§ 54. Mr. Harrisonasked the President of the Board of Trade if he will seek powers to have price labels affixed to packets of cigarettes to prevent the hoarding of these by manufacturers and retailers, to take advantage of alterations in price caused by tax changes, in view of the declared profits that have been made in this way.
§ Mr. BelcherNo, Sir. I have no evidence of the practice to which my hon. Friend refers in his Question.
§ Mr. HarrisonIs the Minister aware that in the public balance sheets of the large tobacco companies there has been an indication that profits have been made in this way to the extent of nearly £1,000,000. Is it possible for the Minister to obtain some assessment of the profits that may be made and have been made, in the retail shops, in addition to those made by the manufacturers?
§ Mr. BelcherI understand that the profits to which the hon. Member refers are profits arising from stocks of unmanufactured tobacco in the hands of manufacturers. An answer was given in the House by the Chancellor of the Exchequer 1009 and the Financial Secretary to the Treasury on IIth and 16th December, that the leading manufacturers have given an undertaking that any amount gained by the increase in the prices of the stocks of unmanufactured tobacco would be earmarked to cover the situation that would develop when the prices come down.
§ Sir F. SandersonWould not the fixing of price labels be likely to have the opposite effect to that which the hon. Member desires, since any alteration in the taxation is likely to be in a downward direction?
§ Mr. BelcherIt is true that if price labels were fixed to the packets, and there was a reduction in taxation, that would still leave the stocks of cigarettes and tobacco with price labels on them, and there would be a substantial profit.