asked the Secretary of State for Prices and Consumer Protection if she will make further regulations with regard to the standard weight of products sold in packets or other containers.

Yes, Sir. It is the Government's policy to add to the list of products sold in prepackaged quantities whenever we are satisfied it should and can be done. We have further orders under the Weights and Measures Act in mind and hope to lay them in the near future.

That is a helpful answer, but is my hon. Friend aware that the greatest confusion is caused by the packaging of biscuits and that this is the source of the greatest consumer pressure? Will he give the earliest priority to this?

I give my hon. Friend that assurance. Biscuits and chocolate will be the subject of early orders, followed fairly quickly, I hope, by wines sold by carafe.

What is the state of consultations on the unit pricing front?

That is a different question. There is another Question about this matter on the Order Paper today. The hon. Gentleman will have in mind that the legislation has not yet been passed, and we are still awaiting its completion.

Will my hon. Friend do something about manufacturers who produce much larger cartons than are necessary? For example, could not cornflakes be encompassed within a much smaller package than is at present available?

The difficulty is that corn flakes quickly become corn powder if they are compressed into too small a package. My hon. Friend will know, however, that it is illegal to use misleading packaging, and if he has in mind instances of packaging grossly misleading to the consumer I shall be glad if he will bring them to my attention.

asked the Secretary of State for Prices and Consumer Protection what further action she intends to take to try and reduce the rising cost of living.

asked the Secretary of State for Prices and Consumer Protection what further action she proposes to take to try to reduce the rising cost of living.

The measures which I have taken since coming into office, including tightening the Price Code, have reduced the rise in the retail price index by some 1½ per cent., and the retail food index by about 4 per cent. I am now considering further subsidies on basic foodstuffs, and when the Prices Bill is enacted I intend to impose maximum prices and retail margins on subsidised foods and to introduce unit pricing orders covering fresh meat, fish and vegetables.

I thank my right hon. Friend for that reply. I am anxious that she should not repeat the disastrous experience of the previous Government. Is she aware that the family expenditure survey for 1973 indicates that food takes about 25 per cent. of the expenditure on goods and services of the average family and that in 1973 expenditure on goods and services by the average family rose to nearly £40 a week, a rise of nearly a week over 1972 for the average family? Is it not urgent that we do not repeat that disastrous experience?

I am obliged to my hon. Friend. We have endeavoured to concentrate Government action on food prices, and I am glad to say that the increase in food prices has slowed down considerably since the present Government came to office.

Does the right hon. Lady realise that she has been waving a ludicrously expensive and ineffectual wand and that the rate of inflation, according to her hon. Friend the Under-Secretary of State, is now running at 23 per cent. per annum—

indicated dissent.

The right hon. Lady waves her head as well as her wand. That information was given in a Written Answer to me on 26th June. Will the right hon. Lady, recognising that the measures she has taken are ineffectual, now come to terms with the fact that it is the lower-paid members of the community who require assistance and that a general hand-out to everyone is not wanted?

The hon. Gentleman should not base his assessment of inflation on one month's figures, which is what he has done in referring to that answer.

Three months.

What the hon. Gentleman has said is not borne out by any figure that I have seen, and I may add that he is not helping the country by giving credence to that sort of alarmist statement. The Government have taken steps through food subsidies, which the hon. Gentleman's party opposes, through the voluntary agreement and in other ways to give special help to the lowest paid, and they are to increase pensions by the largest historic proportion ever next month.

Will my right hon. Friend take it that most of us on this side have found in our constituencies that there is wide acceptance, agreement and support for what she is doing, but will she accept that we are awaiting more particularly a definitive statement on how she intends to use her powers under the Prices Bill to fix maximum prices? Also, will she say something about how she intends to use her powers to prescribe the fixing of lists of fair prices in shops?

I must ask my hon. Friend to await the passage of the Prices Bill—which has not yet received Royal Assent—for most of the answer to that. I have already said that we intend to take early action as soon as that measure is passed to control retail price margins, to set maximum prices which will be displayed in the shops, in the first instance for subsidised products, and to introduce unit pricing for fresh food.

Does not the right hon. Lady agree that inflation at the moment is running at a terrifying rate? None of us wishes to be alarmist but the facts still are, as my hon. Friend the Member for Hendon, North (Mr. Gorst) has said, that if the figures in the last quarter were to be repeated throughout the year the rate of inflation would be 23 per cent. It is running faster than at any time in our history, and since the right hon. Lady took office we have seen a great—

Order. Even for the Front Bench, this is Question Time.

What does the right hon. Lady propose to do about it?

The right hon. Lady would be quite glad if she occasionally got a little support from the Opposition for the things she tries to do. The great difference between the Government and their predecessor is that we at least try to do something about those things that we can do something about and do not sit back wringing our hands and attribute the whole thing to world prices.

asked the Secretary of State for Prices and Consumer Protection if she will make a statement on the recent increase in the cost of living index.

As I said on television on 21st June when the retail price index for May was published, the main factors in the increase of 1·4 per cent. were seasonal changes in the price of vegetables and higher excise duties on tobacco and alcohol.

