asked the Secretary of State for Prices and Consumer Protection, when he intends to meet the Chairman of the Price Commission.

asked the Secretary of State for Prices and Consumer Protection when he next expects to meet the Chairman of the Price Commission.

asked the Secretary of State for Prices and Consumer Protection when he next intends to meet the Chairman of the Price Commission.

asked the Secretary of State for Prices and Consumer Protection when he next expects to meet the Chairman of the Price Commission.

asked the Secretary of State for Prices and Consumer Protection when next he is going to meet the Chairman of the Price Commission.

asked the Secretary of State for Prices and Consumer Protection when he next expects to meet the Chairman of the Price Commission.

The chairman of the Price Commission and I meet frequently. No firm date has been set for our next meeting.

When my right hon. Friend next meets the chairman of the Price Commission, will he congratulate him on the action taken on tea prices? Will he also ask him why similar action cannot be taken to restrain the unquenchable thirst of the brewers for high prices?

I am grateful for what my hon. Friend has said about the tea report. The brewers, unfortunately, pose a different problem. One of the problems concerns the structure and organisation of that industry. I am now having talks with the brewing industry in the hope that the semi-monopolistic arrangement can in some ways be broken down.

When the right hon. Gentleman meets the chairman, will he point out that having a tea price report is no way in which to undertake investigations? There has been nil consultation with those involved and nil understanding of the marketing of packaged goods. Was it not very much a by-election gimmick in view of the way in which he built it up and suddenly agreed to only a small modification, not what he was demanding a few weeks ago?

There is a later Question on the Order Paper on the subject of tea. However, the hon. Gentleman omitted from his litany of the Price Commission's reaction to the tea situation the fact that on Friday of the week before last the tea blenders refused to make any reduction. In the face of the order which the Price Commission made possible, the blenders have now made a reduction. That, I hope, is only the first stage. It is my policy to ensure that the price of medium-quality tea in the shops remains at or about the level recommended by the Price Commission.

When my right hon. Friend next meets the chairman of the Price Commission, will he discuss with him the advice given by the accountants, Coopers & Lybrand, on how to avoid investigation of planned price increases, bearing in mind that the company has carried out work for the Price Commission?

I am not altogether conversant with the advice that that firm gives. I know two things about companies that have been employed by the Price Commission to carry out investigations. First, some of those companies have been re-employed by the investigated companies in order that they might get more good advice of the type provided by the Price Commission. Secondly, I do not believe that there is any easy formula by which a company can avoid investigation. If prices go up in accordance with formulae which are not consistent with those in the Act, the Price Commission is likely to investigate, and the prudent company must realise that.

Will my right hon. Friend and the Price Commission reject the Common Market demands that British Rail should stop young people between the ages of 12 and 14 from travelling for half price on the railways? This is another example of Common Market inflationary policies, which means taking money out of schoolchildren's pockets and probably taking more passengers away from the railways. Is it not about time that the Price Commission told the Common Market Commission that we have had enough?

I know of this case only from what I have read in this morning's newspapers. As I understand it—I am open to correction—the Price Commission will not be involved. I cannot imagine by what power the European Economic Community believes that it can influence British Rail prices.

Coming back to the Secretary of State's answer about consultation, when he next meets the chairman of the Price Commisison, will he stress that the policy should be one of consultation, not confrontation? When are the discussions between the Price Commission and the CBI to start? If he is so pleased with the tea report, why is it that the RPI does not include the Co-op's brand of tea in its register?

This is a narrow statistical point which I shall try to explain. The consultations that I had with the blenders were based not only on the RPI calculations but on two other surveys, both of which confirm the Price Commission's judgment.

Will the Secretary of State discuss with the chairman of the Price Commission the question of factual inaccuracies in the Price Commission's report? Is he satisfied that there is no mechanism for correcting such inaccuracies, having regard to his impotence to do anything about them?

The hon. Gentleman means the allegations of factual inaccuracies, which is a technique employed by some companies which are investigated. The Price Commission hopes that, wherever possible, facts can be agreed with the investigated party. Where that is not possible, it is made very clear. The investigations, which I have followed up in discussions with the affected industries and companies, have in my experience normally confirmed the Price Commission's accuracy.

Does my right hon. Friend agree that the co-operative movement has responded to the request made by the Department about retail tea prices and that, for the third time since August, it has led the way by making a significant reduction in shop prices? Is it not a fact that from today Britain's largest retailer will be cutting the prices of its tea to make it the most competitive national brand at 22p for a quarter pound packet, which is what the Department requested?

I can not only confirm what my hon. Friend said but would have repeated it in a later answer. The significant figure is 22p per quarter for medium-quality tea, which was the Price Commission's recommendation.

When the right hon. Gentleman next meets the chairman of the Price Commission, will he ask him whether it is a fact that the Price Commission has now engaged the services of public relations consultants to improve its somewhat tarnished image and that it is likely to cost about £70,000 on the total budget? If the chairman tells him that that is true, will the Secretary of State tell the chairman that it is an outrageous misuse of taxpayers' money?

