§ 2. Mr. Farrasked the Minister of Agriculture, Fisheries and Food by how much the price of a home-grown loaf would be increased if the wheat subsidy were abolished and the full cost charged.
The Joint Parliamentary Secretary to the Ministry of Agriculture, Fisheries and Food (Mr. W. M. F. Vane)The Government guarantee is designed to maintain producers' returns for their wheat. If the guarantee were abolished, home production would be likely to fall heavily and the gap would be filled by imports. Very little bread made entirely from home-grown wheat is sold in this country and it would be difficult to make any worthwhile estimate of the ultimate effect of such a change on the price of bread. In practice millers' bread flour grists contain only about 20 per cent. of home-grown wheat on average.
§ Mr. FarrWhile appreciating that reply and thanking my hon. Friend for it, may I ask whether it is a fact that, if the subsidy were to be abolished, the price of a home-grown loaf would go up by about 3d. or 4d.? Does he fully appreciate the great value to the housewife of the subsidy on wheat?
Mr. VaneI have not worked out the arithmetic in the same way as has my hon. Friend, so I should not like to comment on that figure. It is true that, on the whole, the support system works out to the advantage of the consumers as well as the producers.
§ Mr. LiptonAlthough the Minister is already in very serious trouble with the Treasury because of his £65 million Supplementary Estimate, is it not also a fact that, when the new bread and flour regulations come into force some time next year, the price of better quality bread and flour is likely to be increased?
Mr. VaneBetter quality articles generally tend to be more costly than those of less good quality. But we had better wait until the Order comes into operation before we become too precise.