While that is no doubt true, may I ask the right hon. Lady whether she is aware that the recent quarterly report from regional surveys showed that working-class families in Scotland were the hardest hit of all by the new price increases under phase 3? Is she aware that the report found that the biggest differences between Scotland and the rest of the country were in housing and transport? Since neither of these matters falls directly under her responsibility, will she co-ordinate with her ministerial colleagues to see what can be done about this, particularly as another round of bus fare increases is being proposed by the Scottish Transport Group?

I accept that there are particular difficulties in Scotland and other parts of the country which are remote from urban areas. We are looking at the possibility of constructing regional price indices in my Department.

Is the right hon. Lady aware that although she protests that she is doing a great deal about inflation we might be more ready to support what she is doing if there were any evidence that it was being effective? As the rate of inflation is increasing far faster than it did under the last Government, does she appreciate that we see no evidence of her policy being effective?

The hon. Lady must be aware that there have been substantial increases in oil and raw material prices and that there has also been the three-day working week. The great difference between the period of office of the last Government and that of this Government is that we have taken direct action in respect of basic foods with the result that the food index has dropped each month in terms of the rate of increase compared with the figures for the last administration.

asked the Secretary of State for Prices and Consumer Protection whether the Director General of Fair Trading has recommended changes in the law relating to exclusion clauses in contracts of service.

asked the Secretary of State for Prices and Consumer Protection when she expects to receive the Law Commissioners' report on exclusion clauses in service contracts.

I understand that the Director General accepts, as I do, that any wide-ranging change in the law in this area must await the proposals of the Law Commissions. We are pressing them for the earliest possible report.

Is my hon. Friend aware that that answer is not satisfactory because many of us have been pressing for action on these disgraceful and fraudulent clauses for several years without result? Does he agree that there is no need for any further delay in dealing, for example, with exclusion clauses in the scandalous contracts which are foisted on the public by car parks and similar organisations?

I am sorry that my hon. and learned Friend is disappointed with that answer. It is exactly the same answer as I gave him a short while ago—

That is why he is disappointed.

when I said that the Law Commissions were due to report later this year and that on the basis of their report we would take the earliest possible action. I said that we should have to hold consultations on any alternative action envisaged in the meantime. By the time those consultations were completed the report would be available. It would obviously have been an absurdity to have two sets of consultations running in parallel.

In view of the general dissatisfaction with some of these exclusion clauses, may I ask the hon. Gentleman when he expects the Law Commissions to report? "Later this year" could be almost any time. May we expect the same kind of energy from the hon. Gentleman in office as we had from him when he was in opposition?

I am afraid that my energy is rapidly being drained by the Committee stage of the Consumer Credit Bill. I assure the hon. Lady that whatever energy I have left is very much devoted to this issue. The way in which many operators quite unjustifiably exclude the normal legal protection to which the public are entitled is a scandal. What I want and what I suspect the House wants is that at the end of the day we should have a comprehensive approach to this matter which will ensure consistency over the whole service area.

asked the Secretary of State for Prices and Consumer Protection what representations she has had from the CBI concerning the operation of the Price Code.

Since taking office I have had a continuous exchange of views with the CBI and other organisations on the developments in prices policy and the operation of the Price Code.

In any future talks may I ask the right hon. Lady to remember the vital importance of maintaining investment in British industry? Would she not agree that this is vital for our future economic prosperity, including the prospect of employment?

I accept that investment is a legitimate target for the whole community, including the private sector. I shall be making an announcement later this week about the Price Code review.

asked the Secretary of State for Prices and Consumer Protection when she proposes to start her consultations upon the new Price Code.

I hope to make an announcement after the enactment of the Prices Bill about the arrangements for the review of the Price Code.

Will the right hon. Lady tell us roughly what will be the time scale of her consultations and, assuming that there has not been a General Election by that time, when she proposes to come forward with new measures to replace the present Price Code?

I appreciate that there is urgency in this matter. I assure the hon. Gentleman that as soon as the Prices Bill becomes law I shall make an immediate announcement to the House giving full details. I hope that that may be later this week, subject to the will of the other place.

Will the right hon. Lady give us an assurance that in her new Price Code, if we have to have such a thing, there will be no provision for profit-margin controls on home sales? If she persists with profit-margin controls on home sales she must realise that the burden on the balance of trade resulting from goods being directed for sale abroad which are needed at home will be intolerable.

The hon. Gentleman is showing some impatience. He has a Question on the Order Paper about this matter.

asked the Secretary of State for Prices and Consumer Protection if she will make a statement about the progress of her review of the Price Code, with particular reference to the contribution made by the code to the balance of payments deficit.

I am shortly making an announcement about the Price Code review. If the hon. Member or any other person has factual evidence that domestic price controls are having an adverse effect on the balance of payments, I shall be glad to consider it. At present I have no such evidence.

May I suggest to the right hon. Lady that, if she ignores the evidence accumulating before her eyes for very much longer, she will find that the Price Commission has imposed an intolerable burden on a trade deficit which the country cannot sustain? To take one further example, will she look at the situation of trade in wrought nickel, to which my hon. Friend the Member for New Forest (Mr. McNair-Wilson) drew attention the other day?