As with all agencies of this kind, the Price Commission spends its budget in the way that it chooses. I have no information on whether the Commission is employing a firm of public relations consultants. However, I do not suppose that it can rely indefinitely on the speech made by the hon. Lady in Gloucester six weeks ago.

asked the Secretary of State for Prices and Consumer Protection if he will refer to the Price Commission the level of discounts required by supermarket chain stores from food manufacturers and the effect of these on the profitability of (a) the supermarkets and (b) the manufacturers.

The Government have considered for some time that information is required about the extent and effects of granting special discounts to some retailers only, including discounts of the kind mentioned in my hon. Friend's Question. It was for this reason that a reference on this subject was made to the Monopolies and Mergers Commission in July of last year. The Commission will be glad to receive any evidence that may be relevant to its inquiries.

I welcome that statement but hope that the investigation will proceed with some speed. Is this discount policy designed to boost the profits of supermarkets or to benefit the consumer? Will the Department intervene if supermarkets adopt a policy of buying from abroad rather than from British manufacturers?

One of the purposes of the inquiry is to determine whether discounts are being offered to enlarge the market share of particular companies or to reflect genuine cost reductions. On the latter point, if my hon. Friend has any evidence of that practice being pursued, I know that the Monopolies and Mergers Commission will be glad to consider it.

In view of growing concern about alcoholism, will the Undersecretary look seriously at the increasing practice of supermarkets not only to sell wines and spirits but to sell them unregulated and in accordance with magistrates' rules which vary considerably in different parts of the country? Does he agree that this practice not only increases the danger of alcoholism, particularly among housewives, but is unfair to small shops and off licences which are required stringently to observe the rules and regulations?

The practice to which the hon. Gentleman has referred is certainly increasing competition, and perhaps to that extent he will welcome it. The other points that he made do not arise on this Question, which is about the level of discounts.

asked the Secretary of State for Prices and Consumer Protection if he is satisfied with the working of the Petrol Prices (Display) Order 1977.

Yes. Petrol prices are now being displayed much more clearly than before and most misleading signs have been removed. There is, of course, still room for improvement, in particular by ending the practice of showing only the price for full gallons when a much higher price is being charged for part gallons. I will be reviewing the order shortly.

Does the Undersecretary of State agree that there is still some confusion and, in particular, some misuse of the minuscule decimal point on some of these signs? This must be the only retail trade which uses the decimal point of a penny. Would the hon. Gentleman care to comment on that matter?

Yes. This is an undesirable, though not a major, issue which will be reviewed with the other more important issues.

Is my hon. Friend aware that, even though the order may be working satisfactorily, if I have the misfortune to have to buy petrol on a motorway service area it costs about 16p a gallon more than the price at which I can buy it in my constituency? Does he feel that that kind of variation can be justified in any circumstances?

It was because the Government recognised the force of the point made by my hon. Friend that my right hon. Friend and the Secretary of State for Transport set up an inquiry into motorway services. It is hoped that the inquiry will report in a few months. The chairman of the inquiry is Mr. Peter Prior. The inquiry is moving rapidly, and I have no doubt that it will take account of the point made by my hon. Friend.

asked the Secretary of State for Prices and Consumer Protection if he is now ready to make an order on value added tax inclusive pricing.

As I told my hon. Friend the Member for Southampton, Test (Mr. Gould) on 30th January, I hope to make an order as soon as I have resolved the problems arising from the report by the Consumer Protection Advisory Committee.

Is my hon. Friend in a position to give the House any idea how long this process will take? Is he aware that the customer rightly feels cheated when, after having decided to buy something, VAT is added to the price? It is disconcerting. Will he speed up the process?

I agree that there should be universal VAT inclusive pricing. There are some problems, in particular on builders' estimates. I cannot give the exact date, but I hope to make a firm announcement shortly.

Will the Minister explain why, when a person buys a motor car, apart from paying the vehicle licence tax, which is a car tax, he should pay VAT on the car tax? Why is such a person doubly taxed or taxed on taxation?

Because it is the judgment of the Chancellor of the Echequer that that is the right way to do it.

asked the Secretary of State for Prices and Consumer Protection what recent discussions he has had with the Director General of Fair Trading with regard to the operation of the Consumer Credit Act 1974.

As I indicated to the hon. Member in my answer on 30th January, there are regular ministerial and official contacts with the Director General. These cover consumer credit as appropriate.

Has the Minister discussed with the Director General the wording of the application form for a standard licence under the Act? Is he aware that it contains no fewer than 48 questions and sub-questions, ranging from the soundness of the applicant's mind to whether he has committed any offences under the Race Relations Acts? Is this not a vivid demonstration of the kind of bureaucratic verbiage which is being inflicted on many small businesses at the present time? Is it not time that this kind of nonsense was stopped?

The Consumer Credit Act was agreed by all parties in the House. Usually the questions require an answer "Yes" or "No", which should not be too difficult. It is the virtually unanimous view of the House that we should outlaw racial discrimination. I think it proper for the Director General to carry that intention into the form that he sends out to applicants.

