HC Deb 17 June 1948 vol 452 cc621-2
6. Mr. Peter Freeman

asked the President of the Board of Trade whether he will make a statement on the half-coupon and half-price scheme recently introduced; whether he is satisfied with the results; whether he is aware that where a Purchase Tax is in operation the sale involves a heavy loss to the retailer; and whether it is his intention to modify, continue or extend the arrangement.

Mr. H. Wilson

The scheme allows wholesalers and retailers to sell goods at half-coupon rate if the price, including Purchase Tax where paid, is reduced to not more than half the legal maximum price, and there are special arrangements for manufacturers and for the passing on of goods which wholesalers or retailers have bought at half-coupon rate. The details have been fully explained in a Press notice, of which I am sending my hon. Friend a copy.

The charge of Purchase Tax on non-utility clothing is one among several factors which increase its price above that of utility, and, therefore, increase the amount of the loss which a retailer must incur in selling at half-coupon rate, but I see no reason for giving specially favourable treatment to non-utility clothing on that account. The arrangements were fully discussed in advance with representatives of the principal retail trade associations, and followed the lines of the trade's own proposals. It is too early yet to judge the results of the scheme, but I shall keep the position under review.

Mr. Freeman

Could my right hon. Friend say how extensive has been its use so far?

Mr. Wilson

If my hon. Friend will look at the shops in many parts of the country, as I have during the last fortnight, he will see that in many places these half-coupon, half-price sales are being introduced with great benefit to our consuming public.

Mrs. Jean Mann

Is my right hon. Friend convinced from his perambulations round the shops that there is still too much money chasing too few goods?

Mr. Wilson

No, Sir. As I said after an abortive meeting with the Dundee housewives yesterday morning, for some time I have been of the opinion that the shortage of money rather than a shortage of clothing coupons is one of the big limiting factors for a large section of our population, but that is no reason for taking everything off coupons and allowing those with money to scoop the lot.