HC Deb 26 February 1968 vol 759 cc259-61W
Mr. Arthur Lewis

asked the Minister of Agriculture, Fisheries and Food (1) whether he is aware that since devaluation the price of tea has risen by l0d. per pound; and whether he will cause an investigation to be made to ascertain whether this increase to off-set the effects of devaluation is justifiable;

  1. (2) whether he is aware that since devaluation the price of cooking rice has risen by 2d. per pound; and whether he will cause an investigation to be made to ascertain whether this increase to off-set the effects of devaluation is justifiable;
  2. (3) whether he is aware that the price of gingerbread cake has risen by 2d. per pound since devaluation; and what action he proposes to take to restore the price of this commodity to its pre-devaluation level;
  3. (4) whether he is aware that since devaluation a Is. head of celery has risen in price to Is. 4d.; and what action he proposes to take to reduce the price of celery to its pre-devaluation level;
  4. (5) whether he is aware that since devaluation the price of 12 country eggs 260 has risen by 3d.; and what action he has taken, or intends to take, to restore the price of these eggs to their pre-devaluation level.
  5. (6) whether he is aware that since devaluation the price of brussels sprouts has risen by 4d. per pound; and what action he has taken, or intends to take, to restore the price of sprouts to their pre-devaluation level;
  6. (7) whether he is aware that since devaluation the price of shortcake biscuits has risen by 2½d. per pound; and what action he has taken, or intends to take, to restore the price of these biscuits to their pre-devaluation level;
  7. (8) whether he is aware that since devaluation the price of tomatoes has risen by 6d. per pound; and what action he proposes to take to reduce the price of tomatoes to their pre-devaluation level.
  8. (9) whether he is aware that since devaluation the price of English stewing steak has risen by 1s. 8d. per pound and what action he has taken, or intends to take, to reduce the price of stewing steak to its pre-devaluation level;
  9. (10) whether he is aware that since devaluation the price of a Is. lettuce has risen to Is. 9d.; and what action he has taken, or proposes to take, to reduce the price of lettuces to their pre-devaluation figure;
  10. (11) whether he is aware that since devaluation the price of English streaky bacon has risen by 3d. per pound; and what action he has taken, or intends to take, to restore the price of this bacon to its pre-devaluation level.

Mr. Peart

These examples appear to have been taken from a recently-published "shopping basket" list, based upon prices in a butcher's, dairy, greengrocer's and supermarket in South London. They illustrate clearly the dangers of attempting to generalise about food price levels from single quotations. For instance, the price of eggs is now lower than in mid-November, while the prices of several of the other foodstuffs mentioned are in general at the same level as then. There has in the same period been a general increase in beef prices (though this has been, on average, considerably less than that quoted): beef supplies have, of course, been affected by abnormal factors.

Some vegetable prices are also higher now, for seasonal reasons.

Most of the foodstuffs referred to—fruit and vegetables, eggs, meat and bacon—are subject to changes in supply and demand for seasonal and other reasons, and it would be impossible to freeze the price of these foodstuffs at any particular level. My hon. Friend will have noted that the list from which he selected his examples also shows reductions in the prices of potatoes, apples and grapefruit.

For all these commodities whose prices inevitably fluctuate, my Ministry operates its "constant watch" system of price surveillance.

Similarly, the price of individual branded goods in a shop can vary for a period, as cheap offers are made in response to the acute competition in the retail food trade; this need not involve any change in the general price level for those goods. For example, there has been no general rise in the prices of tea and shortcake biscuits since November; where there have been increases in individual shops they probably mark the ending of special offers. In this connection my hon. Friend will have noticed that the list concerned shows reductions, compared with November, in the price of marmalade, baked beans, pineapple chunks and flour, even though, as far as I am aware, there has been no general reduction in these prices.

I can assure my hon. Friend that, of the foodstuffs quoted by him, if a manufacturer wished to increase the price of an important line of tea, cakes or biscuits, either on account of devaluation or otherwise, he would have to give my Ministry advance notice of the proposed increase under the "early warning" system. The justification for the increase would be rigorously examined against the criteria set out in the White Paper "Prices and Incomes Policy after 30th June, 1967" (Cmnd. 3235), and it would be accepted only if in accordance with these criteria.