§ Sir J. Mellorasked the Parliamentary Secretary to the Ministry of Food whether the amount of all capital expenditure in 58W respect of building work for British Restaurants reimbursed to local authorities by his Ministry is repayable to the Ministry at the rate of three per cent. per quarter; and whether due repayment has, so far, been made?
§ Mr. MabaneLocal authorities are instructed to charge such prices for meals at British Restaurants as will cover all running costs and provide in addition for the amortisation of capital expenditure at the rate of 3 per cent. per quarter. The allowance for amortisation forms part of the gross trading profits, and, since these are at the disposal of the Ministry, capital expenditure reimbursed initially by the Ministry will be recovered automatically at the rate of 3 per cent. per quarter in the case of all British Restaurants the profits on which are equal to or exceed the amortisation charge. In any case where the surplus on a local authority's British Restaurant trading account is insufficient to provide the full amount required for the amortisation of the capital expenditure at the prescribed rate the local authority concerned is under no legal obligation to make good the balance out of its own revenues. But in suitable cases the local authority concerned, would be urged by the Ministry to reduce its operating costs and, if necessary, to increase the prices charged for meals so as to provide a gross trading profit sufficient to meet the full amount required for amortisation. No repayments have so far been made by local authorities; recoveries will not begin until the final reimbursements of capital expenditure have been made by the Ministry after the audit of local authorities' claims.