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Government-Subsidised Companies (Sales)

Volume 886: debated on Wednesday 19 February 1975

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asked the Secretary of State for Industry what is his policy towards the selling of goods below the cost of production by companies in receipt of Government subsidies.

Subject to the Price Code, prices charged by companies receiving Government financial assistance are primarily a matter for the companies' commercial judgment. A company's ability to sell its products profitably is, however, an important element in the appraisal of viability which is always undertaken when selective assistance is being considered.