Will my hon. Friend tell the House how many licences have been refused since 1974? Is it not a fact that none has been refused, which indicates that the Act is not working as satisfactorily as it might? Will he undertake to look at the case that I have sent to the Department about a firm in Bournemouth which is charging 42½ per cent, interest on the hire purchase of a second-hand car?

I am not aware that any licences have been refused. That does not mean that the Act is not working properly. Warnings have been issued to those who have applied for licences. The right test is not the refusal of licences but the improvement in standards.

asked the Secretary of State for Prices and Consumer Protection whether he has completed his investigations into uniform pricing methods in the camera trade; and if, in light of his study, he will now announce his intention to amend the Resale Prices Act 1976 so as to extend its application into schemes laying down the minimum prices at which goods may be advertised.

The responsibility for investigating attempts to impose resale price maintenance lies with the Director General of Fair Trading. I do not think that it is necessary to amend the Resale Prices Act 1976 to deal with minimum advertised prices since I am advised that the enforcement of resale price maintenance by this means is already contrary to the Act.

May I have an assurance that the cases that I have described are covered by the Resale Prices Act? How does a retailer behave when he is threatened with his supplies being cut off and is obviously frightened? May we have an assurance that any evidence that such retailers lay will be treated in the strictest confidence?

Any evidence of a breach of the 1976 Act should be reported to the Director General of Fair Trading. The Director General is prepared to treat complaints in confidence, but that sometimes leads to difficulties later if he wants to take further action. Retailers have a civil remedy against suppliers who try to enforce resale price maintenance.

asked the Secretary of State for Prices and Consumer Protection if he will make a statement on his discussions about consumer practices in relation to the sale and provision of sites for holiday caravans.

I recently had discussions with the National Federation of Site Operators and the managing director of Trellis Scott Ltd. I informed the House on 23rd February, in my reply to my hon. Friend the Member for Derby, North (Mr. Whitehead), of assurances given to me by Mr. Dunstan. These assurances will hopefully bring some relief, in particular to those licensees whose caravans are still at Dinas and who either have decided not to take up a lease or are still undecided.

I thank my hon. Friend for his prompt intervention in the Trellis Scott affair. Does he agree that the caravan owner who faces a local site monopoly, particularly when there is a change of control as there was in the Trellis Scott affair at Dinas, needs additional protection of tenure? Is not the time right for legislation?

I agree that the root of the matter is the absence of security of tenure. It is important to get legislation right. Loopholes have been found in the Mobile Homes Act. I hope that, in consultation with the Department of the Environment, proposals will be put forward reasonably quickly.

asked the Secretary of State for Prices and Consumer Protection what estimate has been made of the likely trends in the retail price index up to the end of 1978

asked the Secretary of State for Prices and Consumer Protection what are his forecasts for price increases in the coming year.

Provided that wage settlements continue to be made at a moderate level, I expect the rate of inflation to remain in single figures throughout the year.

Does my right hon. Friend agree that housewives in particular will be happy with that assessment? Does he also agree that those same housewives will note the Tory Party's support for the tea blenders and their opposition to reducing prices? When will the order be debated in the House?

I cannot recall a single occasion in the last 18 months when the Tory Party has not consistently voted and spoken against every attempt we have made to control prices. I am not sure when the order will be debated. I hope that the tea blenders will continue their consultations. We shall see how the proposals work out. We must have a movement of tea prices towards the level recommended by the Price Commission. There will be an order and a debate if that is not brought about in other ways.

Is my right hon. Friend aware that the CWS is leading the way by reducing the price of tea to 22p per quarter, 5·3 pence below the average arrived at by the Price Commission? Does he accept that that meets his criterion and that the CWS should not be penalised for selling tea lower than the other blenders? Will he give credit to the CWS for starting to bring down the price?

For the second time today I am glad to acknowledge that movement, and I hope that the CWS will bring with it the rest of the industry. I am more interested in the overall average price of medium-quality tea. That is the figure on which the Price Commission concentrated and that is the figure on which I must take action if the blenders, retailers and the rest of the market do not produce that sort of result over the next week or two.

When the last retail price index figures came out, the Secretary of State commented on them at the headquarters of the Ilford, North Labour Party during the by-election campaign. Does the Secretary of State think that his intervention in that campaign helped his party's candidate?

That campaign was characterised by different issues which I do not propose to raise this afternoon.

My right hon. Friend and the Chairman of the Price Commission are to be congratulated on what they have done about tea, but is my right hon. Friend aware that when, due to certain circumstances, the price of a commodity rises, when those circumstances end prices should come down? Is he aware that prices still remain high in such circumstances and force up the index? What does he intend to do about it?

That is the problem with which the Price Commission dealt. When raw material prices went up, the prices in the shops went up, but benefits are not always passed on when the price of raw materials comes down. This is an important matter with which the Price Commission attempted to deal in its report on tea.

Is the Secretary of State aware that in a Written Answer of 27th February it was shown that a given increase in earnings is likely to result in an equal rise in prices? As earnings are generally acknowledged to be increasing by 12 per cent, to 15 per cent., is not the return to double figure inflation more a question of when rather than whether?

