56.
asked the Parliamentary Secretary to the Ministry of Food whether he has considered the criticisms by the chairman and secretary of the Milk Marketing Board at their annual meeting of 11th June that milk had cost more money to deliver in the past six months than at any time in the history of milk selling; and what steps he is taking to correct this?
59 and 60.
asked the Parliamentary Secretary to the Ministry of Food (1) by how much the cost of distributing milk has increased during the last six months; and what are the reasons for the increase;
(2) why the price structure for milk gives the larger distributors an advantage of up to 1¼d. a gallon over their smaller competitors?Information is not yet available as to the cost of distributing milk during the first six months of the operation of the new system. My Noble Friend is, however, satisfied that, during this period, that is to say, from 1st October, 1942, to 31st March, 1943, the total cost was not significantly in excess of the cost of distribution before 1st October, 1942. A material reduction has been made in the distributors' margins since 1st April last, the total saving being at the rate of £2,250,000 a year. I am advised that there is, therefore, no room for doubt that the cost of distributing milk at the present time is materially less than it was under the system which was in operation before 1st October last year. Moreover, all distributive margins are now reviewed at six-monthly intervals in the light of a continuous costing investigation, so that it will be possible to reduce the allowance for distribution in accordance with the economies which are resulting from the rationalisation scheme. Few such economies had been achieved during the six months which ended 31st March last, as the great majority of the schemes did not come into operation until well after the beginning of the present year. With regard to the suggestion that the milk price structure gives an advantage to larger distributors, I would refer my hon. Friends to the replies which I gave on 21st October and 14th April to the hon. and gallant Member for Ripon (Major York).
Is the hon. Gentleman aware that in the case of the sale of a producer-retailer's business of just under 1,000 gallons a week, the distribution cost £21 a week more to the public and the taxpayer than it did before, and will he look into some of these matters instead of taking the advice of people who do not know anything about it?
I indicated that during the first six months of the scheme, that is from October to March, the economies were not fully achieved and that, although the information is not yet available, it is possible that the cost of distribution during that period was greater, but since 1st April there has been a most decided reduction in the cost of distribution, at the rate of £2,250,000 a year.
Is it not astonishing that while the Chairman and Secretary of the Milk Marketing Board hold the view that the distribution is more expensive than before the new price structure, and these officers have a far longer experience of the subject than the Ministry of Food, the Parliamentary Secretary should now contradict that experience?
Yes, I thought it quite surprising.
Am I to understand that there is an advantage to the larger distributors on the ground of their costs being greater?
I gave very long answers to the hon. and gallant Member for Ripon in which the costings investigations were set out and the reasons that govern the price structure. Perhaps the hon. Member will read them.
Would it not be better to do away with this planning?