I am prepared to look at any authentic evidence that the balance of payments is being affected by the Price Code. But, since price controls were introduced, exports have increased by 45 per cent. in value and 16 per cent. in volume. If things went on improving like that we should soon be out of our balance of payments difficulties.

Is my right hon. Friend aware that her policies of price control make a direct contribution to industrial peace and that the frustrated housewife who has seen prices rising now sees that they are not rising quite so rapidly? Is she aware, further, that this is a measure which is supported by the TUC, the CBI and everyone else who wants to see Britain out of the threat of inflation—except some elements of the Conservative Party?

I am grateful to my hon. Friend. I might add that there is substantial evidence to show that making higher profits in the export market than in the home market is very much in the national interest.

In the review of the Price Code which is referred to in this Question, has the right hon. Lady met the widespread representations which I believe exist in industry that the present threshold payments are causing considerable erosion of profit margins and the potential for future investment by virtue of the diminishing ability of industry to absorb 50 per cent. of such wage increases in a productivity arrangement? Is she sympathetic to that view?

The hon. Gentleman will be aware that my right hon. Friend the Chancellor of the Exchequer has informed the CBI and the TUC that, for the time being, the 50 per cent. productivity deduction introduced by the previous administration must continue but that this does not prejudice whatever decisions may be reached in the price review.

On a point of order, Mr. Speaker. In view of the downright ignorant nature of those replies, I beg to give notice that I shall seek an early opportunity to raise the matter on the Adjournment.

The hon. Gentleman knows that that is not the acknowledged form of words.

asked the Secretary of State for Prices and Consumer Protection how many, and which, of the commodities announced to be on permanent promotion under the voluntary agreement with food retailers have been on offer during the past few months.

Neither the Government nor the trade keeps a central record of promotional offers but it is probable that, along with other less essential items, they have all been on temporary offer at various times.

Is the hon. Gentleman aware of advertisements put out by certain retailers purporting to suggest that the offers being made are as a result of Government policies when those offers have been on more or less permanent display as part of the retailer's previous advertising over a long period of time? As I am sure he would not wish to mislead the housewife, may I ask him to take early action about this?

It appears to me that the hon. Gentleman is not suggesting that I am misleading the housewife but rather that the Retail Consortium is doing so. If that is what he is suggesting we will look at it carefully. I must rebut the suggestion, however. The evidence is quite the other way.

asked the Secretary of State for Prices and Consumer Protection to what extent she has received evidence that her voluntary code is being observed by the retail food trade.

asked the Secretary of State for Prices and Consumer Protection whether she will make a statement on the working of the voluntary agreement, announced by her on 12th June, for retailers to make available a low-budget shopping basket of basic foodstuffs and other goods.

asked the Secretary of State for Prices and Consumer Protection what evidence she has that her voluntary code is being observed by the retail trade.

A number of the larger multiples, co-operative societies and voluntary groups have already announced the extension of existing offers or the introduction of new ones on items covered by the voluntary agreement. It will naturally take a little time before the full effects of the agreement are seen.

Is the right hon. Lady aware that, according to the latest figures available, 98·9 per cent. of retail food shops are not subject to the Price Code amendment and that of the remaining 1·1 per cent. only about one in 10 is operating her voluntary code? Since, therefore, only ·01 per cent. of all retail food shops are operating her code, would she agree that the claims she made about the significance of this measure were exaggerated and would be better described as "Shirley's box of tricks"?

I am absolutely astonished by what the hon. Lady has said because it is totally untrue. The Retail Consortium purports to represent 85 per cent. of the retail trade. It has informed me that the agreement applies to all its members. If the hon. Lady really supposes that 85 per cent. of the trade is done by 1·1 per cent. of the shops, she is under an amazing illusion. In addition, she is in effect repudiating the efforts of her right hon. and learned Friend the Member for Surrey, East (Sir G. Howe) when he sought an agreement on exactly the same lines as I have managed to get.

Is my right hon. Friend aware that there are many dispassionate people, not only in this House, who believe that she is doing a first-class job and is fulfilling the promises made by Labour during the last election? Can she advise the House when the lists are to be published indicating the goods which will be subject to voluntary agreement?

I thank my hon. Friend for his initial comments. I sometimes have the impression that the Opposition cannot decide whether they want anything to be done about anything or whether they would prefer action to fail. We are moving as rapidly as we can on this. I have the assurance of the Retail Consortium with regard to the voluntary agreement that it will seek to introduce as rapidly as possible the labelling of all goods subject to voluntary agreement so that household shoppers may know exactly what they are getting and that margins are being held down on these goods.

Does not the fact that the vast majority of these items have been on offer at promotional prices for a long period of time—so that the scheme will not have any effect on retail prices—indicate the sheer futility of such a move in attempting to achieve cost-of-living reductions? Would it not be more open to acknowledge that this scheme is nothing more than a one-day wonder?

First, about 60 per cent. of the trade as distinct from the number of shops is affected by the 10 per cent. cut, and the purpose of the voluntary agreement was to concentrate those cuts which had to be made because of the amendment to the Price Code on the most essential goods.

