asked the Secretary of State for Prices and Consumer Protection what has been the increase in the Retail Price Index in the last three months.

asked the Secretary of State for Prices and Consumer Protection what has been the rise in the Retail Price Index in the past two months.

asked the Secretary of State for Prices and Consumer Protection by what percentage the Index of Retail Prices has increased since February 1974.

In the last two-monthly and three-monthly periods, the increases were 2·6 per cent. and 3·9 per cent. respectively. The Retail Price Index increased by 47·3 per cent. between February 1974 and February 1976, the latest month for which information is available.

May I congratulate the right hon. Lady on her new appointment as Paymaster-General, which will enable her to personify the link between pay and prices? Does she recall that the Prime Minister spoke last week of the need for Ministers to tell the truth and explain the facts? In the light of the figures she has just given, will she reconsider her view that the rate of inflation is not twice but only somewhat above that of our major competitors?

I trust that I can rely on the Opposition not to give the impression that being Paymaster-General is the same as being "Minister for Pay", for otherwise, I suspect, I shall not last in that job for more than a few days.

In view of the possible fruition of the Government's policy, can my right hon. Friend say whether there will be just as dramatic a fall in prices as there has been a dramatic rise over the past few years?

In the past 12 months there has been a very dramatic fall in the rate of inflation on a six-monthly basis, which is the best way we can take it at present. I have every reason to think that this fall will continue for the next few months, which is as far ahead as I dare predict.

Does not the right hon. Lady agree that within the next month or so we shall be paying 50 per cent. more in the prices in the shops than we were paying when the Government took office? Have any other Government in this country presided over inflation at such a rate?

The hon. Gentleman must be aware that there has been no precedent for a rate of inflation in the whole industrial world like that which has taken place since the rise in oil prices in 1973 and the commodity price boom which went with it. It is not helpful to the country nor to an understanding of our problems to pretend that this situation is unique to the United Kingdom, because it is not.

Is my right hon. Friend aware that her new appointment has given very great pleasure to all of us on this side of the House, who are extremely pleased at the way in which the rate of inflation has been reduced, and that we wish to congratulate her on the part she has played in that reduction?

I thank my hon. and learned Friend, but it would be quite improper if I were not to say that a very great part of what we have been able to achieve in the counter-inflation policy has been due to the people of the country and not just to individual Ministers.

Is the right hon. Lady aware that the Opposition wish to be associated with the warm congratulations offered to her? Is she further aware that in these days of "Women's Lib" we are reassured that she has not announced that she wants to be known as "Pay person-General"? But, however warm and sincere our congratulations on a personal level, they cannot be extended to the right hon. Lady's record on prices over the past two years.

I toyed with the idea of being "Paymistress-General" but thought that it might be misunderstood.

asked the Secretary of State for Prices and Consumer Protection whether she will publish the percentage rise in retail prices from 1951 to 1964, from 1964 to 1970, from 1970 to 1973 and from February 1974 to the latest available date.

The figures corresponding to these periods are 54·8 per cent., 31·0 per cent., 28·0 per cent. and 47·3 per cent. respectively.

Will the Minister consider omitting from the RPI the cost of tobacco and cigarettes, as there are strong health and medical reasons for increasing their prices and the fact that these commodities are included in the RPI may prevent that?

The Retail Price Index is a long-established measure of prices of goods bought. It is a matter for my right hon. Friend the Secretary of State for Employment to consider the items in it, but for my part I think that it would be dangerous to do that to which the hon. Gentleman's Front Bench colleagues have drawn attention—fiddle with the RPI.

Is the hon. Gentleman aware that I share his right hon. Friend's view that statistics covering a comparatively short period are not as reliable as those covering longer periods, and that the figures he has just given show that the rate of inflation has risen by the same amount during eight years of Labour Government as during 16 years of Conservative Government? Therefore, prices rise twice as fast under Labour Governments as under Conservative Governments.

The hon. Lady must be aware that since the war Labour Governments have followed Conservative Governments who have left us with legacies, such as the threshold of stage 3, for which her party must bear full responsibility. I agree with her that one should resist the temptation to be involved in captious quiddities about figures.

asked the Secretary of State for Prices and Consumer Protection what steps Her Majesty's Government are taking to strengthen consumer protection within the EEC.

