§ Mr. Arthur Lewisasked the Minister of Agriculture, Fisheries and Food if he will make a statement on his joint discussions with food manufacturers and others on recent price increases in a wide range of food products; and to what extent these talks have ensured that the Government's price standstill policy will apply so far as these food products are concerned.
§ Mr. PeartDuring the past week I have met the leading representatives of the main sections of the food and drink industry, namely, manufactured foods, milling and baking, brewing, wines and spirits, fresh meat and poultry, meat products, fresh fruit and vegetables, fish, eggs and dairy products, tea and coffee, and the wholesalers and retailers of groceries and provisions. I explained to them the restraint which I expected them to exercise on food and drink prices in accordance with the White Paper on the Prices350W and Incomes Standstill, and I am glad to say that the representatives of every section of the industry gave me assurances that they would co-operate fully with the Government in carrying out the policy in the White Paper.
It was also agreed that in order to ensure that close touch is maintained between different sections of the industry and my Department during the next twelve months, small informal liaison committees should be set up. These committees will be particularly valuable in the case of those commodities listed in Part B of the Appendix to Cmnd. 2808, whose prices must inevitably go up and down in accordance with short-term variations in supply and demand on the commodity markets. Unless such price changes take place, shortages or surpluses would develop which would be far more harmful to consumers. This is the reason why, under paragraph 10 of the White Paper, such commodities are not subject to a price standstill but instead the prices being charged will be kept under constant watch by my Department. The liaison committees will enable my Department to be kept fully informed and to see, in co-operation with the industry, that no unnecessary price increases occur.
In accordance with paragraph 8 of the White Paper, my Department will be reviewing with the different sections of the food and drink industry the existing early warning arrangements which, together with those for constant watch, cover the whole range of prices. I hope, therefore, that we can make good progress with these discussions, so that this strengthened early warning system can be applied to food and drink prices, thus making it possible to replace the arrangements under paragraph 9. I am glad to say that the representatives of many of the leading food and drink manufacturers and processors have given me their assurance that, unless exceptional circumstances arise, they will not raise their food and drink prices above existing levels until at least the end of the year.