No. The position is as I have described it and as I shall continue to describe it. Inflation will remain in single figures this year and into 1979. The evidence for that is overwhelming.

asked the Secretary of State for Prices and Consumer Protection how many new consumer advice centres will open in the next year.

It is intended that 26 new centres will open as a result of the £300,000 which my Department is providing to grant-aid their setting up costs. A total of 25 of these centres are receiving 100 per cent, grants. I hope that other centres might also be opened independently of this scheme.

I welcome that reply. Can my hon. Friend say what steps he is taking to ensure that the less progressive authorities do not close centres that are already running successfully?

On every occasion when there is a proposal to close a centre, I offer to discuss it with the chairman of the consumer protection committee. I understand that the proposal in Manchester to close centres has been deferred until May. I am glad that there has been no precipitate decision.

Does the Minister accept that local government authorities are best able to decide whether the centres are worth while and that therefore Ministers should take more cognisance of their wishes?

I have always accepted that local government should have autonomy, but sometimes the views of the party in power are not the same as those of consumers.

Does my hon. Friend accept that it is becoming more difficult for consumers to know what is going on because of the increasing number of EEC directives? Will he ensure that more consumer centres are opened as soon as possible?

I have ensured that 26 new centres will be opened this year. As a result of 100 per cent. Government grants, no cost will fall on the ratepayers.

Taxpayers.

I hope that the House welcomes the scheme.

asked the Secretary of State for Prices and Consumer Protection when he next expects to meet the Chairman of the Price Commission concerning the operation of the Price Code Regulations.

The Chairman of the Price Commission and I meet frequently, but no firm date has been set for our next meeting. I have no plans at present to discuss the Price Code, as distinct from the Price Commission's investigation and examination functions.

Is my right hon. Friend aware that hon. Members on both sides of the House are seriously concerned about the Price Commission's inability to freeze certain prices because of the Price Code regulations? The brewers are a blatant example of that. Will my right hon. Friend introduce amending legislation without delay?

I know that many of my hon. Friends fear that the present level of safeguards prevents the Price Commission from taking action that it would otherwise have taken. As a result, I have asked the Price Commission to report to me whenever it is inhibited, because of the level of the safeguards, from taking action that it would choose to take. If I find that there is a general problem, I shall begin consultations with interested parties and introduce an amending order in the House.

Will my right hon. Friend agree to the suggestion that, in Hansard tomorrow, he should support the idea that we should substitute the words "tea blenders" for "wage guidelines"?

I might even support that now, if I understood what it meant.

I return to the Secretary of State's previous answer. Does he acknowledge that if there were a price freeze for any considerable period many more hundreds of thousands of people would be out of work?

I am wholly opposed to a general price freeze. That issue is not related to the Question. The safeguard levels are not connected with a price freeze. If there were no safeguards the Price Commission would still have to carry out its statutory duty and make individual judgments about different price levels and increases.

asked the Secretary of State for Prices and Consumer Protection whether he is satisfied that the Price Commission has adequate powers to assess the acceptability of prices charged for goods manufactured by foreign-based multinational companies.

Prices for all goods and services produced in the United Kingdom can be investigated by the Price Commission whether the company concerned is United Kingdom-owned or the subsidiary of a foreign-based multinational company.

Does my hon. Friend appreciate that that answer does not meet the Question at all? Does he realise that the Question refers to goods produced by multinational companies? May I rephrase the question? How can the Price Commission confidently know what is the cost of production and what are the profit margins on goods produced by multinational companies commonly using many production and distribution centres throughout the world? How can the Price Commission possibly say that it has any chance of being able to give sound advice on price controls and regulations for such organisations and such products?

I do not know which concerns my hon. Friend has in mind—

Heavy electrical goods.

If the manufacturing operation is in this country, the goods produced are subject to the scrutiny of the Price Commission, regardless of the ultimate ownership of the company and whether it is foreign-based.

asked the Secretary of State for Prices and Consumer Protection what are the terms and conditions of appointment of the Chairman of the Price Commission.

Mr. Charles Williams was appointed full-time Chairman of the Price Commission for a period of two years from 1st August 1977 at an annual salary of £18,000.

Does the right hon. Gentleman agree that the tea prices issue illustrates that he and the Chairman of the Price Commission together have acted in an arbitrary and political way? Will he warn the chairman that any party which believes in competition and market forces ought, when it is returned to power, to dismiss both the chairman and the Price Commission?

I am not sure whether the hon. Gentleman has read the report on the tea blenders. If he has done so, he might have done the House the courtesy of referring to those paragraphs which complain that competition within that industry is insufficient.

Does my right hon. Friend agree that the comments of the hon. Member for Wolverhampton, South-West (Mr. Budgen) would be totally rejected by some manufacturers? Does he further agree that organisations such as the CWS and Lyons Tetley have voluntarily brought down the price of tea to 22p per quarter? Is he aware that there are some manufacturers who believe that only one set of tea blenders is consulted when the general index has to be adjusted? Will he please look into that and ensure that a wider range of tea blenders is consulted?

