HC Deb 11 August 1947 vol 441 cc1905-7
12. Mr. Murray

asked the Minister of Food if he is aware that lorry loads of perishable foods such as plums, apples and cauliflowers are being refused in large city markets with the view of keeping up prices; that producers are being compelled to carry tons of these goods back to their warehouses unsold; and if he will take action so that the public will have the opportunity to purchase these foods at open market prices and avoid this waste of transport, labour and produce.

Mr. Strachey

Certainly fruit and vegetables are now in heavy supply, and the only way in which these supplies can be cleared is by rapid and substantial reductions in retail prices. Retail prices have, of course, fallen greatly since the very high levels of last spring. For instance, cauliflowers were selling at is. 3¾d. a lb. in the middle of April, and are now selling at 6d. to 6½d. a lb. which is below last year's controlled price. Similarly cabbage was is. 1¼d. a lb., and is now 4½d. a lb. on average. But, as I recently told a conference of the wholesale and retail trade, even these reductions in price are not enough if they do not suffice to clear the market, and I strongly advised them to reduce prices still further. Moreover, in order to encourage them to do so, I have, as already announced, decided to allow anyone who likes to enter the greengrocery retail trade without need of a licence as from 1st September next, and to the greatest extent practicable to free entry into the wholesale trade also.

Mr. Murray

Is my right hon. Friend aware that I am very much obliged for the splendid reply he has given to this Question? Is there any possible way to help a producer when he takes a load to Manchester or Sheffield and cannot sell that load on the spot but has to take it back to Cambridgeshire or some other place?

Mr. Strachey

My right hon. Friend raises an important problem, but I think the best way in which we can deal with it quickly today is to open the trade both on the wholesale, and above all, on the retail side to the maximum number of competitors.

Mr. Lennox-Boyd

May I ask whether the confession that free competition reduces prices should not be followed by other Departments?

Mr. Strachey

It is not a confession. [HON. MEMBERS: "It is a fact."] It is an announcement, which has already been made, that the wartime system—not set up by this Government—by which these trades had to have ring fences put round them so that nobody could get into them, is not a desirable thing, and, in the long run, leads to unpleasant private enterprise monopolies.

Mrs. Middleton

Does that mean that by opening the retail trade, when there are allocations these retailers will get the same facilities in regard to imported fruit as he is going to grant in regard to home grown fruit?

Mr. Strachey

Yes, Sir.

Mr. Bossom

Is the Minister at this time importing any of these articles from foreign countries?

Mr. Strachey

I do not know what articles the hon. Member has in mind.

Mr. Bossom

Fruit and vegetables—peaches, and things of that sort?

Mr. Strachey

Some peaches, of course.

Mr. George Wallace

Is my right hon. Friend aware that if all producers got together and adopted marketing schemes instead of asking the State to do everything for them they would be better off?

Mr. Speaker

We are getting a bit too wide of the Question.