HC Deb 05 November 1929 vol 231 cc814-8
14 and 7. Mr. WISE

asked the President of the Board of Trade (1) what action he proposes to take in view of the high cost of distribution of milk and of the disregard shown by the traders of the views expressed by himself and by the Food Council;

(2) what action he proposes to take with respect to the existing Food Council?

19. Mr. W. J. BROWN

asked the President of the Board of Trade whether he is yet in a position to announce the intentions of the Government in regard to equipping the Food Council with powers to regulate prices where profiteering in food is discovered, and where publicity does not suffice to stop the profiteering?

33. Mr. GRANVILLE GIBSON

asked the President of the Board of Trade if he has any evidence that the prevailing prices of certain staple foodstuffs are unreasonably high; and, in that event, will he consider taking steps to counteract such charges?

34. Mr. HERBERT GIBSON

asked the President of the Board of Trade whether he is now in a position to state the Government's policy regarding food prices?

Mr. W. GRAHAM

The Government have considered the position of the Food Council, with particular reference to the recent refusal of London milk distributors to conform to the Council's recommendations as to the retail price of milk in August last. I should like at the outset to state that the Government fully recognise the value of the work done by the Food Council, notwithstanding that since its inception in 1925 it has had no statutory basis and has been without power to require the production of information when it was not forthcoming voluntarily. I may add that neither the Food Council nor any other body has power to compel the observance of the Food Council's recommendations.

In the opinion of the Government, this position is highly unsatisfactory, and we intend to submit proposals to alter it early next year.

The Government are of opinion that the interests of the consumer demand that investigation should take place not only in regard to foodstuffs, but also in regard to other necessaries of life. With this object in view, we propose to ask Parliament to set up a Consumers' Council, which shall have power to obtain compulsorily any information that it may require for the purposes of its inquiries.

The Government intend also to submit proposals enabling them to deal with trading interests which refuse to accept the views which the Government may reach after considering the recommendations of the Consumers' Council.

As I have already indicated, it must be some months before the Consumers' Council can be set up. I am therefore asking the Food Council to remain in being for the purpose of carrying out investigations into such food quesaions as may arise meantime.

Sir HERBERT SAMUEL

In regard to legislation, will the Government consider the advisability of applying it, not only to commodities which may be termed necessaries of life, but to commodities which are subject to monopolies or quasi-monopolies, such as petrol and tobacco, or any other monopoly of the kind?

Mr. GRAHAM

That is part of a wider field, but I may tell the right hon. Gentleman that that also has been considered. The House will, however, clearly understand that at the moment I am not forecasting in any way the scope of the legislation. The point mentioned shall not be overlooked.

Mr. WISE

Can the right hon. Gentleman say whether it is the intention of the Government to take powers to control distribution and supply as well as to fix maximum prices?

Mr. GRAHAM

I am afraid that I cannot go beyond the limits of the reply which I have given. I cannot this afternoon in any way indicate the exact scope of the legislation. That is outside the powers which we propose to take as indicated in the answer.

Sir P. CUNLIFFE-LISTER

Are we to understand that the right hon. Gentleman has not made up his mind yet, not only as to whether he proposes to have compulsory investigation, but also as to whether he contemplates the possibility of taking powers to control and manage distribution?

Mr. GRAHAM

The right hon. Gentleman must not understand that. He knows that this is a very difficult problem, but I think we can promise sound legislation upon it, as on other subjects.

Mr. ANEURIN BEVAN

Am I to understand that in the opinion of the right hon. Gentleman the attitude of the late Government was futile in these matters?

Mr. HASLAM

rose—

Mr. SPEAKER

We must pass to the next question.

16. Sir ERNEST SHEPPERSON

asked the President of the Board of Trade if he is aware that on 29th July last English wheat was being sold for 55s. per quarter and the four-pound loaf of bread was 8½ d. in London, whereas on 16th September British wheat had fallen to 41s. 6d. per quarter but the four-pound loaf of bread had risen to 9d.; and will he refer the matter to the Food Council?

Mr. GRAHAM

My information is that the price of English wheat in London on 29th July last was 54s. to 55s. per quarter and on 16th September, 43s. to. 43s. 6d. per quarter. The price of bread in London was 9d. per four pound on both dates, but was reduced on 14th October to 8½ d. The flour from which London bread is made is milled mainly from imported wheats, the proportion of English wheat used being small. I may add that on both the dates referred to by the hon. Member the price of bread in London was within the scale approved by the Food Council.

Sir E. SHEPPERSON

Will the right hon. Gentleman ask the Food Council to consider who is responsible for this very apparent exploitation either of the British farmer or of the consumer?

Mr. GRAHAM

I understand that this subject is practically under continuous review, but I will gladly make any further inquiries on the matter raised by the hon. Member.

39. Mr. ALLEN

asked the President of the Board of Trade whether, in view of the dumping on the home market of German bounty-aided wheat and cereals, he will consult with the Food Council with a view to passing on the benefit to the consumer?

Mr. GRAHAM

The price of bread is dominated by the price of flour, and the relationship between the two is continuously kept under review by the Food Council. In these circumstances, I do not think that any special reference to the Food Council is called for.

Mr. ALLEN

Is it not a fact that it is always the middleman and not the consumer who benefits from free imports?