All of the questions about the report concerning the tea blenders have demonstrated, irrespective of what might be said in the House and the? country, that whenever there is the oppor- tunity to take positive action to reduce specific prices the Opposition always are vocally against such a move.

asked the Secretary of State for Prices and Consumer Protection if he will make a statement on the latest percentage figure of inflation.

asked the Secretary of State for Prices and Consumer Protection what is the year-on-year rate of inflation at the latest available date.

asked the Secretary of State for Prices and Consumer Protection what has been the increase in the retail price index since March 1974.

asked the Secretary of State for Prices and Consumer Protection what is the increase in the Price Commission six-monthly index.

asked the Secretary of State for Prices and Consumer Protection what is the latest monthly figure for the retail price index.

The retail price index rose by 0·6 per cent, in January. This brings the annual rate of increase down to 9·9 per cent, for the first time since October 1973. The increase since March 1974 has been 84·7 per cent. The revised figure for the rise in the Price Commission index for the six months to January is 5·9 per cent, at an annual rate.

Will my right hon. Friend accept from me all the praise that can be handed to him and to the Government for their policy which has brought down the cost of living? Will he also bear in mind that prices that have come down can go up again if there is not an effort made to preserve a continuous downward trend in the price of goods? May I ask him, next time he broadcasts, makes a statement to the Press or speaks anywhere, to try to explain the Opposition's criticism of the Government's efforts?

I am grateful to my hon. Friend for his words of congratulation. I am sure that he agrees with me that the congratulations concerning the achievements of the past 18 months ought to go to the trade union movement—leaders and members—whose wages policy has made this achievement possible. Although I agree with my hon. Friend that it is an achievement of some substance, I cannot begin to explain the attitude of the Opposition, which has been solidly and continually against everything that we have done in the past two years.

While the recent reduction in the rate of inflation is obviously welcome, may I ask the right hon. Gentleman whether he realises that the annual figure of 9·9 per cent, which he has given and which is the lowest annual rate of inflation under this Government is still higher than the average rate of inflation under the last Conservative Government?

Of course I very much want to see a further reduction, and our policy will be directed towards that end. I am happy to be a member of a Government who have passed the single figure mark on the way down while the hon. Gentleman was a supporter of a Government which passed the single figure mark going up.

Does the right hon. Gentleman not think that the fact that prices have almost doubled during four years of Labour Government is total indictment of the Government? Since the right hon. Gentleman launched the Labour Party campaign in the Ilford, North by-election in a great glare of publicity, and since the electors of Ilford, North clearly showed what they think of the Government's policy, may we have an assurance that he will launch all Labour by-election campaigns from now until the next General Election?

The hon. Gentleman conveniently fails to mention a number of factors about the inflation rate over the past four years, such as an increase of 400 per cent, in oil prices which, I think he will agree, had some effect on prices in this country. As for the Ilford, North result, I can only repeat what I said earlier. I repeat it to the hon. Member in particular. The Ilford, North campaign was fought and lost on a different issue from prices.

Does my right hon. Friend agree that the trade union movement has played a large part in getting the inflation figures down and that the next Budget ought to have regard to this? Does he not agree that future financial policies put forward by the Government should ensure that the rate of increase is kept down in the years ahead? Will he look forward to the day when the inflation rate falls below 8·4 per cent., when we shall no doubt have a cheer from the Conservative Party?

The achievement is largely that of the trade unions. It must be built on and improved upon. The real reward of the two years of hard policy and sacrifice is that during 1978 and into 1979 there will be a real improvement in the standard of living. That will be because earnings will rise faster than prices. That is something for which we have all struggled in the past two years.

Does the right hon. Gentleman really expect congratulations from anyone on the fact that the Government have taken nearly four years to bring down inflation temporarily—very temporarily—to single figures? Has he any idea of the hardship that has been suffered during this period in which prices have almost doubled? Has he not grasped the fact that the people of this country, far from awarding accolades to the Government, will neither forgive nor forget that the Government are the Government of the highest prices ever? Does he not realise that the Ilford, North by-election was won on prices and not any other issue?

I am reluctant to take lectures from the hon. Lady about financial hardship. It does not seem to me to be a subject on which she is art authority. She ought to understand! that the people of this country are a great deal more understanding about politics and economic reality than she is. I do not believe that she commends herself to them by her constant strident attacks on every achievement by the Government.

Reverting to the question of the brewers, may I ask whether my right hon. Friend agrees that they have been profiteering at the expense of their customers for years? Notwithstanding the fact that they have made monster contributions to the Conservative Party for a long time and the fact that the official Opposition oppose price controls of any sort, may I ask my right hon. Friend to institute a price freeze on the products of the brewers? Does he apppreciate that if he were to do this the Chairman of the Price Commission would receive acclamation from the general public for a move which would be warmly regarded by the country?

