Inflation has got worse, not better, since the imposition of Tory 'controls". This is one of th rematic facts that emerges from the first Report of the Price Commission, released last weel During the seven months of the Tories" "counter-inflation programme", prices in the shops have been going up at the rate of about 7% during the preceding year and a half, when the Confederation of British Industries was operating 'voluntary controls", and just under 10% for the period before that when no restrictions at all were in existence.
"controls", compered with 7,5% and 12% in the preceding periods. The biggest cause both of the rise in food prices, and shop prices in general, has been the phenomenal increases in the price of fresh foodstuffs.
The increases in the prices of just two itams in the household budget - food and housing -account for 60% of the increases in all prices under the Tory controls. These are, of course, the most important items in the working cass budget.
By putting the figures on rising prices together with those on wage rises, we can see what effect Tories' policies have had on working class living standards. Under the Tory controls so far, averpurchasing power of the average paypacket has dropped a full percentage point. The direction in which things are heading is even more worrying. Up until the freeze, wage vere going up by more than 13% a year on average. This was well ahead of shop prices, ans actually meant that the average paypacket was worth about 5% more each year, But since the freeze, wage increases have fallen below 8% a year. This means that the average paypacket is now dropping in value by almost 3% a year, The Price Commission in the first two months of its existence approved rises in the prices of 82 different items, worth over E3,500 million in sales each year. It has permitted the prices of these products to be put up by more than 6% on average.
By the and of May another 213 applications for price rises were still in the pipeline. These concerned another 4,000 million of sales a year.
the policies on which it rests are simply tools of capitalist exploitation. They do nothing to serve the interests of the working class.
to protect the profits of the capitalist class at the expense of the living standards of working people. in the next big round of working class struggles the aim must be to sweep away such ruling class weapons as the Prices Commission, the Tory 'counter-inflation programme' etc. This will mean attacking the lynchpin of this whole set up - it must become a struggle to kick out the Tory Food prices have suffered the most. They have been rising at the rate of 21.5% a year under Tory age earnings have risen by 5%, while prices have gone up by more than 6%: in other words the real The effect of all these price rises will be to take several hundred million pounds out of the pockets of working people in order to protect the profits of the capitalist class. The Price Commission and The Tories may have failed to cotrol prices, but they have suconeded in their most important aim: apart at the seams. This is the only conclusion that can be drawn from all the facts and figures emerging from various Government offices and agencies, including the one at the centre of Tory price strategy - the Price Commission. In 1969, Joseph Godber, the present Tory Minister of Agriculture, said that, food prices will rise over a 3 year period by some 5-63 (that is less than 256 a year)'. Yet within one year of this speech, food prices had risen by over 7%. By the end of his three years, they were up by almost 30% Food prices have now risen by almost 50% since then. Clearly. Godber has been forced to cat his words many times over the past few years. uP prices, In exchange the capitalists are allowed to pass on any problems they encounter from rising costs to the consumer. This would still leave open to the capitalists the chance to increase profits out of increased productivity once they have covered the 50% share of any increased wage costs that cannot be passed on by raising prices. However, the profit margins of any firin are to be restricted to the average of the best two of its last five years. For firms making a loss, virtually aUl cost increases can be passed on, including 100% of any increased wage bill. Price rises may also be permitted for firms who can prose that increased profit margins are necess. ary to finance new capital investrient, The overall effect of these measures is to