§ 6. Mr. Juddasked the Minister of Agriculture, Fisheries and Food whether he will make a statement on food price increases since devaluation.
§ 22. Mr. Staintonasked the Minister of Agriculture, Fisheries and Food if, in the light of developments since November, he will make a statement as to the effect on food prices of devaluation and related Government measures.
§ 25. Mr. Peter Millsasked the Minister of Agriculture, Fisheries and Food what has been the percentage increase in food prices since 18th November, 1967; what proportion of this he attributes to devaluation and to other factors, respectively; and by what criteria he allows prices to rise.
§ Mr. HoyWe estimate that food prices have risen by about 3 per cent, since devaluation. Much of this rise is due to the normal seasonal increases at this time of the year and to the effects of the 391 foot-and-mouth epidemic on the price of meat. There are too many factors affecting the price of food for us to estimate at all accurately the future effects of devaluation and related measures.
The criteria for price increases are set out in the White Paper on Prices and Incomes Policy after 30th June, 1967.
§ Mr. JuddWill my hon. Friend not agree that in the difficult year ahead the success of the Government's economic policies will depend largely upon a demonstrably effective policy in controlling food price increases?
§ Mr. HoyOh, yes, indeed. That is why we have the warning system. I can assure my hon. Friend and the House that we regard this as a very important matter and we do our very best.
§ Mr. Peter MillsWill the Joint Parliamentary Secretary agree that many of these increases are directly attributable to Government legislation? Does it not seem very strange that the Prime Minister should make statements on television about the value of the £ knowing only too well the effect of the legislation and actions that he has taken to cause this tremendous rise in prices?
§ Mr. HoyThe hon. Gentleman may not have heard the first part of my Answer. I said that there were many seasonal factors involved in these increases. Of course, there are certain other actions which tend to put prices up—I do not deny this for a moment—but it is our job to see that they are kept as low as possible.
§ Mr. FortescueIs it part of the Government's post-devaluation policy to allow food prices to rise in order to mop up surplus purchasing power?
§ Mr. HoyNo, I said nothing of the kind. That is not the policy. What I said was that we would attempt to substitute home production for what we are presently importing.