HC Deb 15 May 1928 vol 217 cc836-7
9. Lieut. - Commander KENWORTHY

asked the President of the Board of Trade if his attention has been called to the recent rises in the wholesale price of flour due to the operation of the wheat pools in the wheat-producing countries in the American continent, which have forced up the price despite great quantities of wheat that could be immediately placed in the market; if he is aware that the trade organisation of the master bakers in England are considering the addition of a halfpenny to the price of the quartern loaf as a consequence; and whether the Government is watching the situation in the interests of the consumers of this country?

Mr. H. WILLIAMS

The recent increase in the price of flour is the result of an increase in the world price of wheat, which, according to expert opinion, is due principally to adverse weather and crop reports. I am aware that the associations of London bakers have derided to recommend their members to increase the price of the 4 lb. loaf by ½d., and this increase is not in excess of the scale recommended by the Food Council. The answer to the concluding portion of the question is in the affirmative.

Lieut. - Commander KENWORTHY

Have the hon. Gentleman's advisers told him that there is a general world shortage of wheat?

Mr. WILLIAMS

No; the advisers have not told me that, but they have told me that the weather reports in the United States are very adverse, and that that has had, for the time being, at any rate, an effect on prices.

Lieut. - Commander KENWORTHY

Has the hon. Gentleman not seen that the "bears" have been caught in Chicago in the wheat pit, and that there has been an excess of wheat, which has been artificially held off the market?

Mr. WILLIAMS

It may be that the "bears" have been caught, but in due course the consumers will benefit.

Mr. HANNON

Is it not the fact that, while the price of wheat is going down, the price of bread is going up?

Mr. WILLIAMS

As most hon. Members know, the Food Council approved a scale relating the price of flour to the price of bread, and that scale is followed. The flour prices at the moment are in the range of the 9½d. loaf.

Lieut. - Commander KENWORTHY

Are we not at the mercy of the wheat pools, and is the Board of Trade taking any steps in the matter?

Mr. SPEAKER

The Government are not responsible for that.

Mr. MACLEAN

Will the hon. Gentleman suggest to the Food Council the necessity of revising this scale?

Mr. WILLIAMS

I do not see any particular necessity for revising the scale. It was drawn up after careful examination, and as far as I know the Food Council are satisfied that it is appropriate.

Mr. MACLEAN

Is it not the case that, with the price of flour going down, the price of bread is rising, and does not that show the necessity of a revision of the scale?