§ 97. Mr. Shephardasked the President of the Board of Trade the effect on prices of utility goods of the withdrawal of subsidies on leather, cotton and wool.
§ Mr. H. WilsonThe removal of the subsidies on utility cotton and wool cloth is equivalent to an increase in the price of the cloth itself of the general order of 35 to 40 per cent. which is roughly equivalent to an increase of 15 to 20 per cent. in the costs of the garment makers. The rise in the price of the various types of leather will be by no means uniform but the removal of the subsidy on hides will probably lead to an increase of the order of 15 per cent. in the manufacturing costs of both utility and non-utility footwear. I am now considering what changes in maximum prices may be necessary because of these increases in cost.