§ LORD LYLE OF WESTBOURNEMy Lords, I beg to ask His Majesty's Government the question which stands in my name on the Order Paper.
§ [The question was as follows:
§ To ask His Majesty's Government, whether they are aware that whereas the price paid to the grower in Jamaica for a case of 72 lbs. of grapefruit amounts to only 5s., the retail selling price to the British public amounts to 48s. per case; whether it is a fact that the Ministry of Food's profit on this transaction approximates to 50 per cent., and whether in the opinion of His Majesty's Government this can be considered a fair and reasonable return in all the circumstances.]
§ LORD HENDERSONMy Lords, supplies of grapefruit imported into the United Kingdom from Jamaica are purchased from the Jamaican Government on an f.o.b. basis, and His Majesty's Government have no information about the price received by the growers. The Ministry's selling prices to wholesalers are based on the average cost of supplies from all sources, not from Jamaica alone, and the noble Lord will appreciate that, apart from loss arising from wastage, there are many charges to be met between the f.o.b. point and the point of sale by the Ministry; for example, freight, handling charges, insurance, inland transportation, overheads and agency expenses. There are, of course, further charges arising between sale to the wholesaler and sale by the retailer.
It is not a fact that the Ministry of Food are making a profit on this com- 178 modity of anything like 50 per cent. Final figures in regard to current purchases are not yet available and while the precise figure for such profit clement as there may be cannot be stated, His Majesty's Government are satisfied that it is very reasonable in the circumstances. It should be borne in mind that on other citrus fruits the Ministry may incur some loss and it is the Ministry's practice to take account of the results of trading in citrus fruits as a whole.
§ LORD LYLE OF WESTBOURNEMy Lords, whilst thanking the noble Lord for his courtesy in the matter, is he not aware that I would not have asked this question had I not realized all these other costs which he has enumerated? is it not a fact that even taking freight, insurance, delivery and all the costs which he has mentioned, the price delivered to the Ministry of Food in this country is 23S. 4½d.? Is it not a fact that His Majesty's Government sell to the first-hand seller at 36s.? Therefore, is that not approximately 50 per cent. profit? How does that tally with the declarations of His Majesty's Government as to profits which should be charged by private individuals? May I ask His Majesty's Government why they will not give the benefit either to the grower in the hard-pressed West Indies or to the consumer? Is it that they wish to make this high profit to hide various losses which they are making owing to be inefficient buying oz other goods?
§ LORD HENDERSONMy Lords I thought I stated quite definitely in my answer that the profit is nothing like 50 per cent., and I fail to understand why the noble Lord should base his supplementary on a statement which I have denied.
§ LORD LYLE OF WESTBOURNEI would not for a moment impute any ill-faith, but the noble Lord challenged rte. I have not been so foolish as to ask this question without knowing ail these costs which I am giving, and perhaps be will deny them. I say that the price delivered over here is 23s. 4½d., with all these costs added, and I say that they are selling to first-hand sellers at 36s. I beg to apologize if I have seemed to be offensive because I did not mean to be.
§ LORD HENDERSONAll I can say to my noble friend is that I will bring these 179 points to the attention of the Ministry. I am sure that the answer which I have given is based on the facts of the case.