§ Mr. Arthur Lewisasked the Minister of Agriculture, Fisheries and Food whether he will make a statement on his recent discussions with representatives of the food and drink industry concerning methods of keeping prices down; and whether in these discussions account was taken of the recent rise in price of 141 food items and the 5d. in the £ sterling rise in food prices since the recently announced devaluation.
§ Mr. Peart:During the past week I have met representatives of all the principal trade associations in the food and drink industries in order to discuss the Government's policy on prices after devaluation.
I made it clear that the Government recognised that inevitably there would be price increases as a result of devaluation, and so increased retail prices. I also made clear, however, that it was essential that such increases should be no more than were strictly necessary.
I emphasised the importance the Government attached to the price surveillance arrangements which had been developed in co-operation with the industry. For price increases sought for reasons other than devaluation, the criteria set out in the White Paper on Prices and Incomes Policy after 30th June, 1967 (Cmnd. 3235) would stand. Such increases would continue to be rigorously examined to ensure that increased costs could not be absorbed.
The representatives of the trade associations emphasised that they were faced with extra costs, many of them beyond their control. They pointed out that competition would have a strong influence on prices. They agreed to convey my views to their members and assured me of their continued co-operation.
374WAs regards the second part of the Question, the Government have always recognised that it is impossible to freeze the price of all foods. It is of no particular significance if, out of the many thousands of lines of foodstuffs, 141 rise.
I have no evidence of a rise of 5d. in the £ in food prices since devaluation. But, apart from devaluation, other factors, such as the disruption caused by the foot-and-mouth epidemic, and extra costs due to the dock strike, are at present affecting some food prices.