HC Deb 17 May 1973 vol 856 cc351-3W
4. Mr. Alexander Wilson

asked the Minister of Agriculture, Fisheries and Food what is the increase in food prices since June 1970 to the nearest available date and if he will make a statement.

26. Mr. Carter

asked the Minister of Agriculture, Fisheries and Food by how much the cost of food has risen since 18th June 1970.

Mr. Godber

I would refer the hon. Gentleman to the reply given on 10th May to the hon. Member for Bolsover (Mr. Skinner) and the hon. Member for Rugby (Mr. William Price).—[Vol. 856, c. 149.]

12. Mr. Simon Mahon

asked the Minister of Agriculture, Fisheries and Food whether he will make a statement on bread prices.

34. Mr. Arthur Davidson

asked the Minister of Agriculture, Fisheries and Food by how much the price of a standard loaf of bread has risen since June 1970.

Mrs. Fenner

According to the General Index of Retail Prices compiled by the Department of Employment, the average price of a white 28-oz. unwrapped loaf was 8.8p in June 1970 and 10.4p in March 1973. The average price of the equivalent wrapped and sliced loaf was 9p in June 1970 and 10.4p in March 1973. Any increase in bread prices during stage 2 of the counter-inflation programme would need to be in accordance with the Price and Pay Code.

15. Mr. Dempsey

asked the Minister of Agriculture, Fisheries and Food what food commodities will be reduced in retail price in the United Kingdom as a result of the agreements with the EEC announced by him on 1st May.

Mr. Godber

On butter, the arrangements should lead to price reductions initially and the net effect should be to prevent any increase in the average retail price this year. Consumers will also benefit from the decision to reduce by 10 per cent. for each commodity—except beef—the increase in price which would otherwise have resulted from our undertakings to the Community. There was also agreement reached to continue the suspension of the import duties on beef for a further period. Taken as a whole, the agreement on Community farm prices is expected to have a minimal effect on retail food prices in 1973–74.

17. Mr. McBride

asked the Minister of Agriculture, Fisheries and Food what steps he proposes to take to reduce the retail price of beef to the United Kingdom consumer.

Mrs. Fenner

Measures have already been taken to encourage greater home production and imports which will help to keep down the retail price of beef.

27. Mr. James Hamilton

asked the Minister of Agriculture, Fisheries and Food by what percentage food prices have risen since the introduction of the Counter-Inflation Act.

Mrs. Fenner

I regret that this information is not yet available.

28. Mr. Sydney Chapman

asked the Minister of Agriculture, Fisheries and Food if he has yet quantified more precisely his estimate of an increase in the cost of food index of less than 0.25 per cent. as a result of the agreed common agricultural policy prices for 1973–74, and his latest estimate of an increase of 1.5 per cent., as compared with the original estimate of 2.5 per cent. in the first year of adaptation under the terms of the Treaty of Accession.

Mr. Godber

The estimate of an average increase in retail food prices of about 2½ per cent. per annum over a period of about six years was made in July 1971, but was revised to about 2 per cent. in April 1972 following changes in the relative levels of world and EEC prices. The latest estimate is that the average annual increase will still be about 2 per cent., but that the increase in the first year will be only 1½ per cent. The effect of the agreement on EEC prices for 1973–74, which is now estimated at something less than 0.2 per cent., has been fully taken into account in these assessments.

Sir G. Nabarro

asked the Minister of Agriculture, Fisheries and Food what increase in retail food prices has occurred between 1st July 1970 and 30th April 1973; and to what extent food prices have been stabilised following the prices standstill policies of Her Majesty's Government, compared with the 33-months period since July 1970.

Mr. Godber

As to the first part of the Question, I would refer my hon. Friend to the reply given on 10th May to the hon. Member for Bolsover (Mr. Skinner) and the hon. Member for Rugby (Mr. William Price). —[Vol. 856, c. 149.]

As to the second part, the prices standstill had its main impact on the sub-group of the food index which covers food mainly manufactured in the United Kingdom, for which the increase between 14th November 1972 and 20th March 1973 was equivalent to an annual rate of 4.2 per cent. Fresh and imported food prices were, of course, not included in the standstill arrangements.