CAB129-53 — Page 168

Paymaster-General's Office, S. W.1.,

30TH JUNE, 1952,

Page 168

GĄ –

i

THIS DOCUMENT IS THE PROPERTY OF HER BRITANNIC MAJESTY'S

Page 169

CONFIDENTIAL

C. (52) 222

3rd July, 1952

Printed for the Cabinet. July 1952

CABINET

GOVERNMENT

Page 169

Copy No. 71

FOOD PRICES

MEMORANDUM BY THE MINISTER OF FOOD

My colleagues may be interested to know of two impending changes in the prices of foods which are subject to control.

In the Appendices attached to this Memorandum particulars are given of:

(i) Minor increases in the prices of sweet biscuits required to cover increases

in the cost of packeting and distribution.

(ii) Increases in the price of main crop potatoes required to cover the higher prices awarded to growers at recent Agricultural Price Reviews, minor increases in wholesalers' margins to meet higher transport costs, and increases in some retail margins to meet increased costs.

Ministry of Food, S.W.1,

3rd July, 1952.

G. LL.-G.

APPENDIX I

INCREASES IN THE PRICES OF SWEET BISCUITS

1. Biscuits in half-lb. packets. Recent costings have shown that the present additional charge of 2d. per lb. permitted to manufacturers in respect of biscuits packed in half-pound packets is inadequate, owing to increases in the costs of packaging materials and wages. The maximum retail prices for these packets are therefore being increased by 1d. per lb. at the earliest opportunity. Only about 74 per cent. of sweet biscuits are sold in packeted form. The All Items Cost-of- Living Index is unaffected.

2. Admission in biscuit costings of increased allowances to Wholesalers.- Since 1943 the prices of individual lines of sweet biscuits have contained, where appropriate, an allowance for wholesaling of 9s. 4d. per cwt. (ld. per lb.). This figure is unrealistic to-day in view of the increases in wholesalers' costs. I have accordingly decided to increase the allowance from 9s. 4d. to 14s. per cwt. (11⁄2d. per lb.). This increase will only affect the 12 per cent. of output sold through wholesalers, but the lines of sweet biscuits likely to be increased by the minimum step of 1d. per lb. represent less than 5 per cent. of total production. The effect on the All Items Cost-of-Living Index is negligible.

3. The prices of unsweetened biscuits, which were freed from control last February, are not affected by either of these increases.

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