§ 65. Mr. Channonasked the Minister of Food whether he is aware that on 11th August the Director of Tea in a circular relating to public auctions stated that subsidy rates would be decided and announced well before April, 1951, and the intention was that these would remain firm for the first year; that on 8th November the Director wrote informing the trade that the subsidy would be on the basis of a flat rate of 1s. per pound but that in a Press announcement on 15th March, 1951, the Director announced that the subsidy would be reduced from 1s. to 8d. a pound; and whether he can now give an assurance that there will be no further change in the details of the scheme when resumption of sales is contemplated.
§ Mr. WebbThe recent subsidy reduction is covered by the terms of the letter of 8th November which announced the original subsidy rate. I must reserve the right to vary the retail price of tea to meet changing conditions. I cannot, therefore, give the assurance requested.