HC Deb 20 April 1971 vol 815 cc921-3
2. Mr. Carter

asked the Minister of Agriculture, Fisheries and Food how many letters he has received since 1st January on food prices.

Mr. Prior

About 120.

Mr. Carter

I thank the right hon. Gentleman for that answer. Does he appreciate that his policy, which is deliberately encouraging increased food costs, has dealt a savage blow at the living standards of millions of people, particularly old-age pensioners? Is he aware that he is likely to go down in history as the Minister who turned the saying "Half a loaf is better than none" into a living reality for many thousands of families?

Mr. Prior

The hon. Gentleman must not exaggerate the effect of increased food prices resulting from the introduction of the levy system. As I said earlier, the increase which will be brought about by the levy system over the 12 months starting next July will be one-half of 1 per cent. on the cost of food index. As the food index represents about one-quarter of the cost of living index, the hon. Gentleman cannot possibly justify his accusations.

Mr. Peter Mills

Has it been brought to the attention of my right hon. Friend that recent legislation in the transport sphere has increased the cost of distribution by 15 per cent., and that most of this legislation was introduced by the Labour Government?

Mr. Prior

I do not think there is any doubt that the effects of the Transport Act, introduced by hon. Gentlemen opposite when in office, have been extremely severe on the cost of food and that this is a very important factor to be taken into consideration.

Mr. Barnes

Is the right hon. Gentleman unaware that in the first three months of this year non-seasonal food prices rose by three points on the food index, and that it now appears that only a comparatively few retailers will pass on the cut in S.E.T.? Does he not think that his non-intervention on food prices is contributing greatly to the growing feeling among people that the Government do not have the right policies to deal with inflation?

Mr. Prior

We must get clear what happens when we have intervention. This time last year it could be assumed that we had intervention under the Labour Government, but at that time, in the three months from January to March, the cost of food index went up by 2.2 per cent., whereas this year it has gone up by 1.6 per cent. [Interruption.] I am not making that as a point about food price increases. I am merely saying that I do not believe that interventionist policies work as well as competition.