HC Deb 16 December 1974 vol 883 cc312-3W
Mr. Temple-Morris

asked the Minister of Agriculture, Fisheries and Food (1), in view of increased costs and legislation to increase the national insurance contributions of the self-employed, if he will consider in fixing the target rate for the milk distributive trade that inflation should be allowed for both in the fixing of that rate and retrospectively at the end of the period of operation of that rate;

(2) in view of increased costs and legislation to increase the national insurance contributions of the self-employed, if he will consider granting an immediate increase in the target rate for the milk distributive trade.

Mr. Shepherd

asked the Minister of Agriculture, Fisheries and Food (1) if, in view of increased costs and legislation to increase the national insurance contributions of the self-employed, he will review annually the target rate for the self-employed milk distributive trade instead of triennially as is currently the practice;

(2) whether, when negotiating the target rate for the self-employed milk distributive trade, he will recognise the need for the final margin adjustment award to be made not later than six months after the end of the costing year so that the current value of the award is maintained.

Mr. Bishop

The target rate of profit for the milk distributive industry has recently been reviewed by the Government in the light of developments since it was last altered. The target is being increased with effect from 1st October 1974 and reviews will take place annually in future. Before the next review we shall be discussing with the trade the future basis for determining the target.

The final adjustment to the margins for milk distribution, which are based on an annual costings investigation of a representative sample of firms—carried out by independent accountants—is completed as soon as the necessary accurate data are available.