§ 24. Colonel W. THORNEasked the Parliamentary Secretary to the Ministry of Food whether the Consumers' Council 637 was consulted before the price of tea under the new Government scheme was fixed at 2s. 8d. per lb.; whether the actual all-in coat to the Government does not exceed Is. per lb.; if so, whether he will consider that the margin of profit between the actual cost to the Government and the price to the consumer should be reduced by at least 4d. per lb.; and will he say whether the Consumers' Council acquiesced in the liaising of the lowest grade of tea from 2s. 4d. to 2s. 8d. per lb?
§ Mr. CLYNESThe Consumers' Council was consulted about the. price of National Control Tea, but most of the items of cost which makes that price necessary were decided before the first meeting of the Council. The Council favours a price of 2s. 6d. a lb., but as the all in cost of the tea to the Government exceeds Is. a lb., and the duty amounts to another Is., it cannot, under present conditions, be sold at 2s. 6d. a lb. without loss. Lord Rhondda is considering the possibility of buying a cheaper tea after the 31st May, when the present contracts expire, and a further investigation is being made into the gross profits allowed to the trade. The answer to the last part of the hon. Member's question is that, with the introduction of the National Control Tea, the old system of three grades of tea has been abolished. National Control Tea consists of a fair average blend of all teas of the highest and lowest grades, and is sold at one price only. It should be remembered that under the old system the lowest grade tea at 2s. 4d. a lb. was frequently unprocurable.
Sir F. HALLIf after 31st May only the cheaper tea is going to be sold, what is to become of the higher-class tea?
§ Mr. CLYNESMy answer has already announced what has become of the higher-class tea. The only change which will take place, if any, after 31st May is that under the new plan of national control—the tea might be sold at less than 2s. 8d.
§ Mr. SCANLANCould not the Government reduce the price of this tea by remitting to itself the duty of Is. per lb.?
§ Mr. CLYNESThat might be addressed to the Government at large. I am not able at this moment to answer it.