§ 33. Mr. FLAVINasked the Chancellor of the Exchequer whether the great multiple shop concerns and certain other large companies have cleared very considerable quantities of tea from bond during the past few weeks and, if so, what 572 steps have been taken to deal with such attempts at forestalling any increase of duty that Parliament may impose; whether he is aware that two contradictory orders have been issued during the past few days by His Majesty's Customs, the effect of which has been to paralyse the whole trade and to prevent many single-shop grocers from obtaining any supplies whatever for their actual present requirements, and that many retailers, owing to the uncertainty as to surcharge, are unable to ascertain the actual cost to them of the duty-paid goods they are now selling; and whether, seeing that those traders who have made no attempt to forestall now find themselves at a disadvantage in competing with their less patriotic rivals, he proposes to take any and, if any, what action with a view to place the whole trade on a fair and equal footing in this matter and to relieve the congestion at public warehouses which the Customs orders have created?
§ Mr. McKENNAEarly in the present month my attention was called to the fact that abnormal clearances of tea and other dutiable goods were being made, both by certain large companies and by other traders, doubtless in order to evade any extra taxation which the Government might decide to impose for the purpose of financing the War; and I felt it my duty to issue instructions with the view of checking this unpatriotic action in anticipation of the Resolution which has now been passed by the House. Every effort was made to place the whole trade, as far as possible, on a fair and equal footing and to meet legitimate requirements. I am carefully considering measures which I hope to be able to submit to the House for preventing future attempts at forestalment.
§ Mr. FLAVINMay I ask the right hon. Gentleman whether he is aware that as a result of this large class of multiple firms drawing from bond more than their usual quantities of tea than their average before the Budget was introduced their supplies have been increased, and this gives them a double advantage over other traders?
§ Mr. McKENNAI cannot answer this question without inquiry, but I know of one multiple shop firm who, so far from having an increase, had a less amount of clearances.
§ Mr. FLAVINSurely the right hon. Gentleman is aware that the order issued by 573 the Customs authorities allowed merchants with tea in bond to draw an average supply for any day for the preceding three months, and as a result of the forestalling of that order the average was raised by the amount drawn out of bond before the Budget was introduced, and gave them an opportunity of drawing out larger quantities?
§ Mr. McKENNAIf my hon. Friend will give me particulars of the case to which he refers I shall be glad to inquire into it.
§ Mr. W. THORNEMay I ask the right hon. Gentleman whether he does not think that someone has given away Cabinet secrets, and can he find out the culprit?
§ Mr. McKENNAOh, no, Sir. Some of the clearances took place six weeks ago.
§ Mr. THORNEAnd some since.
§ Sir A. MARKHAMWill the right hon. Gentleman say under what authority he issued these instructions, and may I ask whether, until this House passes a Resolution, he has any authority whatever to act as an executive himself without the authority of Parliament?
§ Mr. McKENNAI believe not, Sir; but I propose at a future date to ask the House of Commons to justify the action I took.
§ Sir G. YOUNGERAs the question of the right hon. Gentleman's action has been raised, may I ask if he proposes to introduce legislation?
§ Mr. McKENNAThat was the meaning of my last answer.
§ Sir A. MARKHAMDoes the right hon. Gentleman propose to ask the House for an indemnity against any action the taxpayers may take?
§ Mr. McKENNAYes, Sir; that is the same thing.