HC Deb 06 July 1939 vol 349 c1647

Maximum Limit of Normal Minimum Price or Charge.

(1)The maximum limit, in relation to any determination under a price scheme, of a normal minimum price or charge in connection with the sale of any product or the subjection of any product to any process, shall be determined in accordance with the following provisions of this Part of this Schedule.

(2)The Cotton Industry Board shall select from among the undertakings engaged in the section of the industry to which the scheme relates, in manufacturing the relevant product or subjecting that product to the relevant process, a group of undertakings which appear to that board to be the most efficient of all the undertakings so engaged.

(3)In relation to each of the undertakings so selected, the Cotton Industry Board shall ascertain the sum equal to the aggregate of the following amounts, that is to say—

  1. (a) the cost to the person carrying on that undertaking of manufacturing the relevant quantity of the relevant product or subjecting the relevant quantity of that product to the relevant process;
  2. (b)such amount as may, in relation to plant of the type used for the purposes of that undertaking in manufacturing the relevant product or subjecting it to the relevant process, be specified in the scheme as the amount allowable for depreciation of plant by reason of the manufacture of the relevant quantity of the relevant product or the subjection of the relevant quantity of that product to the relevant process; and
  3. (c)such amount as may be specified in the scheme as the amount allowable for profit in respect of the manufacture of the relevant quantity of the relevant product or the subjection of the relevant quantity of that product to the relevant process;
and the average of the sums ascertained under this paragraph shall be the maximum limit.

4. The amount computed in respect of cost in relation to any undertaking under sub-paragraph (a) of the last preceding paragraph shall be computed—

  1. (a)by reference to the operation of the undertaking over such past period as the Cotton Industry Board think proper; and
  2. (b)on the assumption that the under taking was carried on on every day of the week except holidays, for the number of hours customary in the section of the industry to which the scheme relates.

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