§ Mr. Arthur Lewisasked the Minister of Agriculture, Fisheries and Food, in view of the fact that Ranks, Hovis, McDougall Limited increased their profits in 1968 by £4,633,829 to £17,697,391, why he allowed this and other companies to increase the price of the loaf by 1d.; whether this falls within the Government's policy on prices, wages, dividends and profits; and whether he will make a statement.
38W
§ Mr. HoyThe profits quoted cover the full range of the firm's business which extends into many fields other than bread baking. The recent proposals of the major plant bakers to adjust the price of bread—by increasing the cost of large loaves and reducing that of small loaves —were examined in relation to the costs of production of bread by the firm concerned and in the light of the findings of the examinations of the industry by the National Board for Prices and Incomes, particularly in relation to return on capital invested and the capacity for new investment. The Government is fully satisfied that the price changes are consistent with the policy set out in the White Paper on Productivity, Prices and Incomes in 1968 and 1969 (Cmnd. 3590).