HC Deb 21 March 1979 vol 964 cc654-5W
Mr. Buchanan-Smith

asked the Secretary of State for Prices and Consumer Protection, in the light of the requirement of the Price Commission that increases in cement prices be applied on an area basis, whereas under the conditions of fluctuating contracts in the construction industry the system of indices is calculated on a national basis, and in view of the fact that this discriminates against building contractors in areas such as Grampian where cement prices have been increased beyond the national average, if he will make a statement.

Mr. Maclennan

The new pricing structure recently introduced by the manufacturers concerned reflects observations made by the Price Commission in its report on the Associated Portland Cement Manufacturers Company last June. The Commission suggested that the company should endeavour to move towards a price structure more closely related to the costs of delivery. These observations of the Commission were not ones which the Government had any statutory power to enforce, and my right hon. Friend was not responsible for their implementation. I understand, however, that the Commission will be looking again at the geographical structure of cement prices in the course of its current investigation of the Rugby Portland Cement Company Ltd.