HC Deb 07 March 1918 vol 103 c2136W
Mr. MOLTENO

asked the Parliamentary Secretary to the Ministry of Food whether in fixing the profits of the retailers of national-control tea, the multiple shops are to receive 4½d. for each pound sold and the retail or small grocers are to receive only 2d.; and, if so, whether he can see his way to rectify this unequal treatment and make an arrangement fair to all?

Mr. CLYNES

The comparative profits are not as stated in the first part of the hon. Member's question. The multiple shop companies that buy tea on the market will receive 4½. a pound, ½d. being for expenses incidental to purchase on the market and the remaining 4d. gross retail profit, which must cover the cost of blending and packing, estimated at2d. a pound. The retailer who does not buy on the market will not receive the ½d. for expenses incidental to such buying, but if he does his own blending and packing he will receive the same gross retail profit as the multiple shop, namely, 4d. a pound. If the blending is done for the retailer by the wholesaler from whom he buys the retailer's profit will be reduced by ½d. a pound, the cost of blending. If both blending and packing arc done by the wholesaler the retailer's profit will be reduced by 2d. a pound, the cost of blending and packing. It will be seen. therefore, that there is no inequality of treatment.