Mr. KENNEDY JONESasked the Food Controller whether, in view of the statement by the Parliamentary Secretary to the Ministry of Food that there is an actual loss to the State at present of at least 4d. on every quartern loaf sold at 9d., he will state, by adducing prices, how the cost of 13d. per quartern loaf to the State is arrived at; what is the aggregate of this loss per year to the State; and whether there is any immediate prospect of a reduction in this amount?
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§ Mr. McCURDYSince the statement to which the hon. Member refers was made some alteration in the position has taken place. It is estimated that the loss to the State at the present time is very nearly Id. on every pound of flour sold; and the loss on a quartern loaf is, accordingly, nearer 3d.than 4d. The present annual loss to the State in respect of this subsidy is estimated to be at the rate of £47,000,000. This estimate is based on the average cost of wheat as 84s. 6d. per 480lbs., the average cost of imported flour as 76s. 9d. per sack of 280lbs., and the average net price of home-milled and imported flour as 44s. 6d. per sack of 280 lbs. There appears to be no prospect of any material reduction on this amount, at any rate during the next few months. I should add that the cost prices which I have quoted are subject to adjustment on the settlement of the accounts of the Inter-Allied Wheat Executive.