§ Mr. Shepherdasked the Secretary of State for Prices and Consumer Protection what has been the effect on the retail price index of the removal of each of the food subsidies over the last year, step by step.
§ Mr. MaclennanThe precise effect on the retail price index of changes in the food subsidies cannot be calculated. The subsidies are paid at the first-hand level and when there are large stocks in the distributive chain on which subsidy has 215W already been paid, as has commonly been the case for butter, cheese, flour and tea, a change in the subsidy rate is not immediately reflected at the retail level. In addition, the milk subsidy is paid as a global amount for a year under the pro-
RPI effect points 9th August 1976— Bread: —½p for large and small loaves … … … … … … 0.05 26th September 1976— Tea: —8p per lb. (abolition) … … … … … … 0.08 14th November 1976— Butter:— 3p per lb. … … … … … … +0.06 Cheese:—3p per lb. … … … … … … +0.04 1st December 1976— Milk: —1p per pint … … … … … … +0.33 28th December 1976— Butter: —4p per lb. (abolition) … … … … … … +0.08 Cheese: —4p per lb … … … … … … +0.06 2nd January 1977— Bread: —½p for large loaves … … … … … … +0.04 1st April 1977— Milk: —½p per pint … … … … … … +0.17 1st May 1977— Flour: l p per lb. (abolition) … … … … … … +0.02 Butter: +l0p per lb. (reintroduction) … … … … … … -0.20 17th July 1977— Milk: +lp per pint … … … … … … -0.33 Bread: —1p for large loaves (abolition) … … … … … … +0.10 —½p for small loaves (abolition) … … … … … … Cheese: —3p per lb. (abolition) … … … … … … +0.04