HEAVY LOSSES

Wairarapa Times-Age, 10 August 1940, Page 6

HEAVY LOSSES

BRITAIN'S FOOD POLICY.

MEAT. WHEAT AND BACON.

Losses estimated at £20,500.000 a year on meat and £36.000,000 on wheat will be incurred by the British Government's food policy. These figures were given in the fourth report of the Select Committee on National Ex- ] penditure which criticised the workings of the Ministry of Food. The committee recommended the setting up of a special committee to study methods and costs of food manufacturing. processing, storage, transport and distribution and to make recommendations as to possible economies. Ollier recommendations were that a close study should be made of the proposals for rationalising the system of warehousing and transport of foodstuffs. made by the Director of Food Transport and Warehousing; and that a more generous provision be made for development of cold storage. Dealing with the trading loss on home-killed meat, the committee says that on the present basis the Government will be £20.500.000 out of pocket in a year—a sum "which, in effect, represents the excess of the prices paid to the British farmer over those at which the Government think it right to sell meat to the British consumer.

"It appears to us questionable whether this £20.500.000 should not properly be regarded as a subsidy to British farming rather than as a contribution to keeping down the cost of living,” it is added. "All that can be 1

said is that it appears that something more than the competitive value is being paid for home-killed meat." The committee also considers that the farmer is getting a price for wheat which is more than its true competitive value.

"The total loss being incurred by the British Government on wheat (the loss is now estimated at £36,000.000 a year, as compared with about £25.000.000 according to the position in February) would not be so groat as lit is unless it was also part of the I policy of the Government to ensure that the British farmer gets a price for his wheat which is something more than its true competitive value.” The Ministry of Food, it is added, is also incurring appreciable losses on bacon, the total depending on Ihe amount sold. The estimate given in February was £BO.OOO a week. In. effect, this includes sums which the Treasury might have been paying out under the Bacon Industry Act oven if there had been no war.

"It is questionable whether the present distribution of subsidies is obtaining lite best value for money in the way of giving help where it is most needed and encouraging consumption

of the most valuable foodstuffs," says the committee. "As regards future policy, the direction of expenditure on subsidies should be considered in connection with the general nutrition policy." Calling for forethought in the planning ol food policy, the committee suggests the setting up of an authoritative body of scientists and practical men to work out a basic plan for the future. This plan should envisage the possibility that drastic changes may have to be made and that conditions might have to be faced where it would be necessary to make full use of every ounce of available resources.