asked the Minister for Industry and Commerce if, before he recently reimposed bread price control, he was convinced that a price rigging ring existed amongst master bakers and in the bread distribution trade generally, and, if so, whether he proposes to take any steps to have the whole operation of this vitally important industry investigated to ensure the maximum efficiency by which the lowest cost of production of bread can be achieved.
Ceisteanna—Questions. Oral Answers. - Bread Price Control.
The answer to the first part of the question is in the negative.
The de-control of bread prices from 13th May, 1957, as recommended by the Flour and Bread Committee, was intended to induce the operation of free competition between bakers. The prices published by the Bakers' Associations were explained by them as intended for the guidance of their members, very many of whom have never had the experience of trading otherwise than at officially regulated prices. As the statement appeared to me, however, to be likely to delay or prevent the operation of free competition, control of bread prices was reimposed to afford bakers an opportunity of demonstrating that their prices will be arranged by reference to their own costs of production and not by direction or guidance from a central authority within the industry.
The operation of the baking industry has very recently been the subject of an extensive investigation by the Flour and Bread Committee who recommended the de-control of bread prices.