We have played an active part in the preparation of the Community consumer protection and information programme and are participating fully in discussions on a number of proposals designed to benefit consumers throughout the Community. Officials of my Department have also recently met representatives of the Commission and of other member States to discuss priorities for the future.

What are those priorities?

In the Community they cover five basic areas—health and safety, economic interests, the redress of grievances, information and education, and representation. The Government have suggested that priority should be given to measures of the widest importance which make the best use of the Community's limited resources, including particularly measures to help reduce accidents in the home on a Community-wide approach, automatic means of labelling and pricing goods and the exchange of information on the best ways to collect and disseminate price information to consumers. However, we attach the highest importance to a strengthened role for the Consumer Consultative Committee.

Is my hon. Friend aware that I was pleased to join the hon. Lady the Member for Plymouth, Drake (Miss Fookes) at a meeting of parliamentarians in Brussels concerned with consumer problems a short time ago? Is he aware that we were appalled to learn that the number and amount of staff and resources within the Commission devoted to consumer problems were equivalent to just four full-time members and that the consumer viewpoint on the common agricultural policy appeared to be grotesquely under-represented? What is he doing about that?

I fully share my hon. Friend's views on this matter and his concern about the weakness of the staffing and structure of the Consumer Consultative Committee. I particularly regret and deplore the Commission's failure to take full account of the Committee's representations before the ministerial meeting at which the common agricultural policy decisions were taken. We hope that during the coming year this position can be very much improved along the lines that my hon. Friend has suggested.

Is the hon. Gentleman aware that the forcible incorporation of dried skimmed milk into animal feeding stuffs will raise the cost of food? Has this had the permission of the Price Commission?

The hon. Member knows that that is a question for the Minister of Agriculture, but the arrangements are temporary and will all be reviewed.

asked the Secretary of State for Prices and Consumer Protection whether she will extend the powers of consumer protection officers to enable them to investigate allegations of excessive charges or unjustifiable price rises.

Responsibility for investigating excessive charges or unjustifiable price rises rests with the Price Commission. But consumer advice centres and citizens' advice bureaux are the instruments for pursuing individual complaints. The role of consumer protection officers is to investigate misleading statements about prices.

I thank the Minister for his reply. Is he aware that many local officers are dissatisfied because of the restrictions on their duties and that they believe that they cannot investigate on-the-spot complaints and provide a complainant with a satisfactory reply? Would he agree that the attack on inflation could be made more effective and that complainants could be much better satisfied if authority were given to local officers to do these on-the-spot investigations and thereby give a response to the complainant?

I should have thought that the Opposition when in government must have considered that point of view, as we have. But the trading standards officers are already working heavily in following through the consumer protection legislation which we recently passed. I have not received many representations from them for extra work. Indeed, if anything, their representations have been to the effect that they are now working pretty heavily. In any case, it could detract from their other work on the consumer protection front and overlap with the work of the Price Commission. I am therefore afraid that I can hold out no hope of such a change: I am sorry.

asked the Secretary of State for Prices and Consumer Protection what estimate she has made of the saving per week, for a single person, as a result of the present level of food subsidies.

The average saving for for a single person living alone is estimated to be about 24p per week.

How temporary are the subsidies?

The programme for the future of subsidies has been set out in the Public Expenditure White Paper with a carefully-considered timeable for their reduction.

Would not my hon. Friend agree that it is now widely recognised on this side of the House that the food subsidies have had an important redistributive effect in helping the lower-paid sections of society? In those circumstances, would he ask our right hon. Friend to use her now much greater weight within the Cabinet to ensure some change in any policy which is aimed at cutting out these subsidies?

My hon. Friend is right to stress the redistributive benefit of food subsidies, although it is true that in the long run, if one wishes to achieve that end, it may be better to act directly through taxation and the social security system. But I am sympathetic to his view of the importance which should be attached to the future of the food subsidy programme. The proposals for the future represent, I believe, the fastest possible rundown.

With reference to subsidised bread, does not the increase of lp on a standard 17p loaf mean that the price of bread has increased by 6 per cent. and that not even a subsidy has enabled it to remain within the Price Check Scheme? It is now outside.