I do not want to use words such as "profiteering", but I have said and will continue to say that I believe that over the past two years the brewers have made price increases which were far too frequent and in many cases unnecessary. As for action against specific breweries or the brewing industry as a whole, that must depend upon the report submitted to me by the Price Commission. One major brewer is now under investigation. The way in which the brewers' performance ought to be improved, together with their service to customers, is by a change in their relationships with their retail outlets, the "tie" and those things which create a semi-monopoly in the brewing industry. That is where the long-term action must be taken.

asked the Secretary of State for Prices and Consumer Protection whether he has appointed another vice-chairman of the Price Commission.

I very much regret that Dr. Hobday has found that pressure of other commitments forces him to resign from the part-time deputy chairmanship. I am most grateful to him for the valuable contribution he has made to the Price Commission's work. I am appointing to succeed him Mr. Leslie Pincott, the retiring managing director of the Esso Petroleum Co. Ltd.

Was it pressure of work that led Dr. Hobday to resign or was it a conflict on policy or a conflict of interest on his part?

Dr. Hobday issued a very clear statement saying that only pressure of work had made it necessary for him to resign, that he had enjoyed and valued his period with the Price Commission, and that he regretted that he could not continue with the Price Commission.

Is my right hon. Friend aware that many of us are becoming sick of this personal sniping at the Price Commission and that the public will benefit, certainly in the case of the Co-operative Wholesale Society, by about £2 million in a full year from every penny by which it has reduced the price of its tea, and that the £18,000 a year paid to Charles Williams and the money spent on the rest of the Price Commission is money very well spent?

We must just learn to live with the rather low standard of political debate that we have from the Opposition.

Does the Secretary of State admit that it is not because of any lack of effort on the part of the Price Commission that criticism comes from these Benches but, rather, because of lack of direction from the Government as to what the Price Commission is about? To ensure that the new deputy chairman has an equally enjoyable period of office to that of his predecessor, will the Government make it absolutely clear to him that it is competition that keeps prices down and not Government decree?

The hon. Gentleman is doing his best to reclaim a little lost territory, but it is not good enough. He asks for more direction from the Government, but he will recall that the Act setting up the Price Commission—admittedly he voted against it for two days and a night—requires the Government not to direct the Commission in any direct way but requires the Commission to take its own decisions about a number of matters, as British industry wished it would. That is the basic fact, which I am sure is right, about the Price Commission's existence.

asked the Secretary of State for Prices and Consumer Protection how many Price Commission investigations have been instigated so far.

The Price Commission has instigated 17 investigations, the reports on eight of which have been published to date. Two more are to be published shortly.

Is the hon. Gentleman aware that one of these investigations was of a large company in my constituency where the price increase was directly attributable to the price increase imposed by the British Steel Corporation? Is not this a waste of time and should not the legislation be altered so that at least prices of commodities such as steel, and also the British Steel Corporation, can be investigated?

It is inevitable when companies are investigated that some hon. Member's constituency will be affected. The nationalised industries are subject to investigation under the Price Commission Act.

Not steel.

The hon. Lady, from her sedentary position, is presumably speaking of the provisions of the European Coal and Steel Community which, as she rightly implies, preclude such an investigation.

In view of all the work that the Price Commssion is doing, will the Minister tell us what it costs together with the consumer advice centres which were mentioned in an earlier Question? What is the total cost?

I would not wish to give that information without notice.

Does my hon. Friend appreciate that the cost of the Price Commission is well worth paying in the fight against inflation? In that fight the trade union movement has not been coerced but, in a voluntary spirit in an effort to secure what is best for the nation, has co-operated fully with the Government. The Price Commission has a very onerous responsibility. Does not my hon. Friend agree that perhaps the apotheosis of hypocrisy was achieved by the hon. Member for Gloucester (Mrs. Oppenheim), who is the spokesman on prices for the Opposition, when on a television programme she showed the increase in the price of commodities in the shopping bag but took care not to say "If I had had my way and if we could have killed the Price Commission, under the Tories these prices would have been infinitely higher"?

The whole country will have noticed that the thrust of the Opposition's case this afternoon has been an attempt to demolish the Price Commission—(HON. MEMBERS: "Hear, hear."] No doubt it will also notice that that has now been confirmed. The general public will notice that throughout the lifetime of this Government the Opposition have consistently sought to attack root and branch all measures designed to hold down the cost of living.

Will the hon. Gentleman tell the House by how much the rate of inflation has gone down due to activities of the Price Commission? Come on—let us have it straight out.

The hon. Gentleman knows that the prime purpose of the Price Commission is to reinforce competition—which he ostensibly supports—but when any action is taken to sharpen competition he and his hon. Friends go to the defence of their industrial friends.

asked the Secretary of State for Prices and Consumer Protection what estimate he has made of the effect on prices of the Government's voluntary incomes policy black list.

Recent improvements in the inflation rate are largely the result of moderate wage agreements made over the past two and a half years. It would clearly be damaging to the prospects of general acceptance of this policy if some wage increases, outside the guidelines, were subsidised out of public funds.

Does the Secretary of State recognise that he has totally failed to answer the Question? He must recognise that if those who are potential tenderers—whether to local government, to central Government or to nationalised industries—were knocked out, that would be bound to have an effect in increasing prices? What does he intend to do to monitor the situation?

