§ Mr. T. Smithasked the Minister of Food the reason for the revocation of S.R.O. 150 of 31st January, 1940, fixing maximum retail milk prices by the substitution for it of S.R.O. 197 of 8th February, 1940, in view of the fact, admitted by the Milk Marketing Board, that the Exchequer grants recently made to it were given on the understanding that retail prices are not increased above the level of last year, and that the effect of S.R.O. 197 is to raise the retail price of milk in rural areas and in towns with populations of less than 10,000 to 7d. a quart at the present time, as compared with 6d. a quart in February, 1939?
§ Mr. W. S. MorrisonThe Milk (Retail Maximum Prices) Order, 1940, of 31st January, 1940, was revoked because the uniform maximum prices prescribed did not make allowance for certain local and special prices under existing contracts and practices. The grant made to the Milk Marketing Boards was conditional on the maintenance for the present of the existing level of retail prices of liquid milk. The maintenance of the local and special prices referred to is not inconsistent with this condition. With regard to the final part of the Question, I would refer to the answer which I gave the hon. Member for North Cumberland (Mr. W. Roberts) yesterday.
§ Colonel Baldwin-Webbasked the Minister of Food whether he is aware that the existing subsidies do not provide sufficient margins to enable producer-retailers of milk in scattered rural areas to meet their costs; and whether, in view of the undesirability of placing these individuals in a position where they would have to abandon their scattered rounds, he will take steps to remedy the present inadequacy of the distributors' margin?
§ Mr. MorrisonThe existing subsidy is granted to the producer-retailer in his capacity as a producer in order to meet the higher costs of milk production. The question of the margin due to the distributor of milk is at present under con-1556W sideration, and I am not yet in a position to make a statement on the subject.
§ Colonel Baldwin-Webbasked the Minister of Food whether he is aware of the difficulties experienced, and the extra costs incurred, by the producers and distributors of milk during January, when transport of milk from farms and outlying villages was seriously impeded by the condition of the roads; and whether any additional allowance will be payable to producers and distributors in respect of these increased costs?
§ Mr. MorrisonNo special allowance can be paid to producers or distributors in respect of the increased costs, due to the bad weather conditions, incurred in transporting milk from the farms to depots and dairies. Many other trades incurred extra distribution costs owing to the weather during January, and it would be impossible to grant compensation in this respect to farmers and milk distributors and withhold it from other trades. Milk producers are obtaining, at the cost of the public funds, an additional 3d. per gallon over the price which they received for milk in January and February of last year, and 2½d. per gallon in March.