§ 14. Sir John Mellorasked the President of the Board of Trade whether, in view of the misunderstandings of the maximum gross percentage profits which wholesalers and retailers are permitted to retain under the Utility Clothing Scheme, he will re-state the position?
§ Sir A. DuncanFor a wholesaler the margin allowed on utility clothing must not exceed 20 per cent. of the price at which he buys from the manufacturer. For a retailer it must not exceed 33⅓ per 158 cent. of the price, including Purchase Tax, at which he buys from the wholesaler or manufacturer. In either case the price thus calculated must not exceed the selling price laid down for the goods in question by the relevant Order.
§ Mr. Neil MacleanIs the percentage fixed on the selling price or on the price which is paid to the manufacturer?
§ Sir A. DuncanIt is on the price which is paid to the manufacturer.
§ Sir J. MellorWill my right hon. Friend make it clear that in no circumstances can the retailer's profit include a percentage on the Purchase Tax?
§ Sir A. DuncanThat is the rule in the ordinary way where the prices were ruling before the Purchase Tax was imposed, but in this particular case the Central Prices Committee found it was a matter of great convenience that the Purchase Tax should be included in the cost before fixing the percentage. The percentage is correspondingly less than it would have been had the Purchase Tax been left out.