§ Mr. Sproatasked the Minister of Agriculture, Fisheries and Food what notification his Department has received of the number of chain stores and/or individual shops that have announced they will cut prices, or have cut prices, following the announcement that selective employment tax will be cut by 50 per cent, from July; what items are concerned; and what estimate he has made of the effect on food and drink prices of the cut in selective employment tax.
§ Mr. Anthony StodartA number of the leading food retailers made immediate price reductions following the announcement of the cut in selective employment tax; other firms have said that they will be able to defer impending price increases or to make price reductions later in the year, once the tax cut has come into effect. While it is not possible to estimate the overall effect on prices, it is clear that this tax reduction has254W eased the inflationary pressures in the distributive trades and provided a useful stimulus to competition.