HC Deb 20 December 1976 vol 923 cc24-5
28. Mr. Montgomery

asked the Secretary of State for Prices and Consumer Protection what is the effect of food subsidies on the retail price index at present.

Mr. Maclennan

The estimated saving on the RPI is 0.7 points or 0.4 per cent.

Mr. Montgomery

Is the Minister aware that last week food subsidies were reduced by almost exactly the amount which the Opposition urged they should be cut in July, when the Government voted in favour of keeping them at a higher level? Is there, perhaps, a ray of hope in that it has taken the Government only five months to recognise their mistake in this case?

Mr. Maclennan

Those have been five important months, and I have no doubt that the continuance of subsidies during them will have helped a number of people on low incomes.

Mr. Gow

Will the Minister tell the House the date on which the Government intend to discontinue food subsidies entirely?

Mr. Maclennan

Not this afternoon.