§ 37. Mrs. Mannasked the Minister of Food to what extent wholesale prices of food commodities have varied between mid-December, 1951, and mid-December, 1952; and by how much per month the items detailed in the cost-of-living index have fluctuated during this period with respect to wholesale prices.
§ Major Lloyd GeorgeThe wholesale prices of food commodities, as measured by the Board of Trade index, rose by 12 per cent. between December, 1951, and December, 1952. Nearly all the items in this index enter into the food section of the Interim Index of Retail Prices. The two indices differ in detail, but the figure I have just given, which represents an average rise of 1 per cent. per month, is the best available measure of the general movement of wholesale prices.
§ Mrs. MannIs the Minister aware that the O.E.E.C. Report shows that there has been a fall in wholesale prices; and even on the right hon. and gallant Gentleman's estimate that there has been an increase of 1 per cent, per month, does that justify a rise of 13 per cent. in retail prices?
§ Major Lloyd GeorgeThe wholesale index cannot really be compared with the retail index, because the retail index is based on the new foundation started by the late Administration. The wholesale index has not yet been brought up to date, and that is now being done. There are other causes which make a difference between the two.
§ 38. Mrs. Mannasked the Minister of Food if he is aware that between mid-December, 1951, and mid-December, 1952, bread increased 24 per cent., flour 36 per cent., beef 26 per cent., mutton and lamb 19 per cent., bacon 51 per cent., milk 8 per cent., butter 20 per cent., margarine 14 per cent., cooking fat 13 per cent., cheese 86 per cent., sugar 17 per cent., biscuits 15 per cent., tea 16 per cent., vegetables 11 per cent., with further increases on cereals and tinned foods; and if he will state what factors, apart from withdrawal of subsidies, influenced these price increases.
§ Major Lloyd GeorgeYes, Sir. The main causes of these increases in price were increased costs of procurement, processing and distribution.
§ Mrs. MannIs the right hon. and gallant Gentleman aware that these figures have been taken from the cost-of-living index and that they represent the true position, but in his replies he has denied that the prices have soared to these figures?
§ Major Lloyd GeorgeI have never denied it but have given the figures of the retail index, which are known to everyone and which it would be foolish to deny. The fact is that a large part of this increase in price was attributable to the policy of the late Administration in not keeping within the ceiling. The late Administration decided on the ceiling of £410 million. They were running well above that and did not take any steps to bring it down, but left it to us to do so. That is one of the main causes.
§ Mrs. MannI have excluded from this Question the food subsidy items and, therefore, there are a great many items covered by Question No. 38 to which the alleged £410 million ceiling does not apply at all.
§ Major Lloyd GeorgeMost of the foodstuffs the hon. Lady mentions are, of course, affected by the food subsidies.
§ 39. Mrs. Mannasked the Minister of Food if he is aware that the retail index lists tea as 16 per cent. higher in price between mid-December, 1951, and mid-December, 1952; and what arrangements were made when controls were removed from tea to fix a ceiling price to each brand below which ceiling prices could be competitive.
§ Major Lloyd GeorgeThe increase arose from the removal of the subsidy last June, and had no connection with decontrol. To retain maximum prices for blends would have been quite inconsistent with decontrol.
§ Mrs. MannIs the Minister aware that it is on record that on 12th March he gave the increased general average on tea as a difference between 3s. 3½d. and 3s. 4d. a lb., namely, about 4 per cent., whereas his own official index figure is 16 per cent.? Can he explain why?
§ Major Lloyd GeorgeThe hon. Lady is getting mixed up between the removal of control and the removal of subsidies. 1207 What I say is that there has been practically no increase since the removal of controls: the increase has been since the removal of subsidies.
§ Mr. WilleyWhen the Minister was talking about the subsidy ceiling, did he forget that he said on the wireless recently that he had reduced the ceiling to £220 million, and that that is the cause of this price increase?
§ Major Lloyd GeorgeI did exactly the same thing, not on such a big scale, as hon. Members opposite did when the subsidies would otherwise have been £585 million.