§ Mr. LOUGHasked the Food Controller whether he is aware that coffee bought at the lowest price now ruling on the London market costs 1s. 7d. per lb., whereas he has fixed a compulsory retail price of 1s. 6d. in all shops throughout the Kingdom; whether his Department was approached by the home trade section of the London Coffee Association some six months since and asked to fix a wholesale price for superior Santos which would allow retail sales to continue at the price he had fixed; why he did not adopt this course; and whether he will now fix such a price for superior Santos coffee, giving the legitimate trade an adequate notice, seeing that there are forty weeks' stock available for the requirements of the country, and that the high prices have been mainly caused through outside speculation?
2517W
§ Major ASTORThe lowest price now ruling on the London market for raw coffee in bond is approximately 85s. per cwt., and this corresponds to a price of approximately 1s. 4¾d. per lb. for roasted coffee, duty paid. A retailer is not compelled to sell any particular coffee at 1s. 6d. per lb. The Coffee (Retail Prices) Order, 1917, enables a retailer to sell roasted and ground coffee up to 2s. 6d. per lb., so long as he is able and willing to supply the reasonable requirements of any customer for coffee at 1s. 6d. per lb., and displays a notice in his shop to that effect. This Ministry was not approached by the home trade section of the London Coffee Association as suggested, but it has from time to time consulted the Coffee Trade Advisory Committee (which includes the secretary of the home trade section) as to the advisability of fixing wholesale prices for all coffee. After careful inquiries, it was not thought desirable to fix wholesale prices, as, although prices were rising, the rise was considered to be due to the legitimate expenses of keeping coffee in the country and not to speculation. In the course of the last few weeks, however, the wholesale prices of coffee have tended to rise beyond what is considered to be due to legitimate charges, and there is some evidence that this is caused by speculation. Steps have already been taken with a view to eliminating speculation, and it may become necessary for wholesale prices to be fixed. In any case, adequate notice of any action proposed to be taken will be given to the trade.