Danish Butter and Bacon (Hansard, 17 November 1955)

§ 37. Mr. Fernyhough
asked the Minister of Agriculture, Fisheries and Food the amount of profit made by Her Majesty's Government on the sale to first-hand distributors of Danish butter and Danish bacon for the year ended 30th September, 1955.

§ 63. Mr. F. Willey
asked the Minister of Agriculture, Fisheries and Food what profit or loss his Department has made during the present financial year on the sale of bacon.

Mr. Amory
It is not the practice to disclose trading results relating to individual contracts or particulars of my Department's current trading position.

§ Mr. Fernyhough
What has the Minister got to hide in this matter? The Government have now finished bulk buying. Is it not a fact that the profits are so big that the Government are ashamed to reveal them? Would not the right hon. Gentleman agree that during June, July, August and September the Government were making a profit of 9d. on every 1b. of Danish butter and 1s. on every 1b. of bacon? Does he not think it scandalous, with the cost of living as high as it is, that the Government do not use bulk buying in order to keep prices lower?

Mr. Amory
I am certain that anyone with experience in commerce would agree that it would be quite disastrous to adopt the suggestion which the hon. Member has made. The Government have not got out of trading in bacon. On the question of profits and losses, I would remind the hon. Member that the Labour Government carried out much more Government trading when they were in power than we do today, and if he consults some of his colleagues upon the matter they will tell him how very often it happens that the profits on one transaction are cancelled out by the losses on another.

Mr. T. Williams
Was it not the case that during the period of office of the Labour Government, if they did make any profit on bulk buying, they provided at least £300 million or £400 million in consumer subsidies?

Mr. Amory
I seem to remember that in those days the losses in trading greatly exceeded the profits.

§ Mr. Willey
Does not the right hon. Gentleman agree that it was thoroughly reprehensible to reduce the price of bacon immediately before the Election and to increase it immediately after the Election and that it is also reprehensible to be making a profit upon bacon now, when retail prices are far too high?

Mr. Amory
Very sound commercial practice was followed. When demand decreases one lowers one's price to meet 771 it, and when demand increases again, beyond the supplies available, one raises the price in order to equalise the position.

§ Mr. H. Morrison
Does the right hon. Gentleman really mean that it was a sound commercial practice—or does he mean that it was a sound political practice—to play about with prices before and after the Election in order to suit the electoral convenience of the Government in this matter?

Mr. Amory
I used exactly the words I meant to use.

§ Mr. Willey
In view of the unsatisfactory reply of the right hon. Gentleman, I beg to give notice that I shall raise this matter at an early opportunity on the Adjournment.