The increase in the price of bread is due simply to a straight increase in the price of flour. The increase is not, however, 6 per cent., as the hon. Gentleman said. The Price Check Scheme permits a rounding up to the nearest coin in common use.

What estimate has my hon. Friend made of the increase in subsidies needed to keep pace with the price increases which will be brought about as the direct result of the CAP price review?

The Government's view is that it is appropriate to adhere to the general policy of relying increasingly upon social security benefits to meet the cost of inflation. My hon. Friend will be aware that last week the Secretary of State for Social Services announced the fourth such increase in the two years since this Government took office.

Further to the suggestion by the hon. Member for Cannock (Mr. Roberts), would the hon. Gentleman confirm or deny that it is this Government's policy to use food subsidies for the purpose of redistributing wealth?

The policy of food subsidies is redistributive; that is one of its merits and attractions to us.

asked the Secretary of State for Prices and Consumer Protection what plans she has to keep the public informed of the problems created by metrication.

When in government, the Opposition entered into international commitments to metricate and to allow the import of metric goods after a set date. To avoid confusion and unnecessary cost for consumers as a result of these commitments it is necessary to complete the metrication programme in an orderly fashion. These possible problems could become more acute as increasing numbers of school leavers, trained primarily in the metric system, have to contend with the protracted use of a dual system in our shops and factories.

I thank the Minister for that extraordinary answer. Would he not agree that the sudden withdrawal of an enabling Bill to metricate must add confusion to the public and particularly industry? When do the Government propose to re-table that measure—I hope with amendments that would make it passable in the House?

If there is any confusion, the convolutions of the Opposition have not exactly helped. The policy was to enable us to do what was necessary to fulfil their obligations in an orderly fashion. It seems to me—I make this point genuinely, whether the House wishes to believe it or not—that we should at least try, on what has been a consensus policy for the last 10 years, to explore how far consensus can be re-established. That means consensus with the consumer organisations, which have been overwhelmingly in support of changing Section 10(10) of the Weights and Measures Act 1963, and with the trade. I have had meetings and have invited the Opposition to meet me also.

Have the Government seen the proposals of the Retail Consortium that there should be a statutory timetable, in consultation with retailers?

I am grateful to my hon. Friend for drawing that to the attention of the House. I had a meeting with the Retail Consortium only last week. It is clearly understood that, while the Consortium is no more enthusiastic about metrication than probably any of us as individuals, it recognises the inevitability of the situation, the fact that voluntariness has now virtually reached its end and the fact that we shall now have to try to organise the completion of the metrication programme. I am grateful to the Consortium for at least presenting the problems as it sees them.

Will the Minister please answer these questions in a more honest fashion and say that this country was committed to metrication in the first place in 1965 by a Labour Government and that the consensus followed later about the actual principle of metrication? Will he urge the new Leader of the House to make parliamentary time available so that the confusion can be ended and the Government can put their plans to the House for consideration before they present a Bill?

I should like to think that the hon. Lady will on reflection choose, at least on a personal level, to withdraw her comment about honesty, because I found it somewhat surprising. No one has tried to pretend that metrication was not started in 1965 at the request of the Confederation of British industry. It was immediately supported by Opposition spokesmen in the House of Lords when it was debated there. When it was debated here and I was sitting where the hon. Lady is now, despite the fact that there was political mischief to be done and political capital to be made if one wished to be cheap enough, I retained tht consensus approach. What is more, I have extended a courtesy which was never extended to me when I was in opposition: I have had Opposition spokesmen in to see me on several occasions for off-the-record discussions and briefings. I have indicated to them that the Section 10(10) change was coming about. No indication was given by the Opposition that they would table a completely negative amendment. Indeed, the hon. Member for Kingston-upon-Thames (Mr. Lamont) has on a number of occasions asked when we would bring in Section 10(10).

Does my hon. Friend realise that throughout all this argument there has been a large body of opinion, on this side of the House especially, which has never been part of this consensus and, what is more, never will be? In view of the fact that the Common Market is showing the first real signs of cracking up, why bother with it at all?

