§ Mr. H. C. LEAasked the First Lord of the Admiralty, referring to the recent purchases of Demerara rum, including the mark F.B., is the Admiralty aware that the said parcels had already passed through the Government broker's hands on account of other interests; and whether he will take action to prevent the Government broker also acting as a dealer?
§ Mr. McKENNAThe Admiralty is fully aware of the circumstances of the purchases referred to and is fully satisfied as to the regularity of the broker's action. As I have stated in reply to previous questions, the Admiralty broker does not act as a dealer.
§ Mr. H. C. LEAasked the First Lord of the Admiralty whether he was aware that, in consequence of the manipulation of the market by the Government broker, with the tacit consent of the Admiralty, Demerara rum is now and has been for some time past standing at a fictitious price, with a result that the British public is paying from 3d. to 6d. a gallon more for rum than it ought to; and what action he proposes to take to alter this state of affairs?
§ Mr. McKENNAThere has been no manipulation on the part of the Admiralty-brokers. A comparison of the London prices, where the Admiralty purchases are usually made, with those of Liverpool, where prices have ruled higher than in London for the past eight or nine months, seems of itself to show that the London price is in no way fictitious. The Admiralty has no advantage in or influence upon this market, except such as a large buyer for actual consumption naturally possesses, and by buying at favourable moments owing to the Department being well advised as to probable course of supplies and the market. No action is therefore proposed.
§ Mr. H. C. LEAasked the First Lord of the Admiralty, with reference to his answer of the 2nd December last regarding purchases of rum by the Admiralty for the years 1906, 1907, and 1908, that the whole of the purchases were made through one firm of brokers who obtained offers in the open market without restriction of free competition; whether he is aware that in December last SO puncheons, marked G.G. in a diamond, excess. "St. Croix," were bought by the Government broker himself to arrive some considerable time before the sale to the Department by the Government broker; and in view of the fact that the present broker is a dealer as well, can he give an assurance that Ad miralty purchases of rum will in future not be made through one firm alone?
§ Mr. McKENNAThe rum in question was purchased at the lowest price of that or any other mark; the Admiralty practice is to buy "on the spot," and not "to arrive." The Admiralty is fully aware of the circumstances of this purchase. There is no irregularity whatever in the purchase of a parcel for the Admiralty which had already been sold "to arrive" by the same broker on behalf of another client. Whether such a parcel would be selected by the Admiralty does not depend upon the broker, but upon the independent selection of the Admiralty inspector from the total of all brands offering at the moment. As I have stated in replies to previous questions, the Admiralty brokers do not act as dealers, and no change in Admiralty procedure is proposed.