HC Deb 21 March 1972 vol 833 cc1330-1
18. Mr. Dykes

asked the Minister of Agriculture, Fisheries and Food what examination has been made within his Department since June, 1970, of ways in which British food distribution costs could be cut so as to exert a downward effect on final retail food prices.

Mr. Prior

This is primarily a matter for the distributive industry, which is generally accepted to operate at a high level of efficiency. Costs have been reduced by the Government action on selective employment tax and other taxes.

Mr. Dykes

I thank my right hon. Friend for that answer, and I immediately pay tribute to the general efficiency of the food distribution sector, especially in comparison with many other European countries. But will my right hon. Friend undertake to look at this again since there is evidence that excessive transport costs, seasonal effects and the construction of the distribution sector mean that in many cases food prices to the housewife will be more than they need be?

Mr. Prior

One is looking constantly at this type of question. Certainly I will look at it again. We know that factors like transport and other ancillary trades have contributed considerably to the increase in costs over recent years.

Mr. Pavitt

Does the Minister accept that the retail distribution by large hypermarkets outside towns creates problems other than those of the cost of the commodity to the consumer? In considering developments of this kind, will the right hon. Gentleman ensure that his Department co-ordinates with the Department of the Environment to ensure that the social consequences are not bad for the community?

Mr. Prior

Certainly, and I am in close touch with my right hon. Friend the Secretary of State for the Environment about this. Recently the Government have published guidance to local authorities and others on the subject of hypermarkets. We have to balance the social considerations with the undoubted economic advantages.