HC Deb 05 March 1941 vol 369 cc900-2
35. Mr. T. Smith

asked the Parliamentary Secretary to the Ministry of Food whether he is aware that the North-Eastern Wholesale Meat Supply Association, Limited, are insisting that meat and offal allocations to retail butchers shall be paid for on delivery, although admitting that the present method has worked fairly satisfactorily; and whether this alteration is made on the instructions of his Department?

Major Lloyd George

In accordance with the arrangements between Wholesale Meat Supply Associations and the Ministry, the former take the risk of bad debts and guarantee to the Ministry full payment for the supplies they handle. The North-Eastern Association has found it necessary to ask the Butchers' Buying Committee in their area to pay cash on delivery, or, where this is not convenient, to agree to a form of joint control with the Association over the Buying Committee's reserve funds or to provide some other satisfactory form of guarantee.

Mr. Smith

Are we to take it that this alteration is made because there have been a number of bad debts in this area?

Major Lloyd George

I could not say without notice.

Mr. Smith

Why should this wholesale meat association put an extra burden on retail butchers, who have plenty of anxiety already?

Major Lloyd George

The hon. Member will realise that the Association are responsible to the Ministry for all their transactions, and they must safeguard themselves to a certain extent.

Mr. R. J. Taylor

Is it peculiar to that part of the country?

Major Lloyd George

No, it is the same system everywhere.

36. Mr. T. Smith

asked the Parliamentary Secretary to the Ministry of Food whether he is aware that the North-Eastern Wholesale Meat Supply Association, Limited, with a membership of 180, at £10 10s. each had, up to 31st March, 1940, a surplus of £81,961 5s. 1od. after paying all expenses; and whether, in view of the growing feeling in the area that a more economical method of selling meat to retail butchers direct is both possible and desirable he proposes to take any action in the matter?

Major Lloyd George

The surplus shown in the accounts of the North-Eastern Wholesale Meat Supply Association at 31st March, 1940, was £81,961. Up to that date the Association had handled over 45,500 tons of meat. The period of three months from the commencement of control of meat and livestock on the 15th January, 1940, was an experimental period to determine an appropriate basis of remuneration. Under the revised rates which came into operation for subsequent periods the surplus will be materially reduced. The fee of £10 10s. is a nominal entrance fee payable by members, and is in no way related to the distribution of surplus funds, which is based on the recognised pre-war turnover of members.