§ 64. Mr. Chetwyndasked the Chancellor of the Exchequer what will be the effect upon the cost-of-living index of the changes in the special review of agricultural prices.
§ Mr. R. A. ButlerThe food subsidies are made up of the deficit incurred by the Ministry of Food in trading in both imported and home produced food and of certain amounts charged on the Votes of other Departments. Changes in agricultural prices following a special review are therefore only one of several factors to be taken into account in deciding from time to time the level of retail food prices necessary to conform to the existing rate of food subsidies.
The amount involved during the current financial year in the recent changes is estimated at under £8 million. The effect on the cost of living index of increases in retail food prices necessary to make up this amount depends on the foods chosen to bear these increases.
My right hon. Friend the Minister of Food will be making an announcement later this month, which I cannot anticipate.