§ Mr. Arthur Lewisasked the Secretary of State for Prices and Consumer Protection to what extent the known and expected increases in food prices and other items resulting from the ending of Great Britain's transitional period of entry into the EEC will in 1978 increase the cost of living and raise the retail price index.
§ Mr. MaclennanThe changes in agricultural support prices which will result from the completion of transition to EEC arrangements are equivalent to an increase of about 1 per cent. in consumers' expenditure on food, or about ¼ per cent. in expenditure on all items. Retail food 943W prices are however, influenced by many other factors than institutional prices, especially the strength of demand and the quantities of stocks held by processors and distributors. For some products large stocks are currently held, and the effects of the end of transition on food prices will, therefore be spread over some time.
For many industrial products, United Kingdom accession to the EEC, by reducing and eliminating tariffs, will help to restrain prices, but no estimate of the precise effect is readily available.