HC Deb 25 July 1939 vol 350 cc1222-4
6. Mr. De la Bè

asked the President of the Board of Trade whether, since the Board of Trade have no control over the price of bread, and the price of bread in London is regulated voluntarily in accordance with the Food Council's scale, but the Food Council have no authority or control in this matter, he will introduce legislation to give the necessary control or authority to the Food Council to deal with these matters?

Mr. Stanley; No, Sir

The voluntary regulation of bread prices has worked satisfactorily for a number of years. As my hon. Friend will remember, the question of granting powers to fix maximum prices for certain commodities (including articles of food) was the subject of debate in this House as recently as 10th February last.

Mr. De la Bè

Is my right hon. Friend aware that there is one central, vital fact arising out of this question, and that is that the Millers Mutual Association, a price-fixing association, have falsified the price of flour for many years, and will the Board of Trade no longer seek to evade this issue, which is very important?

7 and 14. Mr. De la Bè

asked the President of the Board of Trade (1) whether, since the present price of flour is 27s. a sack in London and the present price of wheat is the lowest on record, he will have an inquiry made as to the relationship between the present price of flour and the low record price of wheat; (2) whether, since the present price of flour is 27s. per sack of 280 lb., he will set up some body to investigate the origin of and justification for this price, since the cost of production of good Kansas wheats, entirely satisfactory for flour for bread making, is, approximately, 16s. per sack of 280 lb. delivered?

Mr. Stanley

As I informed my hon. Friend on 20th June, the Food Council keep a continuous watch on the relation between the prices of wheat, flour, and bread. I see no reason for the institution of a special inquiry such as is suggested. I would point out that the price of 27s. a sack of flour includes a quota payment of 5s. 6d. under the Wheat Act. I am informed, moreover, that the London price of flour cannot be related solely to the price of Kansas wheat, which is one of the cheaper wheats.

Mr. De la Bè

Is my right hon. Friend aware that quota payments are quite beside the point, and that the chairman of the Food Council told me himself that they had not got the necessary powers or authority, and will he take steps to give the Food Council the necessary powers or authority? Will he be kind enough to answer?

Mr. Stanley

One of the results of the Bill which we discussed on 10th February would have been to give this power, but my hon. Friend was one among the majority of the House who voted against such a Bill being passed.

Mr. Thorne

Is the right hon. Gentleman aware that in consequence of the relations between the selling price of flour and the selling price of bread, bread is coming down ½d. a loaf on Monday?

Mr. De la Bè:re

Is it not a fact that I have asked for a Departmental Committee to consider this whole scandal, and that the President of the Board of Trade has resisted me time after time? On a point of Order. My right hon. Friend told me that he would answer Question No. 14 with Question No. 7. but actually he did not do so. I think he omitted unintentionally to answer it, so may I have an answer to No. 14 now?

Mr. Speaker

I think the right hon. Gentleman answered it.

Mr. De la Bè

With great deference and respect Sir, I am afraid he quite forgot to do so.

11. Major Carver

asked the President of the Board of Trade whether he is aware that although a heavy fall in the price of wheat has taken place, and a consequent reduction in the price of flour, yet the retail price of the loaf of bread, which constitutes the daily purchase of most families, has not altered for some months; and what action he proposes to take to prevent profiteering amongst bakers?

Mr. Stanley

The price of bread in London is regulated voluntarily in accordance with the Food Council's scale, under which the price of the 4-lb. loaf varies by ½d. for every 4s. rise or fall in the price of a sack of 280 lbs. of straight run flour. If the price of a sack of flour does not rise above the figure of 27s., to which it was recently reduced, the price of the loaf should be reduced to 7½d. on the 31st July. The Food Council's scale sets a standard which is followed in many other parts of the country.

Mr. De la Bè re

What is the use of this Food Council scale if it is permitted to be falsified? We shall never get any further with this. Is it not a national scandal and utterly vicious that this price-fixing association should go on?

Mr. Stanley

We are going to get a ½d. off the loaf next Monday.

Mr. De la Bè re

Is my right hon. Friend aware that the high price of bread is not the fault of the bakers, but of the Millers Mutual?