HC Deb 21 November 1949 vol 470 cc12-3
21. Commander Galbraith

asked the Minister of Food what is the turnover or total sales on which he calculates that retail butchers are making a net profit of £16,250,000 per annum.

Mr. Strachey

The estimated turnover on which it is calculated that retail butchers are making a net profit of £16,250,000 per annum is £243,000,000 per annum.

22. Commander Galbraith

asked the Minister of Food what is the net margin on the sale of meat by retail butchers which is taken as the basis for maintaining the margin at a reasonable level through adjustments by surcharges or rebates on wholesale prices.

Mr. Strachey

The net margin allowed to butchers is based upon the prewar profitability of the trade, and takes into account existing conditions.

Commander Galbraith

Is the right hon. Gentleman not able to state the figure, in view of the fact that he has said that he makes adjustments to obtain a reasonable level? Is it 10, 20 or 17 per cent.?

Mr. Strachey

The hon. and gallant Member could work out the percentage figure himself. It is 6⅔ per cent., which is slightly above the pre-war figure.

Mr. H. Hynd

In fixing the profit margins, does my right hon. Friend take into consideration the fact that traders today do not have the same expenses as before the war—for example, for advertising and deliveries?

Mr. Strachey

We try to take into account these factors and factors on the other side, and that is the result.

Colonel Ropner

Is not this figure of a fraction over 6 per cent. a considerably lower margin of profit than the Minister agreed was a fair one some time ago?

Mr. Strachey

No, Sir. It is slightly above the pre-war one.

Mr. Keenan

Can the Minister say what, on the percentage basis, is the approximate profit which they get from the total turnover? Am I right in thinking that it is over 20 per cent. of the total turnover?

Mr. Strachey

No, this is the net profit figure. If my hon. Friend wants to go further into it, he had better put down a Question.

Commander Galbraith

Is the figure which the Minister has given to us the percentage of the net profit to turn-over?

Mr. Strachey

Yes, Sir.

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