§ Mr. Wainwrightasked the Secretary of State for Employment what representations he has recently received 364W proposing that the status in the retail price index of interest paid on mortgage be altered; and if he will make a statement.
§ Dr. McDonaldasked the Secretary of State for Employment if he intends to exclude mortgage interest rates from the retail price index; and if he will make a statement.
§ Mr. Alan ClarkMy right hon. Friend and I have received no such representations but are aware that the Building Societies Association has recently questioned the inclusion of mortgage interest in the retail prices index.
As indicated by my right hon. Friend in his reply to my hon. Friend the Member for Bury, North (Mr. Burt) on 6 June at column 171, we have asked the retail prices index advisory committee, inter alia, to re-examine the treatment of housing costs in the index. In its report of February 1975, [Cmnd. 5905], the committee said that its recommended approach to owner occupiers' housing costs should be
reviewed in a few year's time in the light of experience".The committee is expected to report later next year. Meanwhile we have no plans to make any changes in the coverage or method of construction of the index.