§ 133. Mr. Donnellyasked the Minister of Food, in view of the increase in milk prices of 4d. per gallon to the consumer and ½d. per gallon to the producer, what is the estimated saving in milk subsidy; and what is his estimate of the likely fall in the consumption of liquid milk.
§ 138. Mr. Crouchasked the Minister of Food what is the estimated increase of payment to milk producers by the raising of the wholesale price by.68d. per gallon.
Dr. HillThe estimated saving in milk subsidy is about £6 million in 1951–52. The increased payments to milk producers in 1951–52 are estimated at about £2 million. It is difficult to make any reliable estimate of the fall in consumption if any of liquid milk. A similar price increase imposed by the late Government in the summer of this year has not resulted in any decrease in consumption.
§ 134. Mr. Awberyasked the Minister of Food what proportion of the 4d. per gallon increase in the price of milk will go to the primary producer; and what proportion to the distributor.
§ 139. Mr. Perkinsasked the Minister of Food why consumers of milk will have to pay an extra 4d. a gallon when the producer will only receive.68d. per gallon.
Dr. HillThere is no direct connection between the increased price which the producer will receive for milk, and the increased retail price which consumers will pay. The increase of.68d. per gallon to producers was one of the adjustments in farm prices which, as my right hon. Friend the Minister of Agriculture stated on 29th November, were necessary to take account of the increased costs of farmers.
316WThe seasonal increase of 4d. a gallon in the retail price of milk, as in the case of other retail price increases, was necessary in order to keep the expenditure on food subsidies as a whole within the current ceiling. The margins payable to distributors are negotiated quite separately from prices payable to producers.