Does my right hon. Friend realise that when there are announcements such as that which was made over the weekend about the reduction of prices in the London metal market it must follow that her endeavours to lower prices. because they are combating inflation in the interests of the British people, will cause great anger among Conservative Members, and that the more anger we get from them the more successful her policies are?

My hon. Friend's remarks need no comment from me.

Does not the right hon. Lady agree that at a time when commodity prices are falling it is all the more disappointing that there should have been record price increases in the last couple of months?

First, the increase in the food index last month was the lowest for several months. Secondly, I have the word of the Chairman of the Retail Consortium that in his view the voluntary agreement is working, but we are both agreed that it should be more widely publicised than has been possible in the short period of three weeks.

asked the Secretary of State for Prices and Consumer Protection what review she has recently made of the operation of the bread subsidy; and if she will make a statement.

We are keeping the operation of the bread subsidy under continuous review.

Is the hon. Gentleman aware that I wrote to the Secretary of State on 30th May enclosing a letter from my constituent Mr. Parker-Brown, writing on behalf of 30 owners of grocery businesses in the area, in which he expressed the view that the subsidy was being used by the bakers to offer to large retailers very large discounts which they were denying to smaller retailers? Is the hon. Gentleman further aware that this view is widely shared? When may I expect a reply to my letter?

I have seen the correspondence which the hon. Member has had with the Director General of Fair Trading. But I cannot accept—I have made this clear before—that the level of discount allowed has been influenced by the existence of the subsidy. The practice of discounting is not new. The rate of the subsidy was determined following the Price Commission's examination of the price notifications by the major plant bakers and reflected the amount that the industry would otherwise have been able to recover from the market.

asked the Secretary of State for Prices and Consumer Protection what proportion of the increase in the United Kingdom retail price index for food since January 1973 is attributable to membership of the EEC.

asked the Secretary of State for Prices and Consumer Protection what proportion of the increase in the United Kingdom retail price index for food since January 1973 is attributable to British membership of the EEC.

The increase in the United Kingdom retail price index for food attributable to our membership of the EEC is currently estimated to be between ½ and 1 per cent. But the House will realise that the further we move from the date of entry the more difficult it becomes to assess what prices might have been had we stayed outside the EEC.

I accept what the Secretary of State says, but does she not agree that there is a terrible misconception about food prices in the Common Market? Would she not be serving the country well by letting the true facts be known about what is happening? Does she agree that if we were to leave the EEC it would be bound to lead to increases in food prices far greater than those we have had? Will she recall her words of a few minutes ago when she said that someone was not helping the country by giving credence to false figures?

The price of grain and sugar is lower at EEC levels than at world price levels, but the price of dairy products is higher at EEC levels than at world price levels. It is impossible for us at this stage to judge the future movement of world prices and, while it is true that the common agricultural policy has not had the effect on food prices which it was believed in some quarters it would have, renegotiation of the CAP to stop it acting as a ratchet mechanism against the fall in prices is a very important national objective.

Will my right hon. Friend bear in mind that we do not want guidelines from the Common Market to stop us reducing our prices? It is important that we should disregard the CAP wherever it is damaging to our economy, as undoubtedly it is on many matters.

I accept that where the CAP acts against a fall in market prices it is important to renegotiate it, and beef is an example of how these things can go wrong.

Is the right hon. Lady aware that my right hon. Friend the Member for Grantham (Mr. Godber) proposed last November some radical changes in the CAP which would have had the effect to which she has just referred and that at about the same time the Commission published a substantial document for the same purpose?

The Commission's document, which I believe had the support of the right hon. Member for Grantham (Mr. Godber) and, for that matter, of my right hon. Friend the Minister of Agriculture, Fisheries and Food, indicated that the most efficient farms should be the basis of CAP prices. I think that, regardless of party, we would all endorse that objective since it would be not only in the British national interest but in the long-term interests of the efficiency of agriculture throughout Europe.

Does my right hon. Friend agree that the average amount spent on food in Common Market countries is considerably higher than it is in this country and, therefore, that harmonisation with the EEC must have a deleterious effect on wage earners in this country?

My hon. Friend is right in the sense that the price levels for food in Britain are well below those which were common in Europe before we entered the Common Market. The problem which none of us can estimate accurately is how far the situation would change back to what it was when we joined. That is a matter for argument which I do not wish to enter into now.

asked the Secretary of State for Prices and Consumer Protection what contingency plans for rationing she has.

None, Sir.

Is the hon. Gentleman aware that the estimates of the future supplies of milk and butter are predictably well down? Does he agree that if price controls force down production the only result can be the Socialist Utopia, namely, rationing?

It is known that milk supplies from our farms during the rest of this year are likely to be somewhat less than they were last year, but there is no indication that we are heading for an overall shortage. We are dependent on imports for about 80 per cent. of our butter supplies, and although home production and New Zealand supplies are likely to be reduced this year imports from Community countries are available and supplies are expected to be adequate.

Does my hon. Friend agree that the Opposition showed great expertise in rationing—rationing by the purse—when they were in office and that they have driven fresh meat, butter and a great many other essentials off the table of many poor families? Will he make clear that we shall ensure that the same thing does not happen under the present Government and that if there is any failure in the voluntary agreement the Secretary of State will use her powers under the Act to control prices?