The hon. Gentleman misunderstands how what he calls the black list operates. It operates not as a punishment but as a deterrent. When the deterrent actually works and wage agreements are made within the guidelines, the company tenders and it and the Government live happily ever after.

What effect would it have on the morale of the trade union movement were it to be known that, through the financing of Government contracts, those employers which chose to break the wages policy were subsidised by the House, by the Government and by public funds, whereas those which kept to the policy gained no benefit?

That question is best left to the Opposition, but I put it to them in the hope of getting an answer. Do they or do they not, if they support the policy of moderate wage increases within the guidelines, want wage increases outside the guidelines to be paid for by the taxpayer and the ratepayer? I do not, but I do not know what the Opposition want.

Are there not more firms on the white list which have broken the guidelines but not been disciplined than there are on the black list? Therefore, is it not the apotheosis of hypocrisy to pretend that the policy is keeping down prices?

No. According to the CBI—the figures we have confirm the CBI's judgment—96 per cent, of companies which have made settlements in the last pay round have made those settlements within the terms of the pay policy. Therefore, those 96 per cent, of all British companies are able to contract with the Govenment and the so-called black list has no effect on them.

asked the Secretary of State for Prices and Consumer Protection if he will seek to amend the law so as to impose a duty on the Price Commission to consult representatives of small business men's trade associations before sending out questionnaries to firms.

No. It is already the normal practice of the Price Commission to discuss questionnaires with relevant trade associations.

Is not the Minister aware that some of the questions asked are highly detrimental to small business men, in that they force them to reveal details which are helpful to their competitors? Is it not highly immoral to bludgeon people—as was recently done to my constituent Mr. Philip Lawrence—with threats of High Court action and huge fines to make these harmful revelations?

It is of paramount importance that in proceeding with these investigations of companies which may or may not have acted in such a way as to raise prices unnecessarily the Price Commission should act on the basis of the fullest possible information. In order to avoid unnecessary burdens being placed upon companies, it is the practice of the Price Commission to discuss fully with the relevant trade associations the contents of the questionnaires and in many cases to discuss them with the firm itself.

In view of the highly unsatisfactory nature of the reply, I give notice that I shall seek to raise the matter on the Adjournment.

asked the Secretary of State for Prices and Consumer Protection when he referred the matter of costs and charges of coal merchants in West Wales to the Price Commissions; and if he will make a statement.

Under Sections 4 and 5 of the Price Commission Act 1977, the Commission decides which cases it will investigate. The Commission served notice on 28th October 1977 of its intention to investigate the margins of 14 coal merchants in an area of West Wales. The report was made to me and copies sent to the merchants concerned on 23rd January 1978, laid before this House on 27th February, and published on 28th February. I also announced on 28th February my decision on the recommendations made by the Commission.

What does the Secretary of State intend to do to ensure that so slipshod and unfair a report does not appear again? Will he ask why the Price Commission did not investigate the affairs of the Kilgetty Co-operative Society, which is one of the biggest merchants in the area?

I do not for a moment believe that the report was slipshod and unsatisfactory, although, again, I know that some of the people who were investigated thought it to be so, which is why I invited them to come to discuss the report with me—an invitation which they chose not to take up. What I intend to do to implement the recommendations of the report is to ask the Director General of Fair Trading to examine the contention that there is not competition between those coal merchants, and I am sure that all the supporters of competition on the Opposition Benches will applaud me for doing so.

asked the Chancellor of the Duchy of Lancaster on how many occasions he has visited the Duchy in the last 12 months; and what were the purposes of such visits.

I frequently find myself in Duchy territory, among other reasons because my constituency lies within the Duchy. I rarely find it necessary to enter the Duchy specifically on Duchy business.

Is it not time that my right hon. Friend did? Does he notice from the last accounts of the Duchy that the owner took £445,000 tax-free, compared with £415,000 tax-free the year before? How does my right hon. Friend think that that conforms with the Government's prices and incomes policy?

I am afraid that my presence in the Duchy territory is not necessary to control the Duchy's accounts.

I think that it is.

I do not think that my hon. Friend would be gratified if I spent my time in Duchy territory rather than here to answer these questions.

I think so, yes.

In the second part of his supplementary question, my hon. Friend takes the figures which he cites as referring to Her Majesty's personal expenditure. That, of course, is not the case.

asked the Chancellor of the Duchy of Lancaster whether he will detail the number of staff employed in the administration of the Duchy at the end of 1977, 1975 and 1973, and their total emoluments in each of those years.

The number of such staff has remained unchanged at 11 in each of the years mentioned, and I shall publish details of their salary costs in the Official Report. The Duchy follows Civil Service rates of pay, and all increases in this period have been in accord with Government pay policy.

From those interesting figures, does the Chancellor of the Duchy conclude that the Duchy represents a very successful family business, which has been handed down, by and large, from father to son since 1399? From his experience as its Chancellor, and from his experience as a successful business man himself, what guidance and help does the right hon. Gentleman have to offer to other family businesses which have been somewhat less fortunate?

