Olive Oil

HC Deb 03 April 1950 vol 473 cc831-2

4. Mr. Bell

asked the Minister of Food why his Department, acting through the Olive Oil Association, is selling olive oil at 25s. 3d. a gallon to wholesale buyers in this country when those buyers could buy best quality olive oil at 15s. 8d. a gallon f.o.b. at Spanish ports; and whether in the circumstances he will free the importation of olive oil from control by his Department.

Mr. S. N. Evans

My Department does not now buy or sell olive oil. The first step towards the decontrol of the olive oil trade was made in 1947, when the Ministry's stocks were taken over by the Olive Oil Importers' Association. So as to make the changeover to full private trading as smooth as possible, an undertaking was given to this Association that they should be the sole importers until stocks had been substantially reduced. This arrangement will terminate not later than the autumn of this year.

Mr. Bell

Does the Minister's answer mean that until the autumn of this year home consumers of olive oil will have to pay 8s. a gallon above the world price?

Mr. Evans

It is quite true that, at the moment, oil can be bought cheaper than at the Association's price, but insurance, freight charges, and duty have to be added to the figure mentioned in the Question and, of course, the importers' profits. There is, here, a very real problem. Nobody could calculate with mathematical precision when the market would change from a seller's to a buyer's market, and I do not think it would be right to throw members of this Association to the wolves.

Mr. Harrison

Does this mean that the Department themselves are very much concerned about this obvious difference in price to the purchaser of olive oil abroad and in this country? Will my hon. Friend's Department tackle seriously this obvious anomaly?

Sir David Robertson

Does the hon. Gentleman's reply mean that his Department, in bulk buying, paid too high a price, that they saddled importers with the stock and that they are now protecting themselves and importers at the expense of the public?

Mr. Evans

No, I did not mean anything of the kind. We entered into an arrangement with this Association as far back as 1947. There was a very good yield of olive oil last year. That, of course, has changed the market and, in the circumstances, I cannot agree that it would be right to throw members of the Association to the wolves.