It was with those considerations in mind that my right hon. Friend introduced subsidies on the more important items in the food basket of the less-well-off sections of the community. The Opposition are not helping the situation by crying "Wolf, wolf".

asked the Secretary of State for Prices and Consumer Protection what underlying rate of inflation her arrangements to stabilise prices are calculated to withstand.

The Government inherited an unacceptable rate of inflation. The measures I am taking are designed to moderate it. I have never claimed more than this.

Will the right hon. Lady say whether her Department is making additional contingency plans to deal with the rate of hyper-inflation which we now have, or does she intend to remain dormant like a political Sleeping Beauty awaiting the kiss of a General Election?

I find the Opposition's attitude extraordinary. When I do anything, they say that it is either false, misleading or humbug. When I do nothing, they say that I am sleeping, like a version of the Sleeping Beauty. The hon. Gentleman had better make up his mind whether he wants me to take action or whether he does not. The Government's view is that we should take action wherever we can. I have already described to the House the actions we propose to take when the Prices Bill becomes law, something which would have happened rather quicker if we had had the full co-operation of the Opposition.

In view of the fall in commodity prices, would not the right hon. Lady be better able to help widows and pensioners if she pressed the Chancellor of the Exchequer for tax reductions and better able to help people on small incomes if she pressed the Secretary of State for the Environment to make the water rate rebatable?

The hon. Gentleman has certainly kept me busy with requests to my colleagues. I suggest that he might like to put the questions direct to them.

Is the right hon. Lady aware that the Opposition in no way obstructed the passage of the Prices Bill? We came to an agreement with the right hon. Lady and we stuck to it. The date was met on every occasion. It is unfair and misleading for her to suggest that the Opposition delayed the passage of the Bill. We ask her to do something about prices which are rising now at a far faster rate than when she came into office.

The hon. Gentleman is aware that there are considerable distinctions between the ways in which prices are rising and that there are factors such as the impact of oil prices on the cost of travel and transport which it is difficult to control. The hon. Gentleman's Conservative Government left an extremely dangerous heritage, not least in respect of vast deficits in the nationalised industries which they said they would have had to look at had they stayed in government any longer.

asked the Secretary of State for Prices and Consumer Protection what recent discussions she has held with representatives of food retailers.

I have recently held discussions with representatives of the food retailers on the voluntary agreement to hold the prices of essential goods.

I thank the right hon. Lady for that reply, but is she aware of the increasing pressure on the margins of food retailers? May I draw her attention to the article which was published on 3rd July in The Times which suggested that since the Government came into office the pressure on margins had been extremely severe? May I quote from the article—

Order. The one thing the hon. Member may not do is to quote.

May I, therefore, not quote but merely mention to the right hon. Lady that the margins on food retailing prices have fallen to 1·6 per cent.? What does she propose to do about it in view of the loss of confidence in investment in that sector?

The hon. Member for Pudsey (Mr. Shaw) and the hon. Member for Southend, West (Mr. Channon) might get together and decide whether they want higher profits or lower prices. There are conflicts between the two. As I have made clear to the trade on more than one occasion, in a period of serious inflationary pressure—I have never doubted that that has been the position of the country for the last 18 months—and in a period when the net take-home pay of most of our people has actually fallen after tax, it is right and proper that retailers and the trade should themselves make a sacrifice in respect of lower margins.

Does my right hon. Friend realise that there is a great deal of appreciation of the fact that she has succeeded in obtaining the co-operation of the Retail Consortium? Will she reject utterly the claims being made by the Opposition that the consortium is not cooperating in the voluntary agreement?

In thanking my hon. Friend, I say right away that the Retail Consortium knows that my view is that action will have to be taken under the Prices Bill when it becomes an Act if the voluntary agreement does not operate. I am satisfied that the consortium is doing its best to operate the agreement. In trying to suggest that it is not and that I cannot count on its word, the Opposition are doing nothing but bringing nearer the very statutory controls which they do not want.

asked the Secretary of State for Prices and Consumer Protection if she will request the Price Commission to institute an inquiry into the price of beer and the profits of the industry.

Increases in the price of beer are firmly controlled by the Price Code, and the Price Commission has intervened in several instances to ensure that it is strictly applied. There have, however, been very large increases in the cost of producing a pint of beer. Brewery profits have been related to greatly increased turnovers, not only of beer. Clause 3 of the Prices Bill does of course give the Government certain further powers exceptionally to control price increases.

Does my hon. Friend accept that the profits of the top seven brewers between 1969 and 1973 went up from £136 million to £275 million? As beer is an important part of the diet of my constituents, will my hon. Friend realise the importance of keeping the price down, the profits down and the strength up? Will he look again at the Monopolies Commission's report on beer and remedy some of the abuses indicated in that report?

Brewery profits need to be looked at carefully. They relate to other products as well as to beer and sometimes include operations abroad. The total turnover has increased considerably. The full impact of increased costs has been felt since the last complete year. Those increased costs include an increase in the price of malt and barley of about 80 per cent. The later interim results we have seen have tended to show lower profits as a percentage of turnover, reflecting the operation of the Price Code.

