§ Mr. Giles Shawasked the Secretary of State for Prices and Consumer Protection why he only gave the baking industry two days' notice of his decision to change the Government's policy on the pricing of bread.
§ Mr. MaclennanSince it was established my Department has had close links with the baking industry and in recent weeks there have been several meetings with its representatives to discuss the future of bread price control. We have now issued a consultative document about proposed changes in the Bread Prices Order and have invited comments on them.
§ Mr. Giles Shawasked the Secretary of State for Prices and Consumer Protection whether he will confirm that the baking industry will be allowed to recover all the profit margin lost by his decision to refuse the price increase on bread; and when he will permit the industry to implement that recovery.
954Wbecause of differences in the quality, grading and presentation of products. The table below sets out average unit values of those major commodities which, in September 1976, were imported into the United Kingdom from both EEC and non-EEC countries.
§ Mr. MaclennanBaking companies will continue to be subject to the usual rules of the Price Code.
§ Mr. Giles Shawasked the Secretary of State for Prices and Consumer Protection what will be the cost to public expenditure of his decision to continue the bread subsidy at its present level; and what effect this decision will have on the Government's timetable to phase out food subsidies.
§ Mr. MaclennanMy right hon. Friend's decision to defer the cut in the bread subsidy which he had planned for the end of this month will not affect total food subsidy expenditure; this will be contained within the existing financial provision for 1976–77. Similarly, my right hon. Friend's decision will not affect the Government's timetable for phasing out the food subsidy programme as a whole.
§ Mr. Giles Shawasked the Secretary of State for Prices and Consumer Protection why he has decided to peg the price of bread until the year's end; and if there 955W are any other products which he propses to treat similarly.
§ Mr. HattersleyIn order to stabilise the price of standard bread pending the introduction of a new form of bread price control, I decided not to raise the maximum retail prices of 14 oz and 28 oz standard loaves, although increases in respect of premium loaves will be accepted in the normal way provided they are justified under the Price Code.
Decisions on other products will be taken on the merits of each case.
§ Mr. Giles Shawasked the Secretary of State for Prices and Consumer Protection whether his decision to reject the baking industry's case for an increase in bread prices was taken in the light of the Government's policy to encourage a profitable development of the private sector.
§ Mr. HattersleyI assume that the hon. Member refers to the notification of price increases which the major baking companies have submitted to the Price Commission. My decision applies only for maximum retail prices. Bakers will be able, though not obliged, to increase the wholesale price they charge to retailers. Bakers who are also retailers will, of course, be subject to the maximum price order in relation to their direct sales of standard bread. I am not requiring them to forgo price increases on any sales of non-standard bread or on any wholesale sales of standard bread.