HC Deb 16 May 1972 vol 837 cc213-8
1. Mr. William Price

asked the Minister of Agriculture, Fisheries and Food what has been the percentage increase in food prices since June, 1970.

2. Mr. Ashley

asked the Minister of Agriculture, Fisheries and Food if he will make a statement on the trend of food prices since he took office.

11. Mr. Carter

asked the Minister of Agriculture, Fisheries and Food by how much the cost of food has now risen since 18th June, 1970.

33. Sir G. Nabarro

asked the Minister of Agriculture, Fisheries and Food whether he will state the increase in retail food prices during the 22 months ended 30th April, 1972, or the nearest convenient date.

The Minister of Agriculture, Fisheries and Food (Mr. James Prior)

Between 16th June, 1970, and 21st March, 1972, the latest date for which information is available, the Food Index rose by 17.2 per cent.

Mr. Price

Is not the Minister thoroughly ashamed of that answer? Does not he understand what that figure means to millions of pensioners and low-paid workers in this country who regard him as the biggest disaster in the present Government, in spite of all the competition? When will he do something about food prices?

Mr. Prior

Prices are still going up, but much more slowly than during the last two years or more, and I expect the improvement to continue over the next few months.

Mr. Ashley

We all admire the Minister's great juggling skill in playing about with disastrous figures for food prices, but is it not time that he admitted that the policy of relying on competition to restrain food prices has failed completely? Is it not time for the Minister to give serious consideration to an effective system of early warning as a first step towards restraining food prices?

Mr. Prior

As the hon. Gentleman will realise when we come to a later Question on the Order Paper, there was a considerable acceleration of prices during the last three years of the Labour Government. That acceleration has now ceased and we are on a downward path.

Hon. Members

Oh.

Mr. Leslie Huckfield

Read the Daily Mirror.

Mr. Prior

The policies about which the hon. Member for Stoke-on-Trent, South (Mr. Ashley) speaks are totally irrelevant.

Sir G. Nabarro

An increase of prices of one-sixth over a period of approximately 22 months is a very grave matter indeed—[HON. MEMBERS: "Hear, hear."]—but may I congratulate my right hon. Friend on causing this upward curve to flatten out? Would he give statistical respectability to his statement that there has been a great lessening in the rate of increase in food prices in recent months?

Mr. Prior

Yes, Sir. It is a little too early to give the really good figures that are becoming available, but in the latest six months the increase in the price of non-seasonal foods was 3.8 per cent. compared with 7.3 per cent. for the previous six months.

Sir G. Nabarro

Well done!

Mr. Carter

Was not the introduction of decimalisation responsible for a large part of that price increase'? In view of the imminent introduction of value added tax and the even bigger opportunities that this offers to traders, wholesalers and so on to make even larger unjustified increases in prices, does not the Minister consider that he should recommend to his right hon. Friends the establishment of a supervisory body to oversee the introduction of VAT?

Mr. Prior

No, I do not think that the latter part of the hon. Gentleman's suggestion is necessary. The hon. Gentleman talks about the introduction of decimalisation, but I thought that the Labour Party were in Government at that time.

Mrs. Kellett-Bowman

What effect would a long-term dock strike have on food prices?

Mr. Prior

There is no doubt that a long-term dock strike would have an enormous effect on food prices. But I must also say that, in other respects, giving way to demands for large wage increases is another certain way of putting up prices.

Mr. Buchan

Does the Minister agree that he has done a great deal more on the increase in food prices than all the trade unionists in Britain could do put together'? Is it not shameful to hear the wriggling at present following the promises that the Conservatives would act to reduce prices at a stroke? The Minister should face up to this question or resign.

Mr. Prior

As usual, the hon. Gentleman is quite wrong. The introduction of the levy system has had a marginal effect on prices. What it has done is to give confidence to agriculture, so that we are now producing more food at home and are thus less dependent on high-priced food imports.

3. Mr. Skinner

asked the Secretary of State for Agriculture, Fisheries and Food what has been the increase in food prices from March, 1971 to March, 1972.

Mr. Prior

Between 16th March, 1971 and 21st March, 1972 the Food Index rose by 11.1 per cent.

Mr. Skinner

I thought we were going to hear some better figures, but they are worse. If a railway man gets an 8 per cent. or 9 per cent. wage increase after tax, stoppages and so on, who is doing the gazumping?

Mr. Prior

I do not think that question is for me.

Mr. Evelyn King

Is it possible for my right hon. Friend to quantify that portion of the increase which is due to inflationary wage settlements, which are supported by the hon. Member for Bolsover (Mr. Skinner)?

Mr. Prior

During the past year about 30 per cent. to 50 per cent. of the increase in food prices was due to world supplies, and the remainder is very largely due to inflationary wage claims.

9. Mrs. Renée Short

asked the Minister of Agriculture, Fisheries and Food what changes in food prices have occurred since 18th April; and what effect these have had on the overall increase in food prices that has occurred since June, 1970.

Mr. Prior

In my replies earlier today to the hon. Member for Rugby (Mr. William Price) and others, I gave the results of the Food Index on 21st March. which is the latest date for which information is available. But I am confident that the mid-April results, which will be available shortly and will reflect the full impact of the measures I announced on 8th March, will show a marked improvement compared with previous months.—[Vol. 832, c. 359–60.]

Mrs. Short

Does the right hon. Gentleman recall that, when I last asked about the increase in food prices since the General Election—that was on 18th April—he told me that food prices had risen by 16 per cent. since June, 1970. If the truth were known, the figure now must be about 20 per cent. How does he think that railway workers, with a take-home pay of £13.50, £14 or £14.50 a week, can face the situation brought about by his Government?

Mr. Prior

If the hon. Lady had been present for earlier Questions, she would have heard—

Mrs. Short

I was here at the beginning.

Mr. Prior

If she had kept her ears open, the hon. Lady would have heard the correct answer. However, that aside, the food price situation, as I have said, is now under better control than it has been for well over two years, including the last period of the Labour Government. I hope that she will recognise that.

Mr. Charles Morrison

Can my right hon. Friend give any estimate of the effect of the C.B.I. initiative on food prices?

Mr. Prior

The C.B.I. initiative has been extremely helpful. In the period since last July, when it came into operation, there has been a marked fall in the food price index rise compared with earlier periods.

Mr. Buchan

Does not the Minister realise that the whole country is becoming sick of this appalling state of affairs? Although he constantly says that things are getting better, all the figures show that things are getting worse. Will the Minister acknowledge that he has shown no evidence of being able to keep the situation under control but has thrown British housewives entirely on to the mercy of the market? Will he face the situation and accept his responsibility?

Mr. Prior

I make two points in reply to that. First, we are dealing with an index which is running at least two months behind the facts. The hon. Gentleman will find that the news to come is good—[HON. MEMBERS: "Oh."]—certainly, yes, and I hope that when they see the figures hon. Members opposite will greet them as good. Second, the hon. Gentleman will see from figures to be given in reply to a later Question that the increase in food prices was going at an accelerating rate before the election. That is why we had an election in June, 1970.

Mr. Fell

We are all delighted that at least the speed of price rises has been slackening over the last six months, but may we have some help from the Minister regarding what he expects to happen over the next two years?

Mr. Prior

It would be wrong to prophesy about the next few years, but there are at least two good signs: first, that home production is expanding; second, that the improvement of the last few months will continue over the next few months.