Counter-Inflation Act 1973

PART II Prices, Pay, .Dividends and Rents

3 Commencement of Part II

(1) This Part of this Act shall come into force on the date on which the first order under section 2 of this Act is made.

(2) Subject to the following provisions of this section, the period for which section 2 of the [1972 c. 74.] Counter-Inflation (Temporary Provisions) Act 1972 has effect in accordance with section 1 of that Act shall terminate on the date when this Part of this Act first comes into force.

(3) No order or notice under section 6 of this Act shall apply where the relevant transaction (as defined by the order or notice) is effected before 29th April 1973, and for the purposes of subsection (1) of the said section 2 (prices and charges) and of the other provisions of the said section 2 as they relate to subsection (1), the period for which section 2 has effect shall terminate on 29th April 1973.

(4) No order under section 11 of this Act shall apply to increases of rent (as defined in the order) taking place before 29th April 1973, or to new lettings (as so defined) taking place before that date, and for the purposes of subsection (4) of the said section 2 (rents) the period for which the said section 2 has effect shall terminate on 29th April 1973.

(5) Nothing in this section shall be taken as extending the period for which the said section 2 would have effect apart from this section.

4 Duration and reactivation of Part II

(1) Subject to the provisions of this section, this Part of this Act shall cease to have effect at the expiration of a period of three years beginning with the date on which it first comes into force.

(2) The period for which this Part of this Act is in force may at any time be terminated by Her Majesty by Order in Council.

(3) If an Order is made under subsection (2) above, Her Majesty may by Order in Council again bring this Part of this Act into force for a period ending not later than 31st March 1976.

(4) An Order under subsection (3) above shall not be made unless a draft of the Order has been approved by resolution of each House of Parliament.

Prices and pay

5 Notification of price and pay increases, and approvals and consents

(1) The Minister may, in such cases as appear to him appropriate, by order make provision to ensure that the Agencies receive notice of increases in any prices, charges or remuneration in time to consider whether the increases conform with the relevant provisions of the code, and whether the Agencies should exercise the powers conferred by the following provisions of this Act in order to prevent those increases.

(2) The order may provide that, until the end of the period given for consideration of the proposed increase by the Agency, any implementation of the increase constitutes a contravention of the order.

(3) The length of notice required by an order under this section shall not exceed eight weeks.

(4) Schedule 2 to this Act shall have effect as respects—

(a) procedures for obtaining the Agencies' approval for increases, and

(b) procedures for giving consents overriding the Agencies' orders and notices about prices, charges and remuneration.

(5) An order under this section or under the said Schedule 2 may be made to come into force before the time when this Part of this Act is in force, and may require notices to be given before that time.

(6) An order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

6 Powers of Price Commission

(1) The Price Commission shall exercise the powers conferred by this section in such ways as appear to them appropriate for the purpose of ensuring that the provisions of the code which concern prices and charges are implemented.

(2) For the said purpose the Price Commission may restrict any prices or charges for the sale of goods or the performance of services in the course of business, where the relevant transaction is effected at a time when this Part of this Act is in force.

(3) The powers conferred by subsection (2) above shall be exercisable by order, or by notice given to the person, or each of the persons, selling the goods or performing the services subject to the restriction.

(4) Before making or giving an order or notice under this section (other than one which only removes or lessens a restriction), the Price Commission shall give 14 days notice to the persons selling the goods or performing the services which would be subject to the restriction, and shall afford to those persons an opportunity of making written representations to the Price Commission.

(5) If, in the case of an order under this section, it appears to the Price Commission to be impracticable to give notice under subsection (4) above to all the persons selling the goods or performing the services, they may instead publish 14 days notice of their intention to make the order in the Gazette and in such other ways as may be prescribed, and shall afford to all those persons an opportunity of making written representations to the Price Commission.

(6) Where an order or notice under this section is contravened, the liability for the contravention attaches to the person selling the goods or performing the services.

(7) This section has effect subject to section 3(3) of this Act.

7 Powers of Pay Board

(1) The Pay Board shall exercise the powers conferred by this section in such ways as appear to them appropriate for the purpose of ensuring that the provisions of the code which concern remuneration are implemented.

(2) For the said purpose the Pay Board may restrict any kind of remuneration for a period when this Part of this Act is in force.

(3) The powers conferred by subsection (2) above shall be exercisable by order, or by notice given to the person, or each of the persons, paying the remuneration subject to the restriction.

