HC Deb 22 February 1954 vol 524 cc24-6
45. Mr. Willey

asked the Minister of Food whether, in view of the announcement that there is to be a further increase in the price of tea next month, he will now reintroduce price control.

Major Lloyd George

No, Sir.

Mr. Willey

Will the Minister rouse himself? Is he aware that when he made his political broadcast on the wireless he made a very big point about the effects of decontrol on tea, and that to the housewives the effect has been disastrous in that there have been price increases within two months? Why will he not do something about it?

Major Lloyd George

The hon. Gentleman and his colleagues found the same thing happening when they were in office. They realised that the control of tea prices over here has no effect on the cost of production in India, and twice, in 1947 and 1951, the price of tea was put up, under control, by 4d. a 1b. because the price of getting the tea had gone up.

Mr. T. Reid

Is the Minister aware that the cost of production had nothing whatever to do with the amount of increase in prices? Is he aware that it is not the producers who are asking for an increase but the distributors and blenders?

Major Lloyd George

The hon. Member knows that a particular type of tea which is important for blending is in short supply because when there is a fall in demand for this tea the gardens reduce production. The cost of production has a great deal to do with the selling price, and that cost has gone up about three times since before the war. That is bound to have an effect on prices eventually.

Mr. Chetwynd

Can the Minister explain how it is that he said that when it was open to the private buyer to scour the world markets prices would drop, and now prices have not dropped? Will he explain why that has been so?

Major Lloyd George

As I have told the House, the same thing happened twice before under control. One can only buy at the price at which the tea is available. The argument of hon. Members opposite was that by controlling tea one brought the price down. It is quite untrue. I have shown already that on two occasions during the last Administration the price went up by 4d. a 1b., under control, because it cost more to buy the tea. As supplies increase, I think that it will be found that, before very long, tea prices will be down again.

Sir H. Williams

Is my right hon. and gallant Friend aware that the price of tea is to some extent influenced by the wages paid to those working in the tea gardens in India and Ceylon? Will he take notice that hon. Members opposite want to reduce those wages?

Major Lloyd George

My hon. Friend is perfectly right. Wages have gone up in the tea gardens. hon. Members opposite told us in "Challenge to Britain" that they want to raise the standard of living in underdeveloped countries, and I assume that this is an instance of underdeveloped countries, but when it comes to paying for the cost of it they do not like it.

Mr. Willey

On a point of order. As the right hon. and gallant Gentleman and his colleague appear to be misinformed, I wish to give notice that I shall endeavour to raise this matter at the earliest opportunity on the Adjournment.

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