§ 47. Captain WRIGHTasked the Prime Minsiter, in view of the fact that the United Dairies Combine controls 80 per cent. of the wholesale milk supply to London and 70 per cent. of the retail supply, and that no advantage of an improved grade of milk or cheapness has been made a condition of approval to this monopoly by any Government Department concerned, if he will appoint a. committee, representative of consumers, producers, the Agricultural Organisation Society, the Ministry of Food, and the Board of Agriculture, to inquire into the whole matter and report whether it is in the public interest that such a monopoly should be permitted; and, if so, under what conditions of standard and prices of the essential food controlled?
§ Mr. CLYNESI have been asked to reply. The Joint Committee of the Ministry of Food and the Board of Agriculture on the production and distribution of milk have already given considerable attention to this matter, and, at Lord Rhondda's request, they are now appointing a sub-committee, on which outside representatives of consumers and producers will be added, for the purpose of settling the immediate steps necessary for the control of the collection, utilisation, and distribution of milk sold wholesale.
§ Captain WRIGHTMay I ask the Leader of the House whether he will now take steps to prevent any further firms being included in the combine until the Committee have reported?
§ The CHANCELLOR of the EXCHEQUER (Mr. Bonar Law)This is obviously a question dealing directly with the food supply, and more suitable for the Food Controller. I have not looked into it myself, but I will do so.
§ Captain WRIGHTMay I ask the same question of the Parliamentary Secretary to the Ministry of Food?
§ Mr. CLYNESI think my hon. Friend may be assured that immediate action will be taken, as this answer indicates, and that the matter may be safely left in the hands of the committee now being appointed.
§ 51. Captain WRIGHTasked the Parliamentary Secretary to the Ministry of Food if he will state in thousands of gallons what is the present production of milk in England, Scotland, and Wales; what was the total production for the six months ending 31st December, 1917; what was the total production for the six months ending 30th June, 1917; the amount and percentage of such total production which is now being, and was during the above periods, converted into condensed milk, milk powder, chocolate, or otherwise preserved apart from conversion into cheese and butter; the amount and percentage of the total production which is now, and was during the above periods, controlled, converted as above by the United Dairies. Limited, and Nestlé's and Anglo-Swiss Condensed Milk Company, respectively; and the amount and the percentage of the total production which is now, and was during the above periods, converted into 809 cheese and butter, and the percentage of this so converted by the United Dairies, Limited?
§ Mr. CLYNESI regret that, owing to the absence of precise statistics, it is impossible to give all the information asked for in this question, but, from such records as are available, I have caused a statement to be prepared, and am sending this to the hon. Member.
§ The following is the statement referred to:—
§ The only available statistics with regard to the first part of the question are those obtained by means of the various censuses taken by the Ministry of Food and the Board of Agriculture, but, though the number of cows can be given, it is not possible to give exact figures as to milk production, since the average yield per cow is unknown, and there are no figures to show the proportion of animals calving in any season of the year. The census figures are as follows:
| 1. CENSUS of 2nd December, 1917 (joint by Ministry of Food and Board of Agriculture) showed Dairy Cattle only— | |||
| — | Cows and heifers in milk. | Cows and heifers in calf. | Other breeding and store cattle 2 years and over. |
| England and Wales | 1,553,948 | 1,028,184 | 370,914 |
| Scotland | 239,317 | 210,794 | 47,373 |
| Total | 1,793,265 | 1,238,978 | 418,287 |
§ It was estimated on 2nd December, 1917, by producers that they would sell (not produce) during three following months 125,801,646 imperial gallons.
| 2. CENSUS by Board of Agriculture 4th June, 1917— | |||
| — | Cow and heifers in milk. | Cows in calf but dry. | Heifers in calf with first calf. |
| England and Wales | 1,831,443 | 271,537 | 361,814 |
| Scotland | 347.000 | 45,000 | 50,000 |
| Total | 2,178,443 | 316,537 | 411,814 |
| Grand total | 2,906,794 |
| 3. CENSUS taken at request of War Office through Police, 21st April, 1917— | |||
| — | Cows and heifers in milk. | Cows in calf but dry. | Heifers in calf with first calf. |
| England and Wales | 1,735,328 | 365,700 | 421,508 |
| Scotland | 314,000 | 125,000 | |
| Total | 2,049,328 | 912,208 | |
| Grand total | 2,961,536 |
§ On 1st March, 1918, the product of not more than 57,364 cows was being used for the manufacture of condensed milk. Figures as to the other periods mentioned are not available. The amount of milk converted into dried milk during the six months ending the 31st December, 1917, was not less than 4,713,118 gallons, while, during the six months ending the 30th January, 1917, it was not less than 2,648,961 gallons. No milk is now being used in the manufacture of chocolate. Figures as to the amount of milk preserved apart from the production of cheese and butter are not available. Information as to the percentage of the total production of milk controlled by the United Dairies Company, Ltd., has not yet been obtained. The amount of milk used by Nestlé's in the manufacture of condensed milk in the six months ending 30th June, 1917, was 11,569,081 gallons, and in the six months ending 31st December, 1917, 13,705,369 gallons. The amount used during the six months ending 30th June, 1918, will probably not exceed the first of these figures.
§ Captain WRIGHTWill this information be before the Committee?
§ Mr. CLYNESCertainly.
§ 52 and 53. Captain WRIGHTasked the Parliamentary Secretary to the Ministry of Food (1) if during the month of April, 1918, the price of milk to the producer will be reduced from 1s. 9d. to 1s. 8d., whiile the price to the wholesaler remains the same, so that the consumer will obtain no benefit by way of a reduced price; (2) why the margin has been increased from 3d. to 4½d. for large wholesalers prepared to collect from the station and deliver to the retailers' premises, while ½d. only is allowed to wholesalers who, supplying churns, standing the risk of bad debts, doing all the booking, regulating the 811 quantities, and supplying stationery to the farmers, put the milk direct from the producers to the retailers; and if he is aware that the above increase is not unduly favourable to the United Dairies combine of wholesalers and retailers and detrimental to their smaller competitors in the wholesale trade?
§ Mr. CLYNESThe Food Controller has fixed the price of milk to the producer during April at 1s. 8d. per gallon, which is the average of the prices previously fixed for the six winter months. After a careful examination of the best figures available as to costings, it has been thought advisable to increase the maximum margin allowed to wholesale dealers for milk delivered by them to the retailer's premises, the dealer paying the railway charges, from 3¾d. to 4½d. per gallon. A margin of ½d. per gallon is allowed to wholesalers upon whose instructions producers send their milk direct to retailers, since this figure is considered to be adequate for the services rendered. I cannot agree that these rates are unduly favourable to any particular company; they are maximum rates, subject to variation by local food control committees, upon whose action will depend the actual price paid by the consumer for milk in April.
§ Captain WRIGHTIs it not the fact that these margins for wholesalers and retailers were fixed on the idea that the services would be rendered by different firms, and now that so many firms are in the combine the margins are unduly favourable to them?
§ Mr. CLYNESMy reply indicates that it is not considered that these margins arc unduly favourable to any one company.