asked the Secretary of State for Scotland for what reason he has refused the application for an off-sales licence to Messrs. Lemon & Co., Aerated Waters, Ltd., Dingwall, when at a meeting of the Dingwall and District Licensing Court the company's application was granted.

My right hon. Friend considered Messrs. Lemon's application carefully, but found no sufficient reason to justify the grant to them of authority to sell liquor by retail in a State Management District.

I thought that it was the policy of this Government to encourage competition. Is my hon. Friend aware that this firm has given a guarantee that it will not open a retail shop? Surely it is an anomaly when firms outside the State Management District can deliver within that area but independent firms cannot deliver in their own vicinity?

My right hon. Friend and the Government are always ready to encourage competition, but in this case my right hon. Friend felt unable to grant authority. He would do so only when an applicant is able to provide facilities which it is impracticable for State management to provide.