§ Dr. McDonaldasked the Secretary of State for Prices and Consumer Protection if he will set up an inquiry into brewing profits and beer prices.
§ Mr. George Grantasked the Secretary of State for Prices and Consumer Protection if he will initiate an inquiry into the beer trade to consider brewers' profits, beer price increases and variation in beer prices.
§ Mr. Sedgemoreasked the Secretary of State for Prices and Consumer Protection if he will set up an inquiry into brewery profits.
§ Mr. MaclennanI have at this stage nothing to add to the reply I gave to my hon. Friend the Member for Wallsend (Mr. Garrett) on 13th December.—[Vol. 922, c. 576.]
§ Mr. Sedgemoreasked the Secretary of State for Prices and Consumer Protection if he will adjust the Price Code so as to ensure that price increases by the brewers do not lead to excessive profit increases.
§ Mr. MaclennanThe Price Code restricts the profit margins of firms in the brewing industry in the same way as for other industries. All major brewers are required to give advance notice of price increases and regular reports of profit margins to the Price Commission, whose function is to ensure that price increases and profit margins conform with the code.
§ Mr. Sedgemoreasked the Secretary of State for Prices and Consumer Protection if he will make a statement on the practical effect of the Price Code on profits in the light of recent price and profit increases by Messrs. Whitbreads brewery considered by the Price Commission.
§ Mr. MaclennanThe Price Code limits individual price increases by manufacturing and service firms and imposes ceilings on the net profit margins of every494W firm related to past performance. The code was modified last August to enable industry to raise the funds needed to finance investment and safeguard employment. I cannot comment on the application of the Price Code to individual firms, which is a matter for the Price Commission.
§ Mr. Sedgemoreasked the Secretary of State for Prices and Consumer Protection if he will adjust the Price Code so as to ensure that beer price increases do not lead to increased profits for 1976–77 and 1977–78 of more than 20 per cent. and 10 per cent., respectively.
§ Mr. MaclennanThe Price Code controls profit margins and not profit levels, and I see no reason at this stage to change this.
§ Mr. Sedgemoreasked the Secretary of State for Prices and Consumer Protection what discussions he has had, and with whom, about setting up an inquiry into brewery profits and beer prices.
§ Mr. MaclennanI have received a number of representations, but have had no formal discussions on this matter.
§ Mr. Sedgemoreasked the Secretary of State for Prices and Consumer Protection if he will refer concentration of power in the brewery industry to the Monopolies Commission.
§ Mr. John FraserThe Monopolies Commission reported in 1969 on the supply of beer for retail sale on licensed premises, but if my hon. Friend has any additional evidence that the brewers are conducting their affairs in such a way as to prevent, restrict or distort competition, perhaps he would care to write to me.