HC Deb 27 March 1979 vol 965 c120W
Mr. Buchanan-Smith

asked the Secretary of State for the Environment (1) in the light of the requirement of the Price Commission that cement prices be fixed on an area basis reflecting transport costs, and of the fact that this bears more heavily on construction firms the further north they are situated, and that, because fluctuating contracts are based on national indices, such firms cannot reclaim this increase in cost, if he will now review the system of indices in order to put them on a regional basis;

(2) in the light of the requirement of the Price Commission that cement prices be fixed on an area basis reflecting transport costs, and the fact that this bears heavily on construction firms in Scotland, particularly those in the north, and that because fluctuating contracts are based on national indices, such firms cannot reclaim this increase in costs, if he will now review the system of indices in order to put them on a regional basis.

Mr. Armstrong

The committees which advise the Minister for Housing and Construction on formula price adjustment for building and civil engineering and which include representatives of these industries discussed in February the issue of cement price changes. Introduction of regional indices would run counter to the objective of providing a simple basis for reimbursement and, therefore, neither committee recommended any action at that time.