Will the hon. Gentleman show as much concern for milk as he appears to show for beer? Despite what he said to my hon. Friend the Member for City of Chester (Mr. Morrison), the consumption of milk is going up while production is going down.

The hon. Gentleman will acknowledge that the price of milk has come down.

Does my hon. Friend agree that the original Question is one of some gravity, and will he do something to ensure that the drinking public know what the gravity is?

I know that this is a matter of some controversy, but quality must be a subjective assessment. Gravity is an indication of strength and that is often taken to be synonymous with quality. The gravity of beer has not changed significantly over the past 20 years.

asked the Secretary of State for Prices and Consumer Protection on what goods unit pricing will be required; and when it will be introduced.

The first goods which I have in mind for unit pricing are fresh meat, fish and certain vegetables. I anticipate that others will follow in due course. I am discussing the practical problems on this first list urgently with the trades affected and hope to be able to make the orders as soon as possible after the Prices Bill has become law.

May I congratulate my right hon. Friend on her success in the action she is taking, in which the previous administration failed? When my right hon. Friend frames the new orders, will she deal with the special problems which face small shopkeepers? If she is taking vegetables into account, will she also include fruit? In that way she may perhaps include the sour grapes of the Conservative Party.

We are looking closely into the problems of small shopkeepers. We are concerned that many small shopkeepers are speciality traders, such as greengrocers and butchers, and to exclude them from the effects of unit pricing would be to undo some of the benefits of that scheme. We are specifically consulting organisations that represent small shopkeepers with a view to trying to minimise the trouble to them. We believe that unit pricing needs to be a universal system, and we shall look sympathetically at my hon. Friend's proposal with regard to fresh fruit.

Will the right hon. Lady repudiate the rather partisan suggestions of her hon. Friend since this legislation was an all-party measure which was before the House under the Conservative Government? Has she yet decided whether marketing should be on the shelves or on the products?

The hon. Gentleman may remember that in his earlier incarnation his Bill was defeated by Tory objection, and he should recognise that a minority Labour Government have had the pleasure of getting it on to the statute book. We are discussing with the trade details of labelling, and I do not think the hon. Gentleman wishes me to anticipate the results of that consultation, which is genuine, because we want to take into account all the views and concerns expressed by people on this issue.

Is the right hon. Lady aware that she is being less than honest if she does not mention that the Bill was twice defeated by the hon. Member for Fife, Central (Mr. Hamilton)?

That is not true.

Is the right hon. Lady also aware that her original reply was disappointing? With the new change to metrication on sugar, unit pricing will be important. Since her hon. Friend the Minister gave an undertaking on this subject, will the Secretary of State give the House reassurance on this topic?

I give notice, Mr. Speaker, that I shall raise a point of order at half-past three.

The hon. Lady will recall that my hon. Friend the Member for Swansea, West (Mr. Williams) strongly supported unit pricing in the name of the official Opposition during the last Parliament. That measure reached the statute book with all-party support. On the question of sugar she will be aware that there are orders concerning sugar, particularly the metrication of sugar, in another place. This must be considered alongside any move towards unit pricing.

asked the Secretary of State for Prices and Consumer Protection by how much the retail price index has risen in the three months from March to May this year, inclusive; and what were the figures from July to September 1970, inclusive.

During the three months ending in May the retail price index rose by 5·8 per cent. This compares with an increase of 0·4 per cent. in the three months from July to September 1970. It should be remembered, however, that the RPI is not seasonally adjusted. Seasonal food prices are an important factor in the calculation of the index. In the period February to May 1974 seasonal food prices rose by 9·5 per cent. whilst in the period June to September 1970 they fell by 13·7 per cent.

I thank the Minister for his answer, but I also note his excuses. The Labour Government have been busily proclaiming that they have taken action to deal with food prices, but they must accept responsibility for the appalling comparison between the first three months of the Labour Government and the first three months of the Conservative Government.

I am astonished that the hon. Gentleman has the effrontery to put before the House a figure of price increase of 0·4 per cent. in the first three months of the Tory Government's existence, while overlooking the fact that when they left office they left Labour to deal with price increases of 15 per cent. to 20 per cent. This is a clear indication of deterioration and lack of economic understanding by the then Conservative Government.

Will my hon. Friend publish the facts concerning the extent to which the three-day working week may have adversely affected the situation? Can he say whether the increase in oil prices had any effect on it?

I am sure that my hon. Friend is correct. The three-day week was still in existence when we took office. Furthermore, we have had to contend with increases in oil prices, which contribute to inflation. Then there is the effect of value added tax, which was introduced by the Conservative Government, together with a 20 per cent. devaluation, which meant a reverse from a surplus of £1,000 million to a £1,400 million deficit.

Can the Minister say whether the rate of inflation is getting better or worse?

If it gets better, it will be no thanks to the Conservative Party.

Do not the figures given in the answer suggest that a period of three months after six years of Labour Government is a much easier period to manage than a period of three months after four years of Tory Government?

