§ 48 and 49. Mr. Webbasked the Minister of Food (1) whether, following his decision to end the price control of sausages, he will discontinue the payment of the subsidy in respect of meat supplied to butchers for manufacturing;
(2) if, in the light of his decision to free sausages from price control, he will alter the agreed estimated annual income 1724 of butchers; what estimate he has formed of the adjustments which must be made to their rebates or surcharges; and at what date these consequential adjustments will begin to operate.
Dr. HillThe butchers will not benefit by the subsidy on meat used in sausages. The rebates or surcharges on butchers' wholesale purchase of meat will be adjusted in the light of the periodical costings investigations. Butchers' profits from manufacturing sausages are taken into account in these investigations. There is no subsidy on manufacturing meat supplied to manufacturers.
§ Mr. WebbThat seems to be a rather evasive reply. Will the Parliamentary Secretary say on what estimate it is now proposed to withdraw the supplies of manufactured meat which are subject to subsidy?
Dr. HillToday, as in the time of the right hon. Gentleman, there are periodical costings investigations which cover the whole of the butchers' income from all sources including, for example, sausages. Such an investigation will take place, and if it reveals recoupment above the fixed level a corresponding change will be made in the rebate.
§ Mr. WebbDoes that mean that the price of the sausage will be increased to the consumer and that the butcher will still get subsidies from the Exchequer?