§ Mr. Arthur Lewisasked the Chancellor of the Exchequer why, in view of the fact that many companies which have increased their prices by large amounts are declaring profits of between 10 per cent. and 20 per cent. above the previous year's results, he will not take action to prevent any organisations increasing their prices where a profit above the 10 per cent. wage guidelines is reported.
§ Mr. Joel BarnettBecause I am not in favour of a crude price control policy based on an assumption that company profits last year were at a generally satisfactory level. In fact, industry's profit354W ability in 1977 was on average lower than in any previous year except 1976, the worst of the last recession. We have frequently said that company profits need to be increased substantially above this level for British industry to be regenerated. The Government's counter-inflation policy includes a system of price control operated by the Price Commission which is intended to balance the interests of consumers with the Government's industrial objectives; it is not intended to operate as a general restraint on profits.
§ Mr. Lawsonasked the Chancellor of the Exchequer, further to the Written Answer to the hon. Member for Cornwall, North (Mr. Pardoe), Official Report, 28th April, columns 733–4, if he will publish a revised version of the table in which income tax levied on company profits for the years 1959–60 to 1965–66, inclusive, is classified as a tax on companies and not as a tax on personal incomes.
§ Mr. Robert SheldonI shall let the hon. Member have a reply as soon as possible.