It appears that the Opposition expect us by a stroke of the wand in three months to achieve something which the Tory Government failed to achieve at a stroke in three and a half years.

asked the Secretary of State for Prices and Consumer Protection whether she can give an up-to-date estimate of the effect on the retail price index of Government measures announced in the last four months.

During the three months to May the retail price index has risen by approximately three-fifths of 1 per cent. as a result of measures taken by the Government. This does not take account of the cut in distributors' permissible gross percentage margins, which did not come into effect until 6th May, and which I expect to reduce prices in the shops by about a further 1 per cent.

Does the right hon. Lady realise how pleased Conservative Members are to be able to press her on so many matters in the face of the total inability of the Liberal Party to press her on the rise in prices to the housewife? Will the right hon. Lady say whether, in the coming three or four months, she expects this Government's policies to continue to fuel the inclination of prices to rise in the shops?

I am sure that we are all impressed by the willingness of the Liberal Party not to see prices and consumer protection as a matter of importance, and I think that most hon. Members will regard Liberal Members as living in a happy, if an unrealistic, state in not being present for these Questions. As regards the other part of the hon. Gentleman's supplementary—[Interruption.] I am pleased to see that one Liberal Member has made an appearance—[Interruption.]

Order. The House must restrain its transport of delight so that we may get more Questions answered.

In the face of that excellently timed entrance, I trust that we shall be able to consider further at this Question Time the fuelling of additional prices.

asked the Secretary of State for Prices and Consumer Protection by how much the food index rose compared to the previous year in January 1974 and in each month since then.

In the year ending January 1974 the food index rose by 20·1 per cent. The comparable figure for February was 19·1 per cent. The annual rate of increase has since fallen to 18·1 per cent. in March, 17·7 per cent. in April and 17·2 per cent. in May.

Will my right hon. Friend comment on the reason for this favourable trend in food prices? Could it have anything to do with the policies which the Labour Government have been pursuing, particularly in regard to food subsidies?

Yes, it has everything to do with that because the effect of food subsidies on the food index, so much scorned by Conservative Members, amounts to four points on that index. In addition, it is estimated that a figure of between 2 and 3 per cent. will flow from the cut in subsidies and the concentration on food commodities.

asked the Secretary of State for Prices and Consumer Protection what was the rate of increase in the price of food in each of the last six months.

The percentage increase in the food index in each of the last six months—that is, beginning with December 1973—has been as follows. 1·7, 2·9, 0·9, 1·1, 1·2 and 1·3.

Do not these figures suggest that my right hon. Friend has done what the Conservative Government promised to do and has reduced the rise in food prices? Is she aware that despite the difficulties housewives will support her in doing something about food prices, whereas the Conservative Government not only did nothing to keep them down but aided and abetted in keeping them up?

The hon. Member for Christchurch and Lymington (Mr. Adley) compared three months of Conservative Government with three months of Labour Government. A fairer comparison would have been the last three months of Conservative Government and the first three months of the present Government. The comparison shows that food prices increased by 5·7 per cent. in the last three months of Conservative Government and by 3·6 per cent. in the first three months of the Labour Government—less than two-thirds as much under Labour.

Has the right hon. Lady seen the Daily Mirror "Shopping Clock" and the Financial Times grocery price index, both of which last week showed for this month the biggest rises ever?

The hon. Gentleman cannot quarrel with these official figures, accepted by all parties. The Grocer figures cite individual sectors and brands and are no guide to the true overall effect of the food index which I have just given. If the hon. Gentleman is questioning the authenticity of the official figures which I have just given to the House, he should say so.

asked the Secretary of State for Prices and Consumer Protection if she will now introduce subsidies to cover those foodstuffs essential for the diet of diabetics.

I am very sympathetic with diabetics who have to face many practical problems in their day-to-day lives. However, the special diets prescribed by the medical profession normally include some or all of the subsidised foods. Diabetics are therefore already benefiting from the Government's measures, and I do not think it would be appropriate to introduce new subsidies specifically to meet their requirements.

Does not the Minister recognise that a diabetic is limited in choice and in his range of products and cannot shop around? Does he appreciate that last week the price of a 7-oz. pot of marmalade increased by a whole penny? If we are to protect this special group, does he not agree that it will be necessary to look again at this question and not dismiss the problems of diabetics since they are a group of people who have had to bear the full brunt of inflation without any protection?

I am aware that diabetic preparations are more expensive than comparable foods made for general use. This is inevitable in a small, specialist market. I have drawn the Price Commission's attention to a number of specific complaints in this sector. I am advised that diabetics do not necessarily have to rely on products specially prepared for them but can have an ordinary though strictly regulated diet.

asked the Secretary of State for Prices and Consumer Protection what are her plans for establishing local centres to protect and inform customers.

On 14th June my right hon. Friend had a useful discussion with the local authority associations about the development of consumer advice services. There are now about 35 local authority centres; on present plans 40 more will be open by March 1975 and a further 100 by the end of that year.

In view of the financial difficulties facing some local authorities will my hon. Friend circulate to authorities details of mobile consumer units which operate successfully in some parts of the country and which could provide consumer advice over a large part of an authority's area?

