§ 58. Mr. Walkdenasked the Minister of Food to what extent the selling price of sugar or sweetening substances supplied to 939 sweet, confectionery, chocolate, soft drinks and ice cream manufacturers during 1946 has been subject to any subsidy from Treasury funds; and what are the respective, and total costs.
§ The Minister of Food (Mr. Strachey)The price of sugar to food manufacturers is lower than the current cost of production because of recent increases in the price of raw sugar. The cost to the Exchequer in the calendar year 1946 totalled £1,972,000 for the industries mentioned. With my hon. Friend's permission I will circulate the details of payments in the OFFICIAL REPORT
§ Mr. WalkdenWill my right hon. Friend tell the House what is the principal reason for subsidising sugar for any of these industries at all? What on earth has it got' to do with the cost of living, which I understand is the fundamental reason for subsidising foodstuffs or raw materials?
§ Mr. StracheyIt is simply that the cost of these foodstuffs would necessarily go up without the subsidy.
§ Mr. WalkdenHow would it affect the cost of living if these articles are not included in the index figure?
§ Mr. StracheyI cannot alter the index figure; that is another matter.
§ Mr. WalkdenWhy not subsidise other commodities?
§ Following are the details:
| £ | |
| Sugar confectionery | 742,270 |
| Flour confectionery | 827,770 |
| Chocolate | 214,700 |
| Soft drinks | 127,930 |
| Ice cream | 59,530 |
| Total | £1,972,200 |