asked the Minister for Industry, Commerce and Tourism if he has satisfied himself that the recent price increase of five pence in the loaf of bread has been sufficient to meet the industry's requirements and if any further price increase will be approved in this industry during 1980.
Written Answers. - Bread Price Increase.
442.
The increase of five pence applied only to batch bread (800g loaf); the increase in the price of pan bread (800g loaf), which is much more widely eaten, was four pence.
The retail price of bread is fixed by Maximum Prices Order, which is amended from time to time to take account of allowable cost increases incurred by the bakers. The bakers apply for price increases on the basis of a price contract which is renewed at six monthly intervals. The recent price increases are less than the amounts sought by the bakers. They are, however, based on the allowable costs incurred by the bakers in the period to December 1979 together with anticipated costs in respect of the period to end-June 1980.
The price contract will be reviewed prior to 1 July 1980. Whether or not further increases in the price of bread will be approved during 1980 will depend on developments in the meantime.