My hon. Friend should bear in mind that in the last two years we have had only about a dozen questions, including supplementary questions, from Government supporters on this subject—

So what?

My hon. Friend says "So what?" If it comes to consultation, I have on several occasions raised this matter with the appropriate Back Bench committee. It has never been challenged in that committee. When various metrication Orders have come forward for discussion, there has been little participation by my hon. Friends. Those hon. Members on both sides of the House who think that they do anyone a service by trying to bury their heads in the sand should remember that nearly 15 million children have gone through or are going through the school system since the decision to go metric was made. We have a responsibility to them as well.

asked the Secretary of State for Prices and Consumer Protection how many representations on metrication she has received since 23rd March from bodies representing industry and consumers, respectively.

Since 23rd March I have received representations from 21 organisations, 14 representing industry and seven representing consumers. The overwhelming majority of representations received by the Department, both before and after 23rd March, support the view that the orderly completion of the metrication programme is essential and that there should be no avoidable delay in the progress of the Weights and Measures, &c. Bill.

As industry seems anxious to proceed to metrication in view of the potential loss of export orders if that course is not followed, but as the consumer is understandably anxious about such matters as possible profiteering and confusion, how practical is it to extend the powers of the Metrication Board on the one hand or the Office of Fair Trading on the other so that some consideration may be given to the interests of the consumer, while not delaying the metrication of industry?

I appreciate the constructive spirit in which the hon. Member has put forward his proposition. It received the inevitable negative response from his own Front Bench, a situation with which I am becoming fully acquainted on this subject.

asked the Secretary of State for Prices and Consumer Protection whether she has made any estimate of the cost to retailers of metrication; and whether she will publish it.

I accept the conclusion of the Conservative Government's 1972 White Paper that it is impossible for the United Kingdom, as it has been for all countries which have changed to the metric system, to make an estimate of the total costs of the metric changeover. I also agree with that White Paper's statement that

"the costs of a quick and radical change would be high, as would the costs of a protracted and unplanned change, but direct costs can be reduced, sometimes almost to zero, by a phased introduction of metric equipment".

Will the hon. Gentleman take it that both retailers and consumers are deeply concerned about metrication, as they were about decimalisation, and will he therefore make a major contribution to orderly progress in this matter by considering publishing details of firm cut-off dates for the various commodities, and also proposals for consumer safeguards?

I dealt with the consumer safeguards side of it in reply to a previous Question. As regards prices cut-off dates, I find the hon. Gentleman's attitude somewhat strange. On the one hand, the Opposition berate us for wanting to take powers and, on the other, they want a tighter timetable, apparently, than we envisage. I make this genuinely practical point to the hon. Gentleman, and I hope that his hon. Friend the Member for Gloucester (Mrs. Oppenheim) will absorb it. The fact is that certain sections of industry, trade associations and so on have made clear to us that until Section 10(10) of the 1963 Act is amended, they are not, because of their members' reluctance, in a position actually to negotiate a timetable. I cannot therefore give a predetermined timetable until I have had those negotiations, and the Section 10(10) amendment is a prerequisite of starting the negotiations.

Does my hon. Friend recall that during the decimalisation period there was grave dissatisfaction and apprehension throughout the country, when ordinary people, to put it frankly, felt that they were being fleeced and cheated, and this has been almost proved since? Will my hon. Friend therefore invoke the aid of the consumer councils and other machinery he has to hand to ensure that there is no repetition of such disgraceful behaviour on the part of some commercial undertakings?

Whether there was or was not exploitation at the time of decimalisation, it is clear that in the public mind there was, and there is therefore legitimate public concern. But let us understand why, if there was exploitation, it was possible for it to take place unchecked. This was because the whole trading environment changed at that time, and the purpose behind changing Section 10(10) is to enable changes to take place sector by sector so that proper vetting can take place. The more things are compacted into a short time, the more we push against the deadline which the Opposition entered into, the more likely it becomes that we shall have an uncontrolled change-over.

What possible justification can there be for the increase of 40 per cent. in the running costs of the Metrication Board between 1974 and 1975, that is, to almost £1 million? What will it cost this year?

