§ Mr. Pavittasked the Secretary of State for Prices and Consumer Protection when the report of the Price Commission on privately prescribed hearing aids will be published.
§ Mr. MaclennanThis report is being published today. Copies have been placed in the Library of each House. The Commission found an industry with an unusual structure, with a static market and the practice of making most sales at home rather than shops. Profits of both manufacturers and retailers have generally been modest. The customer usually pays an inclusive fee covering consultation, prescription, purchase and after sales support. Suppliers' overheads are thus unusually high and lead to very considerable disparity between the cost of the hearing aid from the manufacturer—typically about £22—and the £116 which the customer pays on average as the inclusive fee.
Since an important element in the purchase of a hearing aid is after-sales support, the Commission recommends that prospective buyers should go to more than one firm before making a decision and that they should look particularly at the sort of service offered in the price. The Commission notes that, from the point of view of assisting the customer's choice and enabling him to decide whether he is getting value for money, it can be argued that different elements in the inclusive fee should be separated in the bill. This has been considered in the past and rejected, but the Commission recommends that the matter be looked at again.
I now propose to discuss the report with interested bodies. I shall make a further statement when these discussions are complete.