Tom Watson esq.,
Dear Mr Watson
Wine purchases by HM Government
I have followed this news item and I would like to offer you my comments. Let’s establish, at least, that bottles of wine are not warheads.
Leaving aside for a moment the specific points they raise for denying you access to their database, I don’t see why the FO can provide any grounds for declining to make available overall figures for acquisition costs, increases in values, stocks held etc etc.
Now to the specifics. I don’t intend to mince my words because arguments put forward in the letter you publish on your site dated 28th June from Robert Alexander contains a number of false suppositions. My own conclusion is that these statements were made intentionally to mislead you and were made in the full knowledge that they would mislead anyone who read them.
1.’Releasing information would hurt suppliers, thus ending discounting and prejudice the future dealings with GH to obtain cheap prices’. The wine market is a transparent market. Prices on wines, retail, wholesale and at auction are available in an instant and as a result the market is highly competitive. Certainly, some discounts may be given for larger orders. It is however wrong, in my view, to suggest that GH’s discounts might be curtailed and in any case for the more expensive wines, which presumably make up the bulk of the department’s investment, their statements regarding discounting would not be applicable. Additionally, the overall size of the government cellar is rather small and would have no impact on the wine markets as a whole.
2.The question as to providing detailed information – they are prepared, in some cases, to reveal the name of the wine, but not the vintage – because it might affect the ‘volatile wine market’ and indicate an endorsement of specific producers, presumably affecting the discounts the GH might obtain and values. This too is a completely false picture (someone should tell them this isn’t ‘Yes Minister’). Everyone in the wine market, producers, suppliers, critics, consumers (if sufficiently interested) know perfectly well what is a good wine, a good year, and, yes, a good price. I think it more likely, for example, they probably don’t want you to know that they may have bought 23 cases of Margaux 1993 at a high price.
3. The wine market is far from ‘volatile’ or is this a reference to the fact it is a liquid? All research shows that it is one of the best performing and most consistent investments.
4. It is suggested that the GH considered its position following consultation with its suppliers. Were I a supplier and was asked by the GH in a way which suggested they did not want to publish information about their activities, I wouldn’t want to dispute it with them either. Would you? I have already explained in (1), (2) and (3) above why this is a false premise.
A copy of a meeting of the Committee which advises the GH is published on the web –http://foi.fco.gov.uk/content/en/foi-releases/2010/158-243. This seems to me a highly negligent way to be proceeding.
There are serious issues pertaining to this subject which might form a paradigm for other government departments. I recently wrote an article which was published in the Drinks Business (June 2010) and which was based upon a Quality Price Index for the new Bordeaux vintage (2009). I attach it to this email. As you can see, very clearly, there are wines which might be purchased by any government and which would provide good value for money even in an exalted year for Bordeaux such as 2009.
Further, the FO or any government department might adopt a strategy of careful investment which might provide drinking wines for its functions at little or no cost to the taxpayer by periodically divesting itself of wines it owns – I am sure Christie’s/Sotheby’s would be only too happy to help.
A combination of acquiring wines at the right prices at the right time, buying high quality wines which are relatively inexpensive, seeking sponsorship for certain events could probably reduce the cost considerably.
I would not be content with the lists of the wines themselves, costs etc but also I would like to know their strategy and objective for their wine acquisitions, how they put out a tender for the wines, etc etc.
Perhaps if you could make it all sound a little less like sour grapes you might get a little further?
Kind regards,
Fabian Cobb, http://www.finewinejournal.com
