§ 66. Brigadier Raynerasked the Financial Secretary to the Treasury what is the net cost of the tea subsidy per week per head after allowing for the collection of Customs Duty; what is the annual total collection of import duties on all the subsidised rationed foodstuffs; and will he explain his policy of, at the same time. subsidising and taxing some foodstuffs.
§ Mr. JayThe present cost of the tea subsidy per week per head on the basis of the 2 oz. ration is 1¼d. The Customs Duty on 2 oz. of tea is ¾d. I estimate the current annual total collection of import duties on all the subsidised rationed foodstuffs at £40 million. I do not consider that there is any direct connection between the import duties on foodstuffs100W and the subsidies. The import duties are a feature of general long-term fiscal policy, whereas the food subsidies are designed to meet a temporary period of high prices.