prices for these items would have risen in the absence of the scheme, or of the Government's counter-inflation policy as a whole.

Mr. Richard Wainwright

asked the Secretary of State for Prices and Consumer Protection what criteria were used in the selection of goods for inclusion in the price check scheme.

Mr. Maclennan

The items for inclusion in the scheme were agreed as a result of discussions between Government Departments and industry. Those included were items of importance in family expenditure where the industry was satisfied that prices could be held within 5 per cent. during the period of the scheme, as a result of the lower rate of increase in their costs.

Mr. Richard Wainwright

asked the Secretary of State for Prices and Consumer Protection what negotiations she had with manufacturers before including their goods on the price check scheme list.

Mr. Maclennan

Most negotiations with manufacturers and with bodies representing manufacturing industry sectors were undertaken by the appropriate sponsoring Departments. About 100 trade associations were involved in the negotiations.

Mr. Richard Wainwright

asked the Secretary of State for Prices and Consumer Protection what powers she has to limit price rises of goods listed under the price check scheme; and what action she will take in the case of any listed goods whose price is increased by more than 5 per cent. during the next six months.

Mr. Maclennan

Participation in the price check scheme is voluntary, but those participating remain subject to the Price Code which ensures the prices for manufactured goods and services do not rise faster than costs.

Mr. Richard Wainwright

asked the Secretary of State for Prices and Consumer Protection if she will seek powers to include in the price check scheme the prices charged for goods and services by nationalised and Government-controlled industries.

Mr. Robert Maclennan

The price check scheme is voluntary. Domestic gas tariffs—Great Britain only—inland letter post up to 100 grammes and domestic telephone and telegram charges are included in the scheme. These account for some 30 per cent, of all consumers' expenditure on nationalised industry products.

Mr. Richard Wainwright

asked the Secretary of State for Prices and Consumer Protection what categories of business were sent the price check scheme kit, on what basis they were selected; and why wholesale fruit and vegetable merchants were included.

Mr. Maclennan

Price check kits have been sent to those categories of retailer who sell goods included in the price check scheme. Among these are greengrocers and fruiterers, some of whom are described as "fruit and vegetable merchants". This term also describes some wholesalers of fruit and vegetables. Rather than risk excluding some individual retail greengrocers and fruiterers from our mailing it was decided to send the kit to all fruit and vegetable merchants.