39. Colonel THORNEasked the Food Controller whether his attention has been called to the rise in the wholesale price of tea at the Mincing Lane auctions of last week; and if he will state the amount of the advance and the approximate profit to the Ministry of Food accruing therefrom?
§ Mr. McCURDYI am aware that the price of tea sold by public auction during the week in question was in excess of the average price at which tea was distributed under the ballot, the average price realised being at the rate of approximately Is. 2½d. per lb., as against an average selling price of Is. 1d. per lb. under the ballot. So far as can at present be ascertained, the approximate profit on these sales was £34,000.
40. Colonel THORNEasked the Food Controller if he will state what steps, if any, are being taken to stop the rise in the wholesale price of tea; and whether he can give any assurance that consumers of tea will obtain their tea supplies at a reduction of 2d. per pound on and after 2nd June next, the date upon which the duty on British-grown tea is reduced by 2d. per pound?
§ Mr. McCURDYThe Ministry of Food are taking steps to stop the rise in the wholesale price of tea by releasing larger quantities to the wholesale dealers. Dur- 11 ing June at least 30,000,000 lbs. of tea will be put up for sale at public auction; and, in addition, ballots will be held for a further 25,000,000 lbs. if applications for that quantity are received from licensees under the ballot. As the normal four-weekly consumption of tea is approximately 25,000,000 lbs., a reduction in wholesale prices may be expected as the result of the releases to which I have just referred. I may say that the announcement of the quantities to be released during June has already had the effect of reducing wholesale prices for all except the finest grades. I am unable to give the assurance for which the hon. and gallant Member asks in the last part of the question. In any event, considerable quantities of tea on which the present duty of Is. per lb. has been paid will be on sale for some time after 2nd June.
§ Mr. LAMBERTWhat regulations will be made so that this reduction in the price of wholesale tea cannot be pocketed by middlemen?
§ Sir C. HENRYAre those concerns which have a large number of multiple shops included in wholesale dealers?
§ Mr. McCURDYI will make inquiry.
41. Colonel THORNEasked the Food Controller whether instructions have been given by the Ministry of Food to the Tea Brokers' Association of London to place only a limited quantity of tea belonging to the Ministry of Food upon the Mincing Lane market for disposal to the trade; and whether he objects to the Ministry of Food disposing of their surplus stocks of tea by private treaty; and, if so, will be state his objections?
§ Mr. A. McCURDYAfter consultation with all sections of the trade, the Food Controller issued instructions to the Tea Brokers' Association that, on the resumption of public sales of tea on 5th May, only a limited quantity should be put up in public auction during the first week, in order that buyers might have an opportunity of establishing a basis of valuations and owing to the fact that the slowness of the bidding in the first sales would prevent brokers from dealing with large quantities of tea. I may add, however, that during last week the amount of tea offered in public sale exceeded a normal week's consumption, and that larger quantities will from now onwards be put up week by week to meet the demand as 12 it arises. It is the policy of the Food Controller to give every recognised market buyer of tea an equal opportunity of securing a proportion of the available supplies, either through public sales or through the ballot. It is not proposed to sell tea privately to individual firms, a course of action which would necessitate the establishment of an organisation of considerable size if all individual firms were to be accorded the opportunity of effecting private sales through the Ministry,