asked the Minister for Industry, Trade, Commerce and Tourism if, in view of the increased levels of poverty in the country and the huge increase in the price of bread since August 1984, he will consider reintroducing price controls for bread.
34.
Written Answers. - Price of Bread.
17.
asked the Minister for Industry, Trade, Commerce and Tourism if he is aware of the considerable hardship being endured by families due to the continuous increases in the price of bread; if he will consider reintroducing price control on bread prices; and if he will make a statement on the matter.
I propose to take Questions Nos. 17 and 34 together. I understand that the more recent increases in the price of bread were due in the main to increased costs which would have been allowable if price control criteria applied. In August 1984 the National Prices Commission, at my request, examined the price increases implemented at that time and found that price increases since decontrol in August 1982 had been less than those justified by increased costs. A major factor in this was the increased competition evident at all levels of the trade with low priced bread being widely available at retail level. This level of competition is still evident and a survey by the Commission, undertaken since the latest increase, shows that in most major supermarkets and multiples own brand bread is available at between 39p and 47p per standard loaf while branded bread is being retailed between 55p and 63p. In these circumstances and as the price increases in question seem to be justified on the basis of cost increases I do not propose to reintroduce price control at this stage. However bread prices at retail level will continue to be monitored by my Department.