HC Deb 30 January 1978 vol 943 cc18-9
15. Mr. Edwin Wainwright

asked the Secretary of State for Prices and Consumer Protection what, in annualised terms, was the increase in the retail price index since 1st August 1977 up to the latest available month; and what were the corresponding figures for the retail prices of potatoes, potato crisps and frozen chips, respectively.

Mr. Maclennan

Between 16th August and 13th December 1977 the retail price index rose by 2 per cent., equivalent to 6.1 per cent. on an annualised basis. Short-term fluctuations may, however, make annualised figures misleading, particularly for individual products. Since August the prices of raw potatoes and of potato products have fallen by 15 per cent. and 10 per cent. respectively.

Mr. Wainwright

I commend the Secretary of State and the Department for holding down price increases as they have done. I know that it has been a hard and serious struggle for them. The Secretary of State ought to write a book about it. Is my hon. Friend sure that the Price Commission has the power that it should have? Is he aware that the prices of potato crisps and frozen chips have increased far beyond the price of raw potatoes? Does he realise that even fish shop owners, who are usually glad when frozen chips go up in price because it means less competition for them, are complaining that too much profit is being made from frozen chips?

Mr. Maclennan

I am grateful to my hon. Friend for his general commendation of my right hon. Friend the Secretary of State. The price of potato products did not rise as sharply as the price of raw potatoes, and therefore the subsequent decline has not been quite as sharp. On potato crisps, following the intervention of the Price Commission in the summer, the packet and its contents were enlarged to take account of the fall in price. On chips, there is a certain amount of cross-subsidisation to offset other increases, particularly in the price of fish. The competition provided for chip manufacturers by fresh potato producers' prices will, I believe, help to hold down chip manufacturers' costs.

Mr. Freud

Does the Minister accept that farmers in the Isle of Ely will be disappointed at the figure of 15 per cent., because one year ago potatoes were fetching £350 a tonne and farmers are now having a job getting more than £30 a tonne?

Mr. Maclennan

The hon. Gentleman draws attention to the wild fluctuations that have taken place in the price of potatoes. That is an inevitable feature of the farming industry.