I invite the hon. Gentleman to read the Metrication Board's report, which will, I believe, be published this week, in which most of these things will probably be made clear. But here again, on the one hand, we are asked for greater publicity to produce public awareness of the problems of metrication, as was requested in a previous Question, but then complaint is made when the organisation which is to do it actually spends some money.

asked the Secretary of State for Prices and Consumer Protection whether she will make a further statement on recent developments in the retail petrol market.

I have nothing to add to the reply given on 18th February to my hon. Friend the Member for Woolwich, East (Mr. Cartwright).

As the Minister watches developments, will he bear in mind the rate at which small retailers are being eliminated because of the present very low margins, and also the risk that, if this process goes too far, motorists will face a further worsening in service on the forecourts?

I am grateful to the hon. Gentleman. It is a worrying point and I have had the representatives of the retailers—the MAA and the PRA—and of the major petrol companies in to see me to discuss these problems. All of them have accepted that, because of the changes taking place in the market for petroleum products, there is bound to be some reduction in the number of outlets. My concern and, I suspect, that of the hon. Gentleman is to ensure that that reduction takes place in as fair a way as possible. I believe that Government participation at this stage can only distort the change of pattern that is taking place. I have made it clear that I intend to keep this under scrutiny.

Can my hon. Friend do something to protect the motorist who still finds himself in a very confused situation when he passes petrol stations offering 20-fold or 12-fold stamps, coupons, or 8p or 9p off the price of a gallon of petrol, because the signs displaying these offers do not say off what? Cannot he appeal to the appropriate body to state the actual price that the motorist will be charged for the different grades of petroleum?

The plea made by my hon. Friend is echoed by most motorists in this country. However, I might point out that the most forceful way for motorists to state their case is to go to petrol stations showing the prices being charged. At my request, the Director General of Fair Trading is now carrying out negotiations with retailers and petroleum companies to achieve proper price displays. I think that agreement can be reached in the case of price competition, but I am determined that it should extend to stamp trading as well, because it is important for people to know what 20-fold stamps represent, as well as what is meant by 7p off the price.

With 20-fold or 30-fold stamps available on the one hand and substantial cash discounts available on the other at the same time as companies appear to be wishing to put up prices again, cannot the Minister use his good offices at least to knock a few marketing heads together in order thereby to eliminate some of the confusion among motorists?

This is why I have had meetings with the petrol companies and with retailers. There is an understanding amongst the retailers and amongst the companies themselves that they are not only creating confusion for the motorist but damaging their own good will with the public. That is why we are likely to get some reasonable agreement between them and the Director General of Fair Trading.

asked the Secretary of State for Prices and Consumer Protection what representations her Department has received from consumer bodies about the effect upon consumers of recent proposed increases in charges in the public sector; and what action she has taken in the light of these representations.

My right hon. Friend receives representations about the effect of public sector prices from the nationalised industry consumer councils as well as other interested consumer bodies; the Government take these fully into account when considering all proposed price increases.

Has the Minister seen the constructive report from the Post Office Users' National Council on the proposed increases in parcel post charges which argues that on commercial grounds these charges may be fraught with danger and urges deferment for six months pending discussions with large users? In view of the effect that these increases will have on many industries, which will come straight through in prices to very many consumers, ought not the Secretary of State to be pitching her weight behind the representations to defer the increases for six months?

I have seen the recommendations of the POUNC on this. The hon. Gentleman will be aware of the reply of the Minister of State, Department of Industry on this subject, he being the responsible Minister. I am afraid that the problem will not be resolved by mere deferral, though the arguments put forward by the POUNC are weighty and are being given careful consideration.

Is my hon. Friend aware that very considerable difficulties are placed in the way of gas consumers because of the decision of gas offices to remove their telephone numbers from local telephone directories, so that it is impossible now for anyone to get in touch with his local gas office?

I am grateful to my hon. Friend for raising that point, and I shall certainly look at it.

Did the hon. Gentleman notice the specific criticism of of the POUNC of the refusal of the Post Office to make information available to it? What does he intend to do about that?

That is one matter being considered. But the hon. Gentleman will realise that the Corporation is not answerable to any Minister for points of internal management.

asked the Secretary of State for Prices and Consumer Protection if she will make a statement on the policy of Her Majesty's Government towards the EEC draft directive on precious metals which could alter the well-established system of hallmarking now operating in the United Kingdom.

