§ Mr. Nicholas Wintertonasked the Secretary of State for Prices and Consumer Protection if she will list in the Official Report the amounts by which various foodstuffs are subsidised due to the discrepancy between the £ sterling and the green pound.
§ Mr. MaclennanThe present gap between the representative rate of the pound, the green pound and the market exchange rate is 22.4 per cent. This gap is largely made up by monetary compensatory amounts (MCAs) which are paid out of the EEC budget and act as subsidies on many food imports into the United Kingdom. The MCA percentage for the week beginning 7th June is 20.9 per cent. except for common wheat, for which it is 28.4 per cent. The effect of these arrangements on the retail food index is of the order of 4–5 per cent. The savings to which they give rise on the prices of some of our principal food imports in the week beginning 31st May was:
£ per tonne Common wheat 14.2 Beef carcases 184.8 Bacon sides 143.8 Butter (82 per cent.) 188.5 White sugar 33.3
§ Mr. Nicholas Wintertonasked the Secretary of State for Prices and Consumer Protection if she will estimate the reduction in the cost of living arising from the Government's food subsidy programme for (a) a single retirement pensioner household, (b) a married retirement pensioner household, (c) a married couple with two children and (d) a married couple with four children.
§ Mr. MaclennanThe estimated current weekly savings in food expenditure are as follows:
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- (a) Single retirement pensioner household: 23p.
- (b) Married retirement pensioner household: 39p.
- (c) Married couple with two children: 65p.
- (d) Married couple with four or more children: 91 p.
§ Mr. Nicholas Wintertonasked the Secretary of State for Prices and Consumer Protection if she will list in the Official Report the complete list of foods which are at present subsidised; and what is the current level of subsidy on each unit.
§ Mr. MaclennanThe list of subsidised foods and the estimated level of subsidy in terms of its effect at the retail level are as follows:
- Milk—2p per pint
- Butter—7p per lb
- Cheese—10p per lb
- Bread—2p per large loaf
- Tea—8p per lb
- Household flour—3p per 3 lb bag
§ Mr. Ron Thomasasked the Secretary of State for Prices and Consumer Protection if she will publish in the Official Report a list of those items of goods and services included in the index of retail prices which attract a subsidy.
§ Mr. MaclennanSubsidies expressly designed to hold down prices are paid in respect of the following goods and services:
- Milk
- Butter
- Household flour
- Most types of cheese, bread and tea School meals
- Some rents and rates
- Some bus fares
All these items are included in the retail price index. It is not possible to identify precisely the many other items included in the RPI whose prices may be affected by Government financial support provided for other express purposes. For example, some rail fares are subsidised for the purposes of maintaining services and the prices of many other items may be indirectly affected by schemes designed to create or maintain employment.
§ Mr. Neubertasked the Secretary of State for Prices and Consumer Protection whether, in the light of the Government's decision not to proceed with the child benefit scheme, she proposes any change in the published programme for the phasing out of food subsidies.
§ Mr. MaclennanChild benefits under the Child Benefit Act 1975 will be introduced in April 1977. My right hon. Friend has no plans to change the over-570W all programme for food subsidy expenditure.