(4) Before making or giving an order or notice under this section (other than one which only removes or lessens a restriction), the Pay Board shall give 14 days notice—

(a) to the person or persons paying the remuneration which would be subject to the restriction, and

(b) to any organisation or organisations of workers which appear to the Pay Board to be concerned,

and shall afford to those persons an opportunity of making written representations to the Pay Board.

(5) If it appears to the Pay Board—

(a) in the case of an order, that it is impracticable to give notice under subsection (4) above to all the persons paying the remuneration, or

(b) in any case, that a substantial number of those receiving the remuneration are not represented by any organisation of workers, the Pay Board shall publish 14 days notice of their intention to make the order, or to give the notice, in the Gazette and in such other ways as may be prescribed.

(6) Where an order or notice under this section makes it illegal to pay remuneration of any amount, it shall also be illegal to enter into any agreement or arrangement whereby the employer makes to, or for the benefit of, the employee some payment, whether called remuneration or not, to compensate for the remuneration which it is illegal to pay; and an employer who enters into any such agreement or arrangement, or makes any payment pursuant to any such agreement or arrangement, contravenes the provisions of the order or notice.

8 Power to modify Acts about prices and pay

(1) The Minister may by order direct that—

(a) any provision of any Act, whether passed before this Act or later, which relates to prices, charges or to remuneration or other terms or conditions of employment, or

(b) any provision having effect under any Act within paragraph (a) above,

shall, while this Part of this Act is in force, have effect subject to such exceptions, modifications or adaptations as may be specified in the order.

(2) An order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

9 Restrictions on insurance premiums

(1) The Secretary of State shall have power to restrict insurance premiums, where the relevant transaction is effected at a time when this Part of this Act is in force.

(2) The powers conferred by subsection (1) above shall be exercisable by order, or by notice given to the insurer, or each of the insurers, affected by the notice.

(3) An order or notice under this section may make provision for the giving of consents by the Secretary of State to title doing of anything otherwise prohibited by the order or notice.

(4) Before making or giving an order or notice under this section (other than one which only removes or lessens a restriction), the Secretary of State shall give 14 days notice to the insurers who would be affected by the order or notice, and shall afford to them an opportunity of making written representations to the Secretary of State.

(5) If, in the case of an order under this section, it appears to the Secretary of State to be impracticable to give notice under subsection (4) above to all the said persons, the Secretary of State may instead publish 14 days notice of his intention to make the order in the Gazette and in such other ways as may be prescribed, and shall afford to all those persons an opportunity of making written representations to the Secretary of State.

(6) Where an order or notice under this section is contravened, the liability for the contravention attaches to the insurer who charges the insurance premium.

(7) An order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

Dividends and rent

10 Restrictions on dividends

(1) The Treasury shall have power to restrict the declaration or payment of ordinary dividends by companies at any time when this Part of this Act is in force.

(2) The powers conferred by subsection (1) above shall be exercisable by order, or by notice given to the company, or each of the companies, affected by the notice.

(3) Without prejudice to the generality of subsection (1) above, an order or notice under this section may—

(a) provide for the basis on which any comparison is to be made with the declaration or payment of any earlier dividends by the companies concerned ;

(b) prohibit any company to which it applies from making any such distribution as may be specified in the order or notice;

(c) prohibit any such company from assuming any obligation, whether conditional or otherwise, to make any such distribution as may be so specified; and

(d) make provision for the giving of consents, whether by the Treasury or by one of the Agencies, to the doing of anything otherwise prohibited by the order or notice.

(4) This section shall apply to every company incorporated under the law of any part of the United Kingdom; but nothing in this section shall apply to companies not so incorporated.

(5) An order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

11 Orders about rent

(1) The Minister may by order provide for restricting or preventing increases of rent which take place, or would take place, while this Part of this Act is in force, or for restricting rent payable on new lettings which take place while this Part of this Act is in force.

(2) The supplemental and incidental provisions that may be made by an order under this section may include provisions excluding, adapting or modifying any provision contained in, or

having effect under, any Act (whether passed before this Act or later) which relates to rent, and in the exercise of any power to make regulations or other instruments under any such Act regard may be had to matters connected with the operation of this section.

(3) An order under this section shall be subject to annulment in pursuance of a resolution of either House of Parliament.

(4) This section has effect subject to section 3(4) of this Act.