§ Squadron Leader Burden
asked the President of the Board of Trade if it is now the policy of his Department to retain former cash margins when prices rise, as in the case of carpets, while still retaining the existing rates of Purchase Tax.
§ Mr. Rhodes
There has been no change of Board of Trade policy in this matter. The gross percentage margins permitted for distributors in respect of price-controlled consumer goods are revised from time to time to take account of changes in costs, turnover and other relevant factors. Thus it is necessary to review the margins when price increases are likely to be accompanied by a substantial increase in turnover. The aim is to hold the net return on capital employed at a reasonable level; but this does not necessarily mean that the new percentage margin will give the same cash margin as the old one.