§ Mr. Shepherdasked the Minister of Agriculture, Fisheries and Food if he will set out in the Official Report a table showing the standard loaf bakeries existing on 7th April 1978 indicating the owning company, the location and the numbers employed in each plant and the same information covering the bakeries which will remain after the reorganisation.
§ Mr. John SilkinI regret that this information is not readily available.
§ Mr. Shepherdasked the Minister of Agriculture. Fisheries and Food if he is satisfied with the situation in the bread-making industry and the profit margins of standard loaf bread bakers in the light of the Spillers disclosure of losses of £28 million; what representations he received from Spillers Ltd. prior to 7th April 1978 concerning its difficulties; and if he will make a statement.
§ Mr. John SilkinThe poor levels of profitability in bread baking have been well known for some time and were highlighted in last year's report by the Monopolies and Mergers Commission. In particular it was know that Spillers was 519W making substantial losses on bread. It informed the Government of its current position during the discussions immediately prior to the announcement on 7th April. Following the proposed reorganisation, supply and demand should be more closely balanced and the remaining bakeries should be operating more economically and profitably with lower unit costs.
§ Mr. Shepherdasked the Minister of Agriculture, Fisheries and Food what representations he has received from trade and industry associations with interests in the bread making industry.
§ Mr. John SilkinIn recent months I have received representations from the Federation of Bakers about the structural problems of the industry but since I wrote to the federation on 30th January I have received no firm proposals. My Department, together with the Department of Prices and Consumer Protection, has taken part in discussions with representatives of both sides of the industry.
§ Mr. Shepherdasked the Minister of Agriculture, Fisheries and Food what consultation he has had with the British and Irish Millers Association concerning the profitability of bread making prior to the announcement of the bakeries closures by Spillers Ltd.
§ Mr. John SilkinNone.
§ Mr. Shepherdasked the Minister of Agriculture, Fisheries and Food if he is satisfied that the reorganisation of the baking industry will lead to a balance between supply and demand; and, if not, what he estimates will be the residual overcapacity.
§ Mr. John SilkinIt is not possible to make precise comparisons of production and capacity in the baking industry. The reorganisation should lead to a closer balance between supply and demand.