§ 14. Mr. Piratinasked the Minister of Fuel and Power how many retail, wholesale and combined wholesale and retail, coal distributors there are in the United Kingdom.
§ Mr. GaitskellIt is estimated that there are in the United Kingdom approximately 24,000 retail, 200 wholesale and 450 combined wholesale and retail coal distributors. A substantial proportion of distributors whose business is mainly retail also engage in a small way in the wholesale trade.
§ 15. Mr. Piratinasked the Minister of Fuel and Power whether a coal distributing firm, which buys direct from the colliery and sells direct to the consumer, is entitled to both wholesale and retail profits.
§ Mr. GaitskellYes, Sir.
§ 16. Mr. Piratinasked the Minister of Fuel and Power whether he will state the average addition to the price of coal per ton from the time it leaves the pithead to the time it reaches the consumer; what proportion this is to the original cost at pithead; and what are the factors making up the additional cost, such as wholesaler cost, retailer cost, transport, etc.
§ Mr. GaitskellThe additions to the price of coal between the pithead and the consumer vary widely according to the distance the coal has to be transported and the local conditions of distribution, but in the case of domestic consumers are estimated to amount on the average to 27s. a ton or about 54 per cent. of the pithead price of domestic coals. These additions cover rail transport, which accounts for about 10s. a ton, the labour and other expenses of cartage to consumers in small quantities, the cost of bags, bagging, storage and administration, allowances for losses in weight and the profit margins of the wholesalers and retailers.
§ Mr. PiratinI have left my supplementary question until now in order to save time, Mr. Speaker. The question I want to ask the Minister is this: in view of the very strange answers which he has given, for example, to Question No. 15, that the wholesaler gets both wholesale and retail profit if serving retail, will the Minister immediately institute an examination of 2265 the question in order that the distribution of coal may be done efficiently, and also as cheaply as possible?
§ Mr. GaitskellThe reason why the wholesaler gets a margin is that he performs a wholesale function, and I see no reason at the moment for instituting such an inquiry.
§ Mr. A. Edward DaviesIs not the Minister satisfied that there is too great a disparity between the cost of production at the pithead and the price when it reaches the ordinary consumer's coal cellar, and that there is great scope for an inquiry and for something to be done soon?
§ Mr. GaitskellThat is a matter of opinion, but, as I have told the House on other occasions, the National Coal Board are in touch with the distributors on this matter.
§ Mr. Emrys HughesCould the Minister tell us what price he pays for coal in his office in London and how much are the distribution costs involved in that?
§ Mr. GaitskellThe Ministry of Works supply the coal in my office.
§ Mr. Charles WilliamsIs the right hon. Gentleman aware that not very long ago we were told that coal would be much cheaper under this Government, and that it is much dearer?
§ Mr. AustinIn regard to the last supplementary question, may I ask my right hon. Friend whether the fact is that, if distribution came under public ownership, great economies would be effected, and the price of coal would be reduced?