Prices and Incomes Act 1968
| Jurisdiction | UK Non-devolved |
| Citation | 1968 c. 42 |
| Year | 1968 |
Prices and Incomes Act 1968
1968 CHAPTER 42
An Act to prolong the duration of certain provisions of the Prices and Incomes Acts 1966 and 1967; to extend the maximum period for which standstills in prices and charges or terms and conditions of employment may be enforced under the powers of those Acts, and to confer further powers for requiring reductions in prices and charges and for the deferment of wages regulation orders and agricultural wages orders; to limit company distributions; to limit rent increases and mitigate certain past rent increases for dwelling-houses, and to enable rents of local authority housing to be changed without notice to quit being given; and for connected purposes.
[10th July 1968]
Be it enacted by the Queen's most Excellent Majesty, by and with the advice and consent of the Lords Spiritual and Temporal, and Commons, in this present Parliament assembled, and by the authority of the same, as follows:—
Part I
Regulation of Prices and Earnings
1 Continuation of Part II of Prices and Incomes Act 1966.
1. So long as this section has effect, sections 7 to 22 of the Prices and Incomes Act 1966shall continue in force without any extension by Order in Council under section 6 of that Act of the period for which they were brought into force under that section.
2 Extension of Prices and Incomes Act 1967 ss. 1 to 3.
2. For section 6(3) of the Prices and Incomes Act 1967there shall be substituted:—
(3) Sections 1 to 3 above shall cease to have effect at the end of the year 1969, but the expiration of those sections shall not affect any order or direction previously made or given under or by virtue of them for the application of any provision of the Prices and Incomes Act 1966 , nor the operation of those sections for purposes of any such order or direction and matters arising therefrom.’
3 Increase in length of standstill under Prices and Incomes Act 1967 s. 1 or 3.
(1) Where following a reference to the National Board for Prices and Incomes an order is made under section 1(2)(b of the Prices and Incomes Act 1967 for the application of any provision of the Prices and Incomes Act 1966, the maximum period for which the provision may be made to apply shall be as specified in subsection (2) or (3) below.
(2) In the case of an order under section 1(2)(b(b(c(c )).
(3) In the case of an order under section 3(1) of the Prices and Incomes Act 1967, the maximum period shall be a period ending eight months after the date of the order but beginning with that date or a later date (instead of a period of three months beginning with the date of the order or a later date, as provided by section 3(1)); and accordingly an order under section 3(1) may, in a case within subsection (1) of this section, be made not more than eleven months after the date of publication of the reference to the Board (instead of not more than six months after that date, as provided by section 3(2) of that Act).
(4) Where before the date of the passing of this Act an order has been made under section 1(2)(b ) or 3(1) of the Prices and Incomes Act 1967 for the application of any provision of the Prices and Incomes Act 1966, the order may be amended by a further order of the Secretary of State under this subsection so as to extend, within the limits permitted by section 1(2)(b ) or 3(1) as varied by this section, the period for which the said provision is to apply by virtue of the order amended; but—
(a ) an order shall not be amended by a further order under this subsection unless the like notice has been given of the proposal to make the further order as is required by section 1 or 3 of the Prices and Incomes Act 1967 for orders under section 1(2)(b ) or 3(1) of that Act; and
(b ) paragraphs 3 to 5 of the Schedule to that Act (which relate to the contents and publication of such a notice and other matters preliminary to the making of those orders, and to the parliamentary procedure on those orders) shall apply in relation to an amending order under this subsection as they apply in relation to those orders.
(5) Where in connection with a reference to the National Board for Prices and Incomes a standstill on an award or settlement is or has been imposed or continued under section 14 or section 15 of the Prices and Incomes Act 1966 , or under section 1, section 2 or section 3 of the Prices and Incomes Act 1967 , or under the last foregoing subsection, the award or settlement shall not be the subject of any second or further reference to the National Board for Prices and Incomes either during the period of standstill under the provisions of those sections as amended by subsections (2) and (3) of this section or after the expiration of that period; and on the expiration of that period no further standstill shall be imposed in respect of that award or settlement.
4 Power to require reduction of prices or charges.
(1) Where under section 2(1) or 2(3) of the Prices and Incomes Act 1966 any question is referred to the National Board for Prices and Incomes concerning prices for the sale of goods or charges for the performance of services, including charges for the application of any process to goods, the Minister or Ministers referring the question may include in the reference a direction to the Board to consider and, if the Board thinks fit, include in the Board's report recommendations for the reduction of all or any of the prices or charges; and if (not later than the time allowed under section 5 of that Act) a report of the Board on the reference is published containing such a recommendation, then subject to the provisions of this section the Minister or Ministers may by order direct that any of the prices or charges covered by the recommendation shall be reduced to such extent and for such period not exceeding twelve months (beginning with the date of the order or within three months thereof) as may be specified in the order.
(2) An order shall not be made under subsection (1) above in consequence of a report of the Board more than three months after the date of publication of that report; and before making an order under that subsection the Minister or Ministers shall—
(a ) publish in the Gazette notice of the proposal to make it, which shall invite representations about the proposal to be made in writing within a stated period (not being less than fourteen days) to him or them, or to such one of them as the notice may designate, by or on behalf of any persons or undertakings selling goods or performing services for which the prices or charges are affected by the proposal; and
(b ) take into consideration any representations so made.
(3) No order made for purposes of this section shall impose on any prices or charges a restriction more stringent than is recommended by the Board or more stringent than has been proposed by a notice given in accordance with subsection (2) above; but subject to that, an order under subsection (1) above may give effect with such modifications as the Minister or Ministers may think proper to the proposal of which notice has been so given.
(4) An order made for purposes of this section shall prescribe in such manner and by reference to such matters as the Minister or Ministers may think fit the prices and charges that may be lawfully charged in cases to which the order applies; but where anything is done with the written consent of a Minister making or joining in making an order under this section, it shall not by reason of that order be unlawful under this section.
Any written consent given under this subsection shall be notified in the Gazette.
(5) For purposes of this section the expressions ‘price’ and ‘goods’ have the same meanings as in Part II of the Prices and Incomes Act 1966 ; and, subject to the provisions of this section, the provisions of that Act specified in Schedule 1 to this Act (of which the subject matter is indicated in column 2 of the Schedule) shall apply for purposes of this section as they would apply if an order made for those purposes were an order under section 7(1) of that Act and if any overcharge beyond the price or charge permitted by an order under this section were an increase forbidden by that section.
(6) The taking of steps with a view to the making of an order under this section shall not prejudice the exercise of any powers conferred by the Prices and Incomes Acts 1966 and 1967 or either of them, and in particular steps may be taken at the same time in relation to the same matter both under this section and under section 1 of the Prices and Incomes Act 1967 with a view to the making of an order either under this section or under that section.
5 Deferment of wages regulation orders and agricultural wages orders.
5. The provisions of Schedule 2 to this Act shall have effect to authorise the deferment of the wages regulation orders and agricultural wages orders there mentioned.
Part II
Regulation of Company Distributions
6 Restriction on ordinary dividends, and related restrictions.
(1) Subject to the provisions of this section, the Treasury may by order applying to any description of companies specified in the order, or by directions applying to any companies specified in the directions, prohibit the companies from declaring, without first obtaining the consent of the Treasury, ordinary dividends for any financial year at a rate greater than that paid for the preceding financial year.
(2) For purposes of this section ‘ordinary dividend’ means a dividend payable in...
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