§ Mr. Gwilym Robertsasked the Secretary of State for Prices and Consumer Protection what steps he is taking to prevent brewers marginally reducing the gravity of their beer and thus increasing their profits through reduction of tax liability.
§ Mr. MaclennanI do not consider it necessary to take special steps to prevent this. Under the Price Code, reductions in taxation must be passed through into prices unless offset by increases in costs. Profit margins are also controlled under the code. My right hon. Friend has, however, referred to the Price Commission for investigation the question of the prices and margins in the manufacture 487W and distribution of beer sold by retail for consumption on licensed premises.
§ Mr. Gwilym Robertsasked the Secretary of State for Prices and Consumer Protection if he will set up an inquiry into the profit margins and prices of the brewing industry.
§ Mr. HattersleyI announced on 10th February that I was referring to the Price Commission for examination and reports the prices and margins in the manufacture and distribution of beer sold on licensed premises.