§ Mr. Arthur Lewisasked the Minister of Agriculture, Fisheries and Food whether he has received the special report on food prices prepared by the Food Manufacturers Federation Incorporated on food prices generally and the effects of value added tax, sent to him by the hon. Member for West Ham, North, on 1st June, 1972; and whether he will make a statement in connection with same.
§ Mr. PriorThe report refers to a number of issues which have been the subject of consultation between the Federation and my Department, or have been raised in recent correspondence with me and my right hon. Friend the Chancellor of the Exchequer.
The report confirms the significance of wage inflation, and of higher prices for imported raw materials as causes of higher food prices, and welcomes action taken by the Government, particularly on sugar, to help stabilise prices. The 338W from the hon. Member on 23rd May I inadvertenly said that EEC Regulation 2839/71 extended the period in which certain Class III standards would be available to 31st December, 1974. The correct date is 30th June, 1974. However, as I stated in my previous reply, the Regulation will be superseded on our accession to the EEC by an agreement extending the period to 31st December, 1977.—[Vol. 837, c. 337.]