§ Mr. Neubertasked the Secretary of State for Prices and Consumer Protection what effect he estimates the withdrawal of Spillers from breadmaking will have on bread prices; to what extent Government price control may have contributed to unprofitability in the baking industry; and what action he proposes to take in relation to the monopoly implications of the new situation.
§ Mr. HattersleyRank Hovis McDougall and Associated British Foods have stated that they do not expect to pre-notify a further price increase before late 1978, and I do not expect Spillers' withdrawal from breadmaking to have an immediate effect on prices. The industry has been affected by overcapacity and falling demand and these, rather than price controls, have led to unprofitable trading. I hope that the greater utilisation of plant that will now be possible will hold down costs and prices. I also hope that strong competition will continue within the industry, so that it is not necessary to exercise the powers available to make a monopoly reference. The Director General of Fair Trading will continue to keep competition in the industry under review.