HC Deb 27 November 1951 vol 494 cc122-3W
48. Mr. Osborne

asked the Chancellor of the Exchequer how much has been spent on food subsidies for each year separately since the end of the war; and what has been the average price level of the food subsidised taking 1945 as 100 per cent. basis.

Sir A. Salter

The following are the amounts spent on food subsidies, starting with the financial year 1945–46:

£265.5 million. £484.5 million.
£325 million. £424.8 million.
£391.6 million. £400.3 million.

The average price levels of subsidised foods have been calculated for the calendar years starting with 1945 and taking that year as 100.

The average prices asked for in the second part of the Question are:

100. 113.2.
101.5. 120.6.
102.3. 127.7.

Mr. Lewis

asked the Chancellor of the Exchequer if he will give the cost of food subsidies in each of the six years following the First and Second World Wars.

Sir A. Salter

The cost of food subsidies since the Second World War has been as follows:

£million
1945–46 265.5
1946–47 325.0
1947–48 391.6
1948–49 484.5
1949–50 424.8
1950–51 400.3

The main element in these figures is the net trading deficit of the Ministry of Food, incurred in order to keep down the cost to the consumer of basic foodstuffs. During and immediately after the First World War, it was the Ministry's general policy to be self-supporting. It did, however subsidise the growing of potatoes at a cost of £965,000 in 1918–19. There was a bread subsidy, for which the Royal Commission on Wheat Supplies accounted, costing approximately £50 million in 1918–19, £50.5 million in1919–20, and £39.7 million in 1920–21. The Ministry of Agriculture and Fisheries and the Board of Agriculture for Scotland in 1921–22 incurred a total loss of £18.2 million on a guarantee of minimum prices for wheat and oats.