§ Mr. Arthur Lewisasked the Secretary of State for Prices and Consumer Protection in view of the regular increase in the price of bread during the period of wage restraint, whether he will cause an investigation to be made to ascertain whether these price increases were justified and fell within the Government's prices and incomes policy.
§ Mr. MaclennanAll increases in the price of bread since April 1973 have had to be pre-notified to the Price Commission and scrutinised by them to ensure that they are justified under the terms of the Price Code. The Commission has shown itself ready to cut back proposed price increases whenever it thinks it right to do so. In addition, the recent report of the Monopolies and Mergers Commission has indicated that all three of the major groups made substantial losses on bread baking in both 1974 and 1975, although other baking and milling activities were in general very profitable. I understand that for commercial reasons the major bakers are not for the time being implementing the price increase of ½ a loaf which they had notified would take effect from 18th July. In these circumstances I do not consider that a further investigation of bread prices is necessary.