HC Deb 10 February 1977 vol 925 cc758-9W
Dr. McDonald

asked the Secretary of State for Prices and Consumer Protection if he is satisfied with the work of the Price Commission in controlling prices, in the light of the Commission's statements that code profits are in many cases substantially lower than companies' published profits; and if he will make a statement.

Mr. Maclennan

Unlike profits calculated under the Price Code, the profits shown in many company accounts make little or no allowance for inflation. Although the Price Code does not permit companies to reflect full replacement costs in their calculations of price increases and profit margins, amendments made to the code last August went some way towards controlling prices on the basis of a truer reflection of companies' profitability.

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