§ Mr. Maddenasked the Secretary of State for Prices and Consumer Protection whether she will increase the rate of subsidy on cheese in order to offset the effects of the recent decision on EEC farm prices.
§ Mr. MaclennanMy right hon. Friend has decided to increase the subsidy on cheese to the equivalent of about 12p per lb at the retail level. The existing rate of £105 per ton will be increased to £188 per ton with effect from 11th November. This adjustment, which has been determined in the light of price 269W increases notified to the Price Commission by United Kingdom cheese manufacturers, will offset the effects on cheese prices of the decision on EEC farm prices taken in Brussels on 17th–19th September and confirmed by EEC Ministers in Luxembourg on 2nd October.
The revised estimate of expenditure on the cheese subsidy in 1974–75 is £42.2 million, which represents an increase of £11.7 million over the previous estimate of £30.5 million. A Supplementary Estimate will be presented to the House in due course.