§ Mr. Grovesasked the Parliamentary Secretary to the Ministry of Food whether 1350W he is aware that the prices charged for food in British Restaurants, reckoning at retail prices for the food supplied and allowing a reasonable sum for overhead expenses and costs of cooking, show a profit of over 100 per cent.; and what steps he is taking to see that the saving in costs by reason of voluntary help is passed on for the benefit of the consumer?
Major Lloyd GeorgeBritish Restaurants are established by local authorities with the aid of the Ministry of Food on the understanding that they shall be conducted on a fully self-supporting basis, and provided that every effort has been made to observe this condition the Ministry has undertaken to reimburse any approved operating deficiency in the event of a loss being unavoidably incurred. The price of meals served is fixed by the local authority after taking into account the cost of the food and its preparation, overhead expenses and a small margin for contingencies so that any saving in costs resulting from voluntary help is auomatically reflected in the price charged. Local authorities are required to render periodical accounts to the Ministry, where the operating costs and charges are examined to ensure that the Restaurants are being conducted economically and in conformity with the financial principles laid down.