Food firms cook the books

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Two major food companies have warned Labour Prices Secretary Shirley Williams that they are in danger of going out of business - unless profit margins are increased.

These cries, coming from firms that have plundered workers for years with continual price increases, imposed using their monopoly control of food supplies, must be greeted by workers with the greatest scepticism.

It is a cynical move to pressure Williams (an extreme right-winger) into further slackening the already minimal controls on prices and profits brought in by the Labour government last March.

Williams of course needs little pressure to accept the idea of higher food prices. She has only recently been stomping the country on joint referendum platforms with Tory leaders campaigning for the Common Market - an organisation designed to maintain high food prices in the interests of farmers profits. The effects of EEC entry on British farmers have already appeared in the large scale destruction of milk.

INFLATION

Of course there are financial problems in the food industry -just as there are in all other capitalist industries. While costs of raw materials and maintainence of plan:

go up rapidly cheer =* =::= sales have been :es:.- *:=: Williams - campaigned with Tories.

cut in workers' eeal wages - also caused by inflation.

The rate of profit in the food industry is therefore falling, while the employers' need for working capital is increasing. But this is true of all industry, not just food manufacture.

But of course the employers maintain a discrete silence on the hundreds of millions of pounds pumped into the food industry by the Labour government in the form of food subsidies.

These subsidies aimed at preser ving profit margins. and were inanced by taxing the "re.*: successive Heales mes The monopolies' "shock warning of impending collapse is a calculated move therefore. As the Financial Times said: "As with much of manufacturing industry, the food processors took a long time to discover that proof of hardship was needed to sway the government, and that solemn protestations of difficulties were not enough". [25.6.75] In other words they have learner to "cook the books" to present the worst possible picture and pressure for increased prices and profits.

THE If manufacturers are in difficulties, the answer is simple for the workers movement - make them prove the position by demanding they open the full accounts (including receipts of government cash) to elected trade union committees. This will clear away the bluff and deception.

All government subsidies must be withdrawn. If the privately-owned food monopolies cannot thei continue without raising prices and inflicting speed-up - or if they pro prose closing down, then clearly they must be nationalised, paying compensation only to small savers.

The nationalised firms must be piaced under the managemer: :: workers committees 20: :::=:::

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