asked the Minister for Industry and Commerce if he is aware of the crisis situation caused by his action over the past six months in sanctioning long lists of price increases and his inaction in dealing with the larger lists of price increases which have not been sanctioned; and, if so, if he will indicate the action he intends to take in the matter.
Ceisteanna—Questions. Oral Answers. - Price Increases.
47.
Manufacturers and firms or persons providing services are required by order to give me two months' notice of proposed increases in prices or charges. Applications for increases in prices or charges are first examined in detail by the National Prices Commission who then make their recommendations to me.
In their report for January, 1974, the National Prices Commission gave a breakdown of the annual costs in 615 applications considered by them from 30th May, 1973, to 22nd January, 1974, and went on to point out that of £71.6 million of increased annual costs claimed in these 615 applications, £61.4 million was considered to be allowable and £56.9 million was actually allowed. This means that as a result of the commission's recommendations the prices of the products covered by these applications rose by one-fifth less than they would have risen if the applicants had not been subject to price control and that consumers have to pay £14.7 million per annum less for them than they would otherwise have had to pay.
With a view to moderating the rate of inflation, a package of five orders was introduced by me in June last. Included in this package were orders freezing the cash margins of importers, wholesalers and retailers on a wide range of goods at the levels which obtained on 23rd June, 1973. Another order fixed the maximum retail prices for a specified list of household goods. This was in addition to orders already in force fixing the maximum retail prices for bread and milk throughout the country and for drink in certain towns and cities. The range of commodities for which a price must be displayed by a retailer was also considerably extended. The advance notice required of any proposed increase in prices was extended by order from one month to two months.
In the light of what I have just said I do not think I can be accused of any complacency in the matter of prices. It must be recognised, however, that a significant factor in the inflationary spiral is the increase in import prices of materials and manufactured goods. The Deputy will appreciate that it is not possible for me to exercise control over this.
The remaining questions will appear on tomorrow's Order Paper.