CAB129-37 — Page 64

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9.

The items so far covered amount to a total reduction

of £43 million over a year as follows:

H

Administration economies, etc.

(Schedule I)

Minor Policy matters

(Schedule II)

£ million

28.0

3:0

4.5

Items (other than Social Services)

involving policy

(Schedule III

Increase of profits tax (13 million) less items (Schedule V) not recommended for abandonment or deferment

7.5

43.0

1.

10.

This figure is a long way short of the necessary total, and any further administrative economies which may be secured in the examination of the measures recommended cannot amount to more than a few millions. The Committee were accordingly obliged to consider other matters raising more important questions of Government policy.

11.

(a) National Health Service

In the case of drug prescriptions, the Minister of Health is of opinion that it would be beneficial to the efficiency of this scheme if a flat rate charge were imposed which would have substantial effect in eliminating unnecessary resort to prescriptions and the Committee recommend that a charge of one shilling should be made for each prescription.

year.

12.

(b)

The charge would produce, a saving of £10 million a

Non-basic foods

The Committee recommend an increase in the price of certain non-basic foods and a cut in retail milk margins which together will produce £3.5 millions a year.

13.

(၁)

Subsidies on Feedingstuffs

•

The Committee believe that in view of the large pro- vision at present included in farmers' incomes for capital expenditure there is scope for some reduction. Any reduction must be secured through an annual or special review of the general economic condition and prospects of the industry. The Committee therefore propose that notice should now be given that the subsidies on feedingstuffs will be discontinued at the time of the next February review. That review will be made with knowledge of the discontinuance and will settle how far the cost will be met by a reduction in the farmers' incomes. Any part of the cost not so met will not, however, be covered by an increase in the ordinary food subsidies but will be passed on to the consumer.

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The Minister of Health is considering what administrative economies he can secure in the Health Departments and the Health Service.

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