§ 1. Mr. Gordon Prentice (Pendle)What representations she has received from independent bakers on supermarkets selling bread below cost price. [40953]
§ The Minister for Competition and Consumer Affairs (Mr. Nigel Griffiths)I have received representations from my hon. Friend on behalf of W. H. Oddie Ltd., and from him and others on behalf of the National Association of Master Bakers, complaining about predatory pricing of bread.
§ Mr. PrenticeOn Monday this week, I was in Blackpool speaking to the annual conference of craft bakers, of whom there are about 8,000 across the country. They are very concerned that supermarkets are selling bread as a loss leader, for less than the cost for which the small craft baker can bake it. Given the importance we attach to preserving vibrant town centres and our desire to keep bakeries in our high streets, will my hon. Friend give an assurance that the Competition Bill, which we debated on Monday, will be effective in outlawing that sort of predatory pricing?
§ Mr. GriffithsThe new Competition Bill introduces tough provision against the abuse of dominance in the market, including predatory pricing. In future, selling products at below the average variable cost of production will be presumed to be predatory, without anti-competitive intent having to be proven.
§ Mr. Michael Fabricant (Lichfield)It is good to hear that the hon. Member for Pendle (Mr. Prentice) has gone to Blackpool, given that the other members of his party 498 have decided that it is not good enough for them. Has the Minister received any representations about the undersale in supermarkets of Calvin Klein and Levi jeans?
§ Mr. GriffithsI have received representations from supermarkets asking for support for that practice. I have to inform the hon. Gentleman that our party conference is in Blackpool this year.