COST OF LIVING

Wairarapa Times-Age, 10 February 1940, Page 5

COST OF LIVING

9 BRITISH SUBSIDY POLICY CRITICISED BY LABOUR MEMBER. SIR J. SIMON’S DEFENCE. By Telegraph—Press Association—Copyright. LONDON, February 8. Speaking in the House of Commons the Chancellor of the Exchequer, Sir John Simon, said that the Government was subsidising the cost of living to the extent of £50,000.000 a year and had prevented a rise of 12 points in the food index. The subsidies included over £12,000,000 to keep the price of milk from rising a penny a quart. The wheat and meat subsidies cost £480,000 and £320,000 respectviely a week, and the bacon subsidy, £BO,OOO.

Information on the working of the scheme was sought by a Labour member in the House of Commons, Mr Alexander, a radio message reports. Mr Alexander complained that the taxpayer was already providing £40,000,000 a year through extra duties on sugar and tea. Now £50,000,000 more was to be taken to subsidise food prices.

The Chancellor of the Exchequer, Sir John Simon, said he did not claim that his policy was a complete policy in itself, but it was in the nature of an instalment.

Giving illustrations of how each subsidy kept down food prices, Sir John said that but for the subsidy of £26,000,000 on wheat, the four-pound loaf, which cost 81d, would cost 1-J-d more. The milk subsidy of £12,000,000 kept the cost of a quart at 7d. Without it, the cost would be Bd. The meat subsidy of £16,000,000 had averted a rise of 2d a lb in home-killed meat. Sir John warned the House that the quality of certain goods must inevitably be reduced if Britain was to win the war.