asked the Minister of Food if he is aware that whilst the cost of wages, overhead expenses and rates, lighting and heating charges to the grocery trade have greatly increased during recent months, the increase in the price of various commodities has resulted in a reduced percentage of profit on turnover; and if he will review the margins of profit laid down for the grocery trade.

We do not fix margins on a percentage basis, since this would give a disproportionate increase in net profits when prices have to be raised. Our policy is to adjust prewar margins to allow for changes in costs, including any expenses which vary with the price of the goods. I have no reason to doubt that the average grocer is at least as prosperous now as before the war, but we are, of course, always ready to consider any representations from the trade on the adequacy of margins or profit levels.

Is the Minister aware that in the case of dried eggs, whereas the price has doubled, the margin has gone up by only 2d. on 3s., and as this involves very much more capital being laid out by the grocer will he consider the matter again?

As I say, we are always open to representations on this matter, but we are also open to representations as to the great need for minimising distribution costs.

Mr. Amory:

Will the Minister bear in mind in this connection the position of the trader in a small way of business who often has to cover a large area and on whom these rising costs bear very hardly?

Yes, Sir.