I am grateful to my hon. Friend for that suggestion. This is one of many ideas being discussed between the Department and various authorities. I might add that the expenditure on advice centres is taken into account for rate support grant purposes.

How is recruiting going among the League of Labour Women?

I imagine that it is doing very much better that it is among the Primrose League.

As well as protecting the customer in the shop in terms of prices, will my hon. Friend give protection to consumers generally? Will he bear in mind the case of an old couple m my constituency who have been stripped of £600, being the cost of the fare to Australia, which they had to forfeit because unavoidably they were unable to go? Will my hon. Friend bear in mind that shipping companies like Chandris Shipping Lines Limited require also to be put in a position where they cannot behave in this manner? Will he give this sort of protection as well?

On the general position of protection, the programme which my right hon. Friend has announced is much bigger than any programme considered by the previous administration. As for my hon. Friend's specific point, I congratulate him on his ingenuity on adding it as a supplementary question at this stage. However, if I attempted to answer it now I feel that I should attract Mr. Speaker's wrath since the same subject is down on the Order Paper as Question No. 35.

asked the Secretary of State for Prices and Consumer Protection what is the underlying rate of increase in motor car prices.

In the six-month period from December 1973, increases in prices recommended by the principal United Kingdom car manufacturers for home sales ranged from 17·2 per cent. to 194 per cent.

Does the hon. Gentleman agree that if the rate and frequency of price increases for family cars continue, there may be great difficulty over domestic sales, with serious economic consequences for the industry? Will he seek an early meeting with the Society of Motor Manufacturers to discuss this matter further?

My Department is always willing to consider representations from manufacturers about the impact of Price Code provisions upon their industry.

asked the Secretary of State for Prices and Consumer Protection what further proposals she has for subsidising food.

We have recently announced the Government's in tention to subsidise household flour, and shall inform the House as soon as possible of any further detailed proposals

In view of the rise in retail prices which, even if it is not as great as it might be, cannot give anyone reason to be complacent, does the right hon. Lady agree that there may be something to be said for applying subsidies to the cost of certain raw materials which producers use—rather on the lines of farmers and feeding stuffs—as a more cost-beneficial way of getting down the price of food?

I do not rule out the importance of producer subsidies as well as consumer subsidies. My right hon Friend the Minister of Agriculture, Fisheries and Food has recently reintroduced the lime subsidy, sustained the pig meat subsidy and indicated certification procedures which are showing signs already of stabilising the beef market. I accept the spirit behind the hon. Gentleman's question—that the long-term pattern of prices, which is closely related to producer subsidies, is as important as the short-term, which is related to consumer subsidies.

asked the Secretary of State for Prices and Consumer Protection if she will seek powers to provide assistance to passengers of shipping companies who are being faced with forfeiture of fares because of unavoidable cancellation.

I am consulting the Director General of Fair Trading under Section 2 of the Fair Trading Act 1973 on what action might be taken on the question of fares.

May I ask my hon. Friend whether he thinks that this would be of any assistance to the old couple in my constituency—Mr. and Mrs. McMillan—who have been deprived of £599·50, sacrificed at the behest of Chandris Shipping Lines Limited, whose chairman will not even speak with me on the telephone? Is not it disgraceful for any firm to behave in this way, more especially one which seems to be run by Greeks and which has most of its shares registered in Guernsey, thus avoiding tax in this country?

They are Greek Tories.

I am grateful to my hon. Friend for bringing this matter to my attention. He will appreciate that I must now await a reply from the Director General.

asked the Secretary of State for Prices and Consumer Protection what representations she has received about the rising cost of holidays in the United Kingdom.

I have received no general representations. However, individual complaints about price increases are a matter for the Price Commission.

Does that not indicate how remote the Department is on these matters? As the cost of holiday-making is increasing at a rapid rate, does the hon. Gentleman agree that the Government could take a considerable amount of action to alleviate the situation? For example, petrol prices have increased by 65 per cent. in the last 12 months. Will the hon. Gentleman ask his right hon. Friend the Chancellor of the Exchequer to reverse his Budget decision and, when he comes to the mini-Budget, to reduce the price of petrol to help holiday-makers?

The hon. Gentleman will appreciate that the massive increase in the price of petrol was due to factors outside this and the previous Government's control. I am sure that he would not expect this Government to accept responsibility for changes in world oil prices. However, the hon. Gentleman is free to make whatever representations he wishes to my right hon. Friend the Chancellor of the Exchequer.

On a point of order. Mr. Speaker. The hon. Member for Gloucester (Mrs. Oppenheim) indicated in a supplementary question on Question No. 18 that I had twice objected to the Unit Pricing Bill. That is untrue. Even if it were true the hon. Lady would not know, because she is never here on a Friday.

Further to that point of order, Mr. Speaker. It is true that it was not objections by the hon. Member for Fife, Central (Mr. Hamilton) which prevented the Unit Pricing Bill from reaching Committee. I should like that firmly on the record. Nevertheless, on a number of Fridays when I was here the hon. Gentleman indulged in certain delaying tactics. This will no doubt redress the balance.

I think that after that exchange we should proceed to the Private Notice Question.