54. Lieut.-Colonel GUINNESSasked the Parliamentary Secretary to the Ministry of Agriculture whether London millers are allowed to recover from the public the cost of carriage on country wheat which they bring to London, while if the country millers make the wheat into flour and send it to London they have to pay carriage; whether farmers are for this reason unable to obtain offals from country mills; and whether, with a view to the encouraging of pig-keeping, he will either cancel the payment of carriage in the one case or allow it in both?
§ Mr. PARKER (Lord of the Treasury)I have been asked to reply. All mills manufacturing flour in the United Kingdom are controlled by the State. London millers are allowed to charge in their accounts the cost of carriage of homegrown wheat to their mills, and country millers who make home-grown wheat into flour, and who, prior to control sold such flour to London buyers, are permitted to charge carriage on the flour up to a maximum of 16s. per ton. In less than 5 per cent. of the cases where country millers avail themselves of this permission does the actual cost of carriage exceed this figure. It would not appear, therefore, that there is any appreciable connection between carriage charges on wheat or flour and the output of offals from country mills, and the last part of the question does not arise.
§ 57. Mr. CAUTLEYasked the Parliamentary Secretary to the Ministry of Agriculture by what method is the price of 95s. a quarter for wheat to be secured to the grower in case the market price of imported wheat falls below 95s.?
The PARLIAMENTARY SECRETARY to the MINISTRY OF AGRICULTURE (Sir Arthur Boscawen)My hon. and learned Friend's question seems to be based on a misapprehension. The announcement made by the Prime Minister on 12th March did not promise a fixed price of 95s. a quarter for home grown wheat, but an equivalent price to that paid for imported wheat of similar or comparable quality subject to a maximum of 95s. If, therefore, the c.i.f. cost of imported wheat falls below 95s., the price paid for home-grown wheat will be reduced accordingly.
§ 61. Captain R. TERRELLasked the Parliamentary Secretary to the Ministry of Agriculture if he will define the term" of similar or comparable quality, used in the Government's recent statement on 1920 wheat prices and whether any assurance will exist that fair average quality English wheat will secure the maximum price of 95s. if the c.i.f. price of imported wheat is not under that figure?
Sir A. BOSCAWENI propose to take the opportunity afforded by my hon. and gallant Friend's question to state precisely the method by which the price to be paid for home-grown wheat harvested in 1920 will be ascertained.
The price to be paid for British wheat of sound milling quality will be announced each month, and will be the average of the c.i.f. cost of all milling wheat imported during the two preceding months, and of the actual and anticipated arrivals in the United Kingdom during the current month, subject to an adjustment in respect of the lower percentage of flour of equal water content obtainable from home-grown wheat as compared with imported wheat, and subject also to a maximum of 95s. a quarter.
Home-grown wheat of sound milling quality will be defined as wheat of fair average quality for the season fit for milling into flour for human consumption.
In reply to the specific inquiries in the question, the term "similar or comparable quality" refers to the percentage of flour obtainable, and the prices will be adjusted accordingly. Consequently, in view of the fact that British wheat yields on the average a somewhat lower percentage of flour of equal water content than imported wheat, the maximum price- 35 of 95s. will be payable for British wheat so long as the average price of imported wheat is in excess of that figure.