42. Mr. Wakefieldasked the Minister of Food whether, for the present flat rate bread subsidy, he will consider substituting 1658 a graduated subsidy based on output, that is, the higher the output, the less the subsidy.
§ Mr. F. WilleyWe have already considered this proposal, and have decided that the payment of a graduated subsidy based on output would not be equitable to all sections of the trade. A baker's profits depend on the nature of his business and the size of the area which he serves. There is no necessary relationship between profits and volume of output.
Mr. WakefieldIs the Minister aware that the big plant bakers get far more in the way of subsidies than they actually need, whereas the small bakers who use, perhaps, only one or two sacks of flour a day are going out of business because they cannot get enough?
§ Mr. WilleyThe hon. Gentleman's proposal is not unattractive, but, having made a careful costings inquiry, it does not seem that the costings facts would support his contention.
§ Mr. FernyhoughCan my hon. Friend say whether this is a Tory method of reducing the cost of living?