§ 51. Mr. GULLANDasked the Chancellor of the Exchequer whether, when the price of bread was reduced to 9d. per loaf, biscuit manufacturers were granted a licence on which they were entitled to buy flour on a payment to the Government of 18s. per sack, which was regarded as the equivalent of the subsidy on bread; whether he is aware that the Food Controller at the end of March imposed a 395 charge of an additional 18s. per sack on biscuit manufacturers; what is the reason for this new tax; and under what authority has it been levied?
§ The PARLIAMENTARY SECRETARY to the MINISTRY of FOOD (Mr. Clynes)I have been asked to reply. The answer to the first two parts of the question is in the affirmative. The cost of flour to the State has continuously increased, and, as the Cabinet decision to subsidise the price of bread did not extend to biscuits, Lord Rhondda decided to raise the amount of the licence so as to cover the whole margin between the present cost and the fixed selling price of flour.
§ Mr. GULLANDHas the price increased to the extent of 18s. per sack, and will the hon. Gentleman reply to the last part of the question?
§ Mr. CLYNESIt is not intended to make any profit on this transaction so far as the Food Ministry is concerned.
§ Mr. GULLANDWill the hon. Gentleman say under what authority this is done? Does it not require the authority of this House to levy a tax?
§ Mr. CLYNESThis is not strictly in the nature of a tax as we know taxes, and it was done on the authority of the Food Minister.
§ Mr. RENDALLOn what ground does the Food Controller allow biscuits to be manufactured at all? Is it on the ground that they are a necessity or a luxury?
§ Mr. CLYNESThey are still believed by many people in the country to be a necessity.