HC Deb 26 June 1968 vol 767 cc416-7
2. Mr. Gwilym Roberts

asked the Minister of Agriculture, Fisheries and Food what steps his Department are taking to ensure that when the world market price of cashew nuts falls there is a corresponding reduction in the price of Snakpak salted cashew nuts to offset the recent 50 per cent. price increase; and what machinery is available to his department to ensure that the public receives the full benefit of downward movements in world food prices.

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

The firm has been told that if the world price of cashew nuts falls significantly, this should be reflected in its selling price, in accordance with the criteria for price reductions set out in Cmnd. 3590.

On machinery, my Department keeps first-hand prices of foodstuffs under constant review. Normally, when these prices fall by enough to reduce costs significantly, competition ensures that the fall is passed on to the public. But if this does not seem to be happening, my Department pursues the matter with the parties concerned.

Mr. Roberts

Would my hon. Friend accept that this is not merely a "nuts" Question? Would he not agree that, whereas the market mechanism is certain to make sure that the housewife loses from the upward swing in world prices, the mechanism is inadequate to ensure that she gets the benefit of a downward turn in world prices?

Mr. Hoy

Yes, I agree with my hon. Friend that this is important. If world market prices come down, we expect that reduction to be reflected in the price. My hon. Friend must not overlook, on the other hand, that the price of potatoes, Danish and Dutch butter, New Zealand cheddar, and so on, have all recently been falling, to the advantage of the housewife.