While the draft directive is intended to reduce barriers to trade in articles of precious metals within the Community, I am considering representations that its implementation in its present form might adversely affect our trade, weaken the protection afforded to consumers by our present hallmarking system, and be technically unsatisfactory. In further Community discussions we shall be making it clear that, to gain United Kingdom support, the directive must take account of the interests of all the member States of the Community and the desirability of including effective technical provisions on quality control and marking.

Is my hon. Friend aware that this proposal has been condemned by the Assay Master of the Sheffield Assay Office and by the Cutlery and Silverware Manufacturers Association? Is he aware that Germany, Italy and Denmark have no assay system and have no intention of setting one up? Will he resist this neurotic obsession of Brussels with harmonisation?

I have no objection to harmonisation where it furthers the interests of the people concerned, but I shall resist as far as possible harmonisation which detracts from the interests of the consumer. As for the type of case to which my hon. Friend is referring, we have only recently ratified the international convention in this respect. There will be great benefit for the industry in this country if we can secure greater agreement at an international level. Clearly, however, there must be unequivocal standards which are accepted by all the countries concerned if the consumer's interest is to be protected.

asked the Secretary of State for Prices and Consumer Protection what was the six-month annualised rate of inflation in the six months ending December 1975, January 1976 and February 1976.

Despite the fact that these three six-monthly periods comprised 25, 26 and 27 weeks respectively, the all-items index, less seasonal foods, which is the best trend indicator, has on an annualised basis steadily declined from 14·1 per cent. to 13·6 per cent. to 13·2 per cent.

Is the Secretary of State aware that, including seasonal foods and drinks, the rate has gone in precisely the opposite direction—from 14 per cent. to between 14·1 per cent. and 14·9 per cent.? Is she not very alarmed at the steep rise in the prices of imported commodities? They averaged 20 per cent. in one month alone in the case, for example, of coffee, cocoa, copper and lead. In her Jekyll and Hyde rôle in the Cabinet, what action is the Secretary of State proposing to defend sterling in the coming months to ensure that imported inflation does not ruin the Chancellor's plans?

Order. Everyone will have observed that both questions and answers are developing into speeches today. This is not the time for debating.

On the first part of the question, I am using a period of six months, which is invariably used and which has been used by this Government from the beginning on questions on this subject. Seasonal factors inevitably show a rise in the winter and a fall in the summer and create difficulties in the statistical pattern. I am using the same statistics as I have used throughout on questions on this subject. That is the proper basis for comparison.

Does my right hon. Friend agree that the impact of inflation is not consistent throughout the population? Because low income groups and large families have to pay a proportionately larger part of their income for energy, food and rent, they are hit much harder by inflation.

My hon. Friend is correct. That is why the Government have continued with both food subsidies and rent subsidies and have recently increased both during the period of the counter-inflation policy.

Does the Secretary of State agree that the impact falls more heavily on different parts of the country, and that in north and north-east Scotland people are particularly hard hit because of the increase in transport charges? They are not protected by the London weighting allowances as are people here

There is some evidence that the pattern of regional pricing is rather more varied than the hon. Gentleman's question implies. It is not the case generally that Scottish prices are higher than prices throughout the rest of the United Kingdom.

asked the Secretary of State for Prices and Consumer Protection what is the most recent year on year rate of inflation.

asked the Secretary of State for Prices and Consumer Protection what are the latest figures available for the year to year and month to month rates of inflation; and if she will make a statement.

The February 1976 month on month increase in the Retail Price Index was 1·3 per cent. and this brought down the overall 12 month figure to 22·9 per cent.

To what extent does the right hon. Lady think that the unprecedented public sector borrowing requirement envisaged this year constitutes a real threat to the Government's anti-inflation policies?

No one would deny that the PSBR is very high and needs to be brought down. However, I do not think that that matter arises directly from the Question.

Will my right hon. Friend take this opportunity of agreeing with me—[HON. MEMBERS: "Oh".]—for once—that the forecasts made by the gloom-mongers of the Opposition or the long-haired Cambridge economic forecasters, that inflation will take off again in the long term, are not based on any reputable statistical evidence whatsoever?

