HC Deb 24 January 1968 vol 757 cc379-80
1. Mr. James Hamilton

asked the Minister of Agriculture, Fisheries and Food if, in view of the recent devaluation of the £ sterling and the reduction in world grain prices, he will undertake to refer proposed increases in the price of bread to the National Board for Prices and Incomes.

29. Mr. Farr

asked the Minister of Agriculture, Fisheries and Food what is his estimate of the percentage increase in bread prices due to devaluation.

The Joint Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. James Hoy)

On 11th January, my right hon. Friend the Secretary of State for Economic Affairs and my right hon. Friend referred to the National Board for Prices and Incomes for examination the proposed increases in the price of flour attributable to increased costs due to devaluation. As stated in the terms of this reference, the Government's decision on the proposed increases in bread prices will take account of the Board's recommendations on flour prices. It would not be proper for me to anticipate the Board's findings.

Mr. Hamilton

I thank my hon. Friend for that reply. As, of course, he knows, there is a world abundance of grain, the main ingredient for baking bread. With that in mind, does he not agree that no increase is necessary? Does he not also agree that any such increase would be a further imposition on the lower-paid workers, particularly those with large families?

Mr. Hoy

I am sure my hon. Friend would not expect me to anticipate what the Board will say. I remind him that the baking industry's costs and prices have been thoroughly examined by the Board. They were examined in 1965 and twice in 1966 and reports issued upon them. He can be assured that all relevant factors will be taken into account.

Mr. Farr

This is a critical matter. Over two months after devaluation date, the Minister says he is not able to give an answer to my Question relating to an estimate. Surely he should have worked out these matters before devaluation?

Mr. Hoy

I am sure the hon. Member will agree that we should not anticipate the findings. Having referred the matter to the Board, it would be unfair to anticipate what the findings may be.