I am not sure that the Duchy falls within my remit as co-ordinator in relation to small businesses, and I cannot say that it is to be regarded as a family business. I think that it could rightly be seen to be a family estate related to—

Feudal monopoly.

—related to the Royal Family. I like to believe that there are sermons in stones and lessons in trees, but I cannot derive great guidance in relation to small business activity from the Duchy work itself. The Duchy, I am satisfied, is very well run as a Royal estate in a manner which is pretty widely understood. As regards small businesses, I shall seek what inspiration I can from my Duchy duties and any other duties which are assigned to me.

asked the Chancellor of the Duchy of Lancaster whether he will list his official engagements for 6th March 1978.

asked the Chancellor of the Duchy of Lancaster whether he will list his official engagements for 6th March.

Apart from my duties in this House, I have one meeting today with ministerial colleagues.

Will the Chancellor of the Duchy find time today to explain what he meant in his speech a week ago at the Grosvenor House Hotel, at the conference organised by the Financial Times on the subject of world banking in 1978, a Press release of which was issued by No. 10 Downing Street? In particular, will he tell the House whether he really believes that we should put an end to the floating rate of sterling and return to a fixed parity?

I should certainly like to see an orderly system of co-operative management internationally in the parities of nations. The present disorder in the international currency markets may give great delight to the rhetoricians of freedom of markets without restriction in all circumstances. It gives no satisfaction to me or, I suspect, to the 15 million unemployed among the advanced countries of the world, whose employment prospects, in my view, are jeopardised by the growing instability of currencies in recent times.

In his capacity as Government economic adviser, could my right hon. Friend make a statement today about oil revenues? Does he agree that they should be used to help those most in need, whether they be on Clydeside, Merseyside, Tyneside or Teesside? Further, in view of the claim made this morning by the chairman of the Scottish National Party that the English are stealing Scotland's oil, will my right hon. Friend ask the parliamentary leader of the SNP to dissociate himself from such disgusting, divisive and racialist propaganda?

I agree with my hon. Friend in inviting a broad and benign governmental apportionment of such part of the wealth of the country as comes within the Government's purview. I do not think that an invitation from me to the right hon. Member for Western Isles (Mr. Stewart) is likely to produce the kind of response which my hon. Friend has in mind.

Is it now the Government's policy to seek an orderly return to a fixed rate for sterling?

I think that these matters require more careful explanation than can be given even in response to an indignant supplementary question from the hon. Gentleman. It is certainly the Government's policy to seek greater stability in world currency markets than we have been seeing of late. It is the Government's view that the present anarchy in international currency markets operates to the disadvantage of the peoples of the world, and of no country more dangerously than to our own.

Is my right hon. Friend aware that many of us on the Government Benches agree very much with his article in yesterday's Sunday Times and are deeply concerned and bitterly disappointed about the lack of success of the economic summit to do anything about these problems? If we cannot secure a more co-ordinated programme for reflation in the strong markets, shall we not have to take risks here at home which we do not want? Can my right hon. Friend treat it as top priority in his relations with the Prime Minister to get countries which are strong to reflate?

I think that my hon. Friend underestimates the efforts which have already been made by the Prime Minister and the Chancellor of the Exchequer in pressing for the kind of economic and monetary co-operation which he has in mind. There is no reason to believe that the processes of accommodation and international conciliation and negotiation are by any means exhausted. I suggest that my hon. Friend is wrong in concluding that the efforts arising from the summit have been as negative as he supposes. Many valuable results have come from these exchanges, and my hon. Friend must not be so impetuous as to believe that there is not hope for further important advances in international economic co-operation.

Will the right hon. Gentleman take it that many of us on the Opposition Benches find it extremely worrying that he does not have time within his diary today to concentrate on the problems of small business? He announced only one meeting today, and that with Ministers. Will the right hon. Gentleman take it that the Opposition await with interest his indications of what the Government will do to relieve small businesses of the burdens which they have imposed upon them?

The hon. Gentleman could not have carefully considered the terms of the Question and my answer. I was referring to my official engagements for today and not at all to my duties and work in terms of correspondence, conferences and discussions that take place every day. The hon. Gentleman can put his mind at rest. There is no working day when I and my staff are not seeking further achievement in the encouragement and support of small businesses. The hon. Gentleman takes a very negative view if he supposes that the help consists of removing obstacles which we ourselves have placed upon small businesses. The fact is that the last Labour Government were responsible for the Bolton Committee inquiry into what could be done for small businesses. We accepted its report and we shall continue our efforts systematically to improve the prospects and conditions of work of small businesses.

On a point of order, Mr. Speaker. In view of the failure of the Chancellor of the Duchy of Lancaster to agree with the Chancellor of the Exchequer about the Government's economic policy, I give notice that I shall seek to raise the matter on the Adjournment.

I allowed the hon. Gentleman to make his point of order in that way, but I hope that all hon. Members will continue to use the usual formula: "In view of the unsatisfactory nature of the reply".