I shall endeavour to take every opportunity to agree with my hon. Friend. On this occasion I should like to say that as this is a country that invariably presents the most gloomy view of its own achievements, it is worth mentioning that the cutting of the rate of inflation by more than half in one year is a pretty remarkable achievement in a democracy, even though we still have a long way to go.

Will the right hon. Lady take this opportunity of reminding the House that it was neither long-haired Cambridge economists nor Opposition Members but her right hon. Friend the Chancellor of the Exchequer who predicted a rate of inflation of 8·4 per cent.?

The Chancellor was predicting a figure which was borne out on a three-monthly basis. The Opposition are not at all averse to using a three-monthly basis if they choose.

What effect has the CAP had on our inflation? By how much have food prices risen as a result of the CAP?

The effect of the CAP settlement on the food index—not on the RPI—was about 1¼ per cent. That must be added to a transitional policy stage increase of about 1 per cent. The effect on the RPI is therefore about 0·5 per cent.

asked the Secretary of State for Prices and Consumer Protection whether she has any plans to meet the Electricity Users' Consultative Council.

I will be meeting Mr. Tom Young, the new Convening Chairman of the Electricity Consultative Councils, tomorrow to discuss a number of matters of interest to electricity consumers.

When the Minister meets the Council will he discuss the various problems facing old-age pensioners who do not understand the different tariff rates of the electricity boards? Will he discuss also the inequities of the rates of standing charges?

The hon. Member is right in saying that the public could benefit from clear information about the importance of being on the right tariff. There have been discussions on this subject with the industry and I am willing to discuss it further with Mr. Young tomorrow.

Will my hon. Friend consider with the Council the idea advanced by housing chairmen that heating costs should form part of the rent and that rent rebates could therefore be given? That would therefore avoid the risk of hypothermia among the elderly.

I have not seen that proposition before and I shall look into it.

Since fuel represents 60 per cent. of the CEGB's costs, will the Minister talk to the Department of Energy about what can be done to improve the thermal efficiency of the power-burn, which would make a most important contribution to keeping down electricity prices? This is being done on the Continent.

The thermal efficiency of power-burn is outside the remit of my Department.

Does my hon. Friend agree that, since food subsidies are an important element in the budget of old-age pensioners and others on low incomes, it would be better if subsidies to the nationalised industries, including gas and electricity, were to be maintained or phased out over a much longer period? Would not this reduce the difficulties which increased gas and electricity charges are causing to these people?

If the basic proposition put forward by my hon. Friend were sound, I would accept it. Our researches show, however, that, whereas the benefits of food subsidies operate four to one in favour of the low-income family, subsidies on fuel actually work two to one in favour of the high-income families. If we have £100 million to spend, we have to decide how it will create the maximum social benefit—putting it on foodstuffs or putting it on electricity.

asked the Secretary of State for Prices and Consumer Protection what is her assessment of the effect of the continued decline of the £ sterling on domestic retail prices of food, clothing and other essential items which have a high import content.

Sterling depreciation affects domestic prices differently depending on import content. It has been estimated, however, that a 5 per cent. depreciation leads to a 1 per cent. to 1½ per cent. increase in the Retail Price Index over a period of about one year.

Is not the Secretary of State very concerned about the continued depreciation of sterling? As she is probably aware, there has been a decrease of over 10 per cent. in the value of sterling against most other currencies in just the last month. How soon will it be before that reflects itself in higher prices in this country?

I have already given an indication of the answer to the second part of the right hon. Gentleman's question. As regards the first part of the question, any responsible person must be concerned about sterling depreciation. The right hon. Gentleman will appreciate that the only way to deal with this is by a direct frontal attack on inflation of the type that the Government are mounting.

As on this Question and others my right hon. Friend has strayed well into the area of Treasury matters, will she say when she will detail her responsibilities as Paymaster-General and whether she will answer Questions relating to them on Prices and Consumer Protection days or join the Treasury team for Treasury Question Time?

