§ 59. Mr. A. Edwardsasked the Chancellor of the Exchequer whether he has given consideration to the possibility of providing a Government subsidy, as at present used for pegging food prices, for all increased costs due to war in order to spread the charges equitably throughout the entire community and preventing repeated rises in the cost of commodities?
§ Sir J. SimonNo, Sir. Such a course would be open to many objections. The policy which I recently announced in relation to essential food prices affects a number of staple commodities of importance in the cost of living of wage earners. These commodities are either rationed or the demand for them is inelastic—such as bread. But to extend the policy, as the hon. Member proposes, would, while putting an incalculable burden on the Exchequer, stimulate the consumption of all manner of commodities and would increase the demands on our shipping and exchange resources.
§ Mr. ShinwellIs it not a natural corollary of a proposal of this kind that meat should be rationed?
§ Sir J. SimonIt is indicated in my Answer—indeed it is obvious—that if you take steps which tend to make an article cheaper you must either ration the article or it must be one the demand for which is comparatively inelastic.