N.A.A.F.I. (Hansard, 17 July 1956)

HC Deb 17 July 1956 vol 556 cc1016-23 1016

§ 9. Captain Corfield
asked the Secretary of State for War how the margin of profit charged by the Navy, Army and Air Force Institutes compares with commercial organisations; if he is satisfied that the Navy, Army and Air Force Institutes price structure is reasonable, in view of its monopolistic position; and if he will make a statement.

§ Mr. Head
I am not in a position to know what margin of profit exists in the prices charged by commercial organisations. N.A.A.F.I. charges do not exceed fair prices charged for equivalent goods locally. Where there is any customs concession, this is passed on to the Service man in the form of lower prices. N.A.A.F.I. rarely have the monopoly which my hon. and gallant Friend suggests because, apart from the competition of local tradesmen, there are frequently canteens operated by voluntary welfare organisations.

§ Captain Corfield
Is my right hon. Friend aware that whereas a regimental canteen can produce an ordinary cup of tea at the equivalent of 2d., the N.A.A.F.I. in Cyprus produces a cup of tea of about one-third of the size for the equivalent of 6d.? Does he feel that that margin is justified by the extra expense which N.A.A.F.I. has to meet as compared with regimental canteens?

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§ Mr. Head
In the first place, a N.A.A.F.I. cup of tea does not cost 6d., and in the second place, a regimental canteen is run in exceptional circumstances with the regiment's own labour, which is a waste of manpower for the British Army.

§ 10. Captain Corfield
asked the Secretary of State for War what are his regulations as to the amount of stock required to be carried by Navy, Army and Air Force Institutes canteens in stations abroad where there are no civilian facilities available to troops.