My hon. Friend will appreciate that I have endeavoured to be helpful, and a number of hon. Members on both sides of the House have carefully put into their original Questions references to domestic prices. It is a little difficult to transfer all these Questions without seeming to be singularly unhelpful to the House. However, I take my hon. Friend's point. I am not an additional wheel to the Treasury team. It does not need one.

Does the Secretary of State agree with her right hon. Friend the former Paymaster-General, now Secretary of State for Trade, who in Glasgow a month or so ago said that a strong currency in the form of a Scottish pound was something to be avoided?

I think that my answering a question on the Scottish pound is also something to be avoided.

asked the Secretary of State for Prices and Consumer Protection whether she remains satisfied with the operation of Part II of the Fair Trading Act 1973; and if she will make a statement.

I am not wholly satisfied with the way Part II has operated so far. But when all concerned have had more experience of the novel procedure introduced by the Act I expect it to operate more quickly.

As the main purpose of Part II of the Fair Trading Act is to provide speedy and effective procedures for dealing with consumer malpractices and thereby to strengthen fair competition, and as it has taken an extremely long time to deal with the three main references that have been made by the Director General of Fair Trading, what will the Minister do to improve procedures and machinery for dealing with these matters?

I am grateful to the hon. Gentleman. These are valid points for us to be considering. I have naturally discussed this subject with the Director General and the CPAC itself. Part of the difficulty may be not inherent in the machinery but perhaps in the way in which it has been used. There are certain very serious problems. I trust that we shall have a discussion on these soon after the Recess. For example, on one problem a very serious question of vires arises. I think that the whole House would take the view that where one is creating criminal offences and where there is a question of vires, it is very important that Ministers and the Government should get it right.

asked the Secretary of State for Prices and Consumer Protection when she next plans to meet the Chairman of the National Consumer Council.

My most recent meeting with the Chairman of the National Consumer Council was last Tuesday, 6th April. I have since asked to meet the Chairman and the full Council in the near future. Ministers and officials of the Department are continually in touch with the Chairman of the Council.

In view of the conclusion by the Price Commission that increases in nationalised industries' prices were greater than would be justified merely by the withdrawal of subsidies and in view of the concern that has been expressed on both sides of the House about nationalised industry price rises, will the Minister discuss with the Chairman of the National Consumer Council ways in which the consultative committees might be strengthened, particularly as they have been revealed as being so ineffective?

I am a little surprised that the hon. Gentleman has overlooked the review, to which I have referred on several occasions, which my right hon. Friend and I set in motion, asking the NCC to do exactly that. It is due to report, I hope, within the next two months or so on the operation of the nationalised industry consultative councils. The hon. Gentleman will be aware that my right hon. Friend has given the reference to the NCC to investigate the impact of energy tariffs upon the low-income family.

When my hon. Friend meets the Chairman of the NCC, will he congratulate him on the work of the Council since it was set up by the present Government? Does it not prove that the action taken by the Opposition in abolishing the old Consumer Council was very damaging to consumer interests?

The surprising thing is that the hon. Member for Gloucester (Mrs. Oppenheim) has already virtually committed the Opposition, as far as I read her remarks in an interview, to abolishing the NCC, or at least, apparently, she regards it as superfluous. The important thing that must be established, however, is that the NCC—whether or not I agree with it on points of difference—has taken exactly what we told it to take—an independent line on behalf of consumers. It is up to myself and my right hon. Friend to discuss whether there are points of difference, but certainly the National Consumer Council is beginning to stand up not only for itself but for the consumer.

asked the Secretary of State for Prices and Consumer Protection whether she will make a statement on the progress made in her negotiations about the future of the Price Code.

Many organisations have made representations, and I am considering the evidence and views put to me in the framework of the Government's economic objectives. I am very willing to receive views from other interested organisations.

As it is now clear even to the Government that institutions and individuals will invest in industry only if they can earn a sufficient return on their money, will the right hon. Lady seek to advocate the abolition of the Price Code and of dividend restraint in the interests of higher investment and more jobs?

Perhaps conveniently, the hon. Member is forgetting, first, the genesis of the Price Code and, second, the fact that we were the Government who introduced the investment relief. But I make no bones of the fact that higher investment is of great importance, and this is a central factor in our review.