HC Deb 27 March 1946 vol 421 cc373-4
57. Mr. Collins

asked the Minister of Food if he is aware that the Imported Tomatoes Order, 1945, allows to first-hand salesmen and wholesalers, profits of is. 4d. and 2s. per package, respectively; that many firms will receive both profits amounting to a total of 3s. 4d., for a function which, prior to the war, they willingly performed for 6d.; and if he will explain the reason for these charges.

Sir B. Smith

I am aware that it is possible for some firms to receive both margins, but instances in which this can occur are exceptional and would be permissible only in those cases where the firm performs both functions. I have no evidence that before the war both services would have been performed for as low a gross charge as 6d. In any case, all expenses have increased and the turnover is much lower. I have fixed the margins experimentally for this trade, which is only just being revived, and I shall review them in the light of experience.

Mr. Collins

Can my right hon. Friend clarify the position whereby an importer can sell direct to a wholesaler under the Order and say what margin of profit is allowed to the wholesaler?

Sir B. Smith

I should like to have notice of that Question.

Mr. Ronald Chamberlain

May I ask the Minister whether, in addition to the matters raised on that point, he is aware that wholesalers are offering prices for Canary tomatoes far in excess of the price he has agreed with the trade, to the further detriment of the public?

Sir B. Smith

I continually hear such statements, but, surely, whilst these prices may be asked, the public, knowing the right prices, should not pay them. I cannot possibly put a policeman or an enforcement officer at the elbow of every salesman in the country.

Mr. Cobb

As a reduction in distribution costs is a vital national necessity, will the Minister keep this matter under careful and continual review?

Sir B. Smith

I said that in the last paragraph of my answer.

58. Mr. Collins

asked the Minister of Food if he will state the reason for the change in the definition of First-hand Sale, from that given in the Imported Tomatoes Order, 1941 (S.R. & O., 489), to that in the Order of 1945 (S.R. & O., 1325).

Sir B. Smith

The 1941 Imported Tomato Order was made before my predecessor decided that he should define and regulate the channels of distribution of all commodities by the introduction of the Restriction on Dealings Order. In the 1945 Order the definition of firsthand sale was made to conform with the principles laid down in the Restriction on Dealings Order.

Mr. Collins

Is my right hon. Friend aware that the definition in the 1941 Order was in accordance with trade practice and that the definition in the 1945 Order is not —

Sir B. Smith

I should not be at all surprised at that.

Mr. Collins

—and that it has the effect of creating a new class of middleman and costing the consumer 2d. a pound more, and will he look into it?

Sir B. Smith

I am not aware that it costs the consumer 2d. a pound more. The price I have fixed for these tomatoes conforms with all previous prices.