§ Mr. Neubertasked the Secretary of State for Prices and Consumer Protection what is the effect on the retail price index of the aggregate reductions of £120 million, estimated by the Pire Commission to have resulted from price increases being withdrawn or reduced, or postponed either formally or by voluntary undertaking, in the 12 months to 1 August 1978; and what further effect on the retail price index there would have been if no safeguards had been invoked during and or subsequent to investigations and examinations under the Price Commission Act 1977 during that period.
§ Mr. Maclennan£120 million might represent between one-seventh and one-eighth of 1 per cent. of annual consumers' expenditure.
It is estimated that the total yield per year of price increases awarded under 290W the safeguard regulations in the 12 months to 1 August 1978 is approximately £287 million, equivalent to about one-third of 1 per cent. of annual consumers' expenditure. Because one cannot say how much of these increases would have been awarded at the Commission's discretion had the safeguard regulations not existed, one cannot estimate what the effect on the retail prices index might have been.
However this does not take into account the extent to which firms either do not seek price increases or seek price increases lower than they otherwise would because of the existence of the Price Commission.