§ Mr. Alfred Morrisasked the Minister of Agriculture, Fisheries and Food what proposals he has received for changes in 89W bread prices; and whether he will make a statement.
§ Mr. Cledwyn HughesThe major plant bakers have notified my Department under the early warning arrangements of proposed changes in the price of bread. The principal changes—which the Government has agreed should apply from 3rd February—will be an increase of 1d. on the large (1¾ lb.) standard loaf and a reduction of ½d. on the small (14 oz.) standard loaf. Related adjustments will also be made in the prices of non-standard loaves produced by these firms, with the exception of proprietary bread. The price of proprietary breads is still under consideration and for the time being will remain unchanged. The increased costs which the bakers have advanced in justification of their proposals, and their capacity to absorb them, have been carefully examined against the criteria for price increases set out in the White Paper onProductivity, Prices and Incomes Policy in 1968 and 1969 (Cmnd. 3590) and the Government accepted that the adjustments proposed are consistent with the policy.
In adjusting these prices account has been taken of the need to eliminate the halfpenny in current prices in anticipation of the demonetisation of that coin on 1st August. Slightly different adjustments from those mentioned above may therefore be necessary in Northern Ireland, and in those areas remote from the plant bakeries, where bread prices have traditionally been marginally different from the price of the standard loaf in England and Wales and of the most popular loaf (the batch loaf) in Scotland. These adjustments, too, have been accepted by the Government.
The firms concerned have given the Government satisfactory assurances about the progress being made towards modernisation in the industry with the objective of achieving greater efficiency in the longer term in bread production, having regard to the special increase in bread prices granted for this purpose at the time of the last price adjustment.
The prices charged by smaller independent bakers vary over a wide range according to size, quality, type and individual circumstances. These bakers, too, have been facing increased costs and (like plant bakers) have to take account of 90W the need to eliminate the ½d. from their price structure. My Department has, however, received assurances from their representatives that any price adjustments they have to make will be fully consistent with the Government's prices policy.