§ 18. Mr. Michael Lathamasked the Secretary of State for Prices and Consumer Protection what effect the recently announced arrangements for purchasing sugar will have on the food price index.
§ Mr. MaclennanFollowing the agreement to pay £140 per ton fob to Commonwealth sugar suppliers for shipments between 1st September 1974 and 31st December 1974, the average retail price of a 2-1b. bag of granulated sugar has risen by 4½p. The price of sugar next year will depend on a number of factors including the outcome of price negotiations with Commonwealth suppliers and the quantities subject to the EEC subsidy scheme. An increase of 1p in the retail price of the 2-lb. bag of granulated sugar raises the food index by 0.16 points.
§ Mr. LathamHow much of the weekly benefit of food subsidies will be wiped out by the increase in sugar prices during the next 12 months?
§ Mr. MaclennanThe hon. Gentleman will know that it is impossible for me to answer that question until the level is settled, and this depends on the current negotiations with the Protocol 22 countries and on the outcome of the Lardinois proposals.
§ Mr. William HamiltonDoes my hon. Friend recognise that in view of the rotten state of the nation's teeth—particularly children's teeth—and the growing obesity among older people, sugar is one commodity that ought not to be subsidised?
§ Mr. MaclennanIt is true that we as a nation eat substantially more sugar than other countries. I have no doubt that from the point of view of that consideration my hon. Friend's remarks are justified.