§ 7. Mr. David Steelasked the Secretary of State for Prices and Consumer Protection what has been the total cost of food subsidies since the end of October 1974; which foods are covered by them; and what is the cost per food of these subsidies.
Mr. Alan WilliamsThe total cost of food subsidies in the 12 months November 1974-October 1975 was about £625 million. With permission, I shall circulate the individual costs of subsidised foods in the Official Report.
§ Mr. SteelDoes the hon. Gentleman agree that that £625 million could have been more effectively spent in giving help to those who are most in need? What is the Government's precise timetable for phasing out these wasteful subsidies?
Mr. Alan WilliamsI am surprised that in the first Question tabled to my Department on this subject from the Liberal Benches for 10 months the hon. Member has not come up with something more original. I was equally surprised at the timing, just before Christmas, of a question pressing us to increase food prices. No doubt the hon. Gentleman's constituents will note that Scrooge is alive and well, and is a member of the Liberal Party.
§ Mr. Edwin WainwrightWill my hon. Friend say whether the Department has taken into account what may happen as a result of the shortfall in the Russian wheat harvest—despite the increase in the American wheat harvest—namely, that there may be a greater demand for wheat and that, therefore, the price will go up, which will be detrimental to consumers in this country as well as to those 14 in other parts of the world? This will mean that subsidies will have to be increased.
Mr. Alan WilliamsMy hon. Friend is right to draw attention to this difficulty. I gather that his country is fortunate, in that much of our supply has already been purchased.
§ Mr. Giles ShawWill the Minister of State please answer the question asked by the hon. Member for Roxburgh, Selkirk and Peebles (Mr. Steel)? What is the Government's programme for phasing out food subsidies? Is it behind schedule, in advance of, or on schedule?
§ Following is the information:
§ The foods subsidised and their individual cost were as follows:
| Milk | £336 million |
| Bread | £85 million |
| Butter | £104 million |
| Cheese | £63 million |
| Flour | £7 million |
| Tea | £30 million |