Hansard

Price Commission (References)

Volume 897: debated on Tuesday 5 August 1975

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Mr. Ovenden

asked the Secretary of State for Prices and Consumer Protection what progress has been made under the proposals for references to the Price Commission which she announced on 17th April.

Mrs. Shirley Williams

The Price Commission has given me reports on two of the references I announced on 17th April, dealing with the prices of diabetic foods and of sanitary towels and tampons. In relation to diabetic foods, the commission says that prices are, in general, higher than for corresponding ordinary foods, primarily because they are more expensive to produce. Diabetic foods are distributed mainly through chemists, so average distribution margins are higher than on ordinary foodstuffs, although lower than is customary in most chemist's business. The commission points out that it is important to ensure that any reductions in the price of the raw materials used in diabetic foods are reflected in future prices.In relation to sanitary towels and tampons, the commission makes certain recommendations in relation to recommended retail prices, which I propose to discuss with manufacturers and distributors. I am arranging for both reports to be published.I am asking the Price Commission to examine and report on two further questions:

  • (a) the effect of movements in the price of raw materials on the retail price of goods and, in particular, to what extent, how quickly and for what reasons the prices of some typical manufactured goods are affected by such movements, with special reference to recent movements in the price of wool, cotton, copper and cocoa.
  • (b) the effect of the Price Code provisions relating to indirect taxes other than VAT on gross percentage margins and net profit margins of distributors of alcoholic drink and tobacco and the question whether, in the light of the circumstances of the trade, any changes in the Price Code are called for and, if so, the effect which such changes should achieve.