HC Deb 11 October 1939 vol 352 cc327-9
45 Mr. De la Bère

asked the Chancellor of the Duchy of Lancaster (1) whether he can make some statement in justification of the increase in the price of bread in London which has taken place in connection with the rise of ½d. to 8d. for the four-pound loaf;

(2) whether he can give some assurance that the Food Council will continue to act and to protect the public against unjustifiable rises in the price of bread, in view of the fact that the price of flour is now controlled by the Government;

(3) what steps it is proposed to take to safeguard the consuming public against any further increases by the London Employers Joint Price Committee of the baking trade in the price of bread in the London area?

The Chancellor of the Duchy of Lancaster (Mr. W. S. Morrison)

With my hon. Friend's permission, I will answer these questions together.

Mr. De la Bère

On a point of Order. May we not have them taken separately?

Mr. Morrison

Bread prices in peace time were fixed in accordance with arrangements set up by the Food Council. The Ministry of Food have taken over the functions of the Food Council in this respect, and it is proposed to continue the above arrangements with such modifications as may be necessary to meet war conditions. If, however, it should become necessary I shall not hesitate to use my power to fix maximum bread prices. The present price of flour is below the point which, under the peace-time arrangements, would have justified an increase of ½d. in the 4 lb. loaf. Such an increase, however, has recently been approved in view of the fact that shortly before the outbreak of war the London bakers had to meet an increase of wages, the effect of which on the price of the loaf was under consideration by the Food Council at the outbreak of war, and in addition the costs of distribution in London have increased since the outbreak of war.

Mr. De la Bère

Does my right hon. Friend remember that in July and August of this year, 1939, wheat touched the lowest price on record for the past 300 years and flour was prevented by the Millers Mutual Price-Fixing Associations from falling in the corresponding way? Could he tell us what is the relationship between the London Employers' Joint Price Committee and the Millers Mutual Price-Fixing Association? Are some people to be allowed to go on pulling strings and manipulating the price of flour? It is an absolute scandal.

Mr. Morrison

I hope my hon. Friend will put down his question with regard to the relationship of the two bodies. I have pointed out that the rise in the price of the loaf is not due to the rise in the price of flour. It is due to higher wages being sanctioned in the baking industry before the outbreak of war.

Mr. John Morgan

Is the right hon. Gentleman saying that the halfpenny rise is due only to the increased cost of labour, and is he not taking into account the fact that the Wheat Commission have reduced their charge by is, a sack?

Colonel Baldwin-Webb

Arising out of the previous statement, has not the question of war risks insurance to be taken into account in this matter?

Mr. Banfield

Is it seriously suggested that the minimum of 60s. a week for a 48-hour week has any effect upon the matter?

Mr. Morrison

I will endeavour to answer some of those questions. The position with regard to the price of bread is as follows: When the war broke out the: Food Council was examining claims put forward by the bakers for an increase in the price of bread. Among the additional costs which they brought before the Food Council was this increase in wages, and I am informed that had the Food Council completed its inquiry this increase would have been sanctioned.

Sir P. Harris

May we know why the Food Council has been liquidated and what has happened to its members?

Mr. Morrison

The functions of the council have been absorbed by the Ministry of Food for the protection of the consumer.

Mr. De la Bère

I asked, on a point of Order, that my questions should be taken separately. With great deference, Mr. Speaker, Question 46 has not been answered at all. Might I ask the right hon. Gentleman, when I next put questions on the Order Paper, that he will endeavour to get some sense and meaning into the